Having cut her teeth as general counsel at a legal department of a unicorn start-up, Dr Nadine Lilienthal experienced first-hand what it means to lose control of governance systems. When a company scales too quickly, the organisational structure tends to outpace the systems that keep it in place. “So I was constantly chasing information, trying to get everything under control, and of course, technology would be a good way to do that,” she explains.
Today, she serves as the Head of Legal Expertise and Alliances for the DACH region at DiliTrust. And she can detail step-by-step when family offices start to control.
When spreadsheets reach the limits
Research shows that a critical breaking point often occurs when a family office reaches approximately 30 managed entities. At this threshold, standard manual tracking completely breaks down. “When a family office has to manage more than 30 companies, simple spreadsheets just stop working,” she explains.
The issue is, there isn’t a big flashing warning sign. Instead, family offices tend to just keep manually adding new tabs and names until the whole operation starts to feel unmanageable. Before you know it, they are facing transaction delays, missed deadlines, and even compliance penalties.
So we asked Dr Nadine for some practical advice on how to spot the trap before the dominoes start to fall. And she shared key questions every family office should be asking:
- First, can you quickly answer if you have an up-to-date overview of every entity, or are details starting to slip through the cracks?
- Second, do you know the main signatories as well as proxies for each entity?
- And finally, if both are unavailable, do you have a solid succession plan for someone local who can handle things on the ground?
Of course, if you’re managing more than 30 entities, you know these questions are near impossible to answer from the top of one’s head. And that is exactly why governance technology becomes so necessary.
The benefits of modern entity management
Moving governance to a digital platform can be a game-changer for family offices feeling the loss of control. Instead of chasing after information, family office professionals can access the whole overview of their portfolio from a centralised dashboard. They can easily query the chain of command for signatories and even automate repetitive compliance tasks.
Dr Nadine shares an example of a family office client in the Middle East. Established over 150 years ago, they had amassed over 60 different entities over time. Needless to say, they didn’t have a centralised digital platform to view all shareholdings or keep track of registration deadlines. Before they started using DiliTrust, they were essentially running the whole operation through emails and spreadsheets.
Once they adopted Dilitrust’s two modules, the board portal and legal entity management, the fog finally lifted. They could see exactly what was happening across the entire group. Automated reminders meant they stopped worrying about surprise fines or expensive delays. And as Dr Nadine puts it, there is a real sense of relief that comes with using the right legal tech, a quiet reassurance that everything is finally under control.
Choosing a governance system
So we asked Dr Nadine for three non-negotiables that a family office should consider when choosing a governance platform. Firstly, families should prioritise robust security credentials. She emphasises looking for certifications like ISO 27001. Family offices need to know exactly where their data is hosted and ensure the platform offers granular security access controls.
The second priority is making sure the system is actually easy to use. Imagine a board member hopping on a two-hour flight and having to prep for a meeting. With DiliTrust, they can click a link in their email and jump straight into a virtual meeting room where all their documents are already organised. And they can even sync everything to an iPad for offline access, so the work does not stop just because a Wi-Fi connection is not available.
Finally, families should prioritise a service provider with a proven, long-term history. Family offices are built to last across generations, and your governance platform should reflect that stability. Choose a partner who will genuinely stand with you a decade from now.
"That stability is what makes DiliTrust compelling to me," Dr Nadine says. "We have 30 years of tradition, but we're also genuinely innovative because we've brought in startups and new teams. I love that combination of heritage and agility."
Keeping up with your portfolio
When your portfolio is moving at the speed of global markets, waiting for your governance to catch up is an untenable risk. With the uncertainty in geopolitics and the pervasiveness of AI, the ability to take immediate action is the only way to prevent collateral damage in a time of crisis.
"It’s vital to know your data and have information at your fingertips," she explains. "Without it, you can’t make proper decisions, and you certainly can’t grow your family office."
Ultimately, gaining control of your family office governance system now isn’t just about ticking compliance boxes. It’s about managing the complexity and, in fact, turning it into a competitive advantage. After all, the goal isn't just to keep pace with your portfolio, but to ensure your governance framework is robust enough to accommodate it.