investing in transition planning to keep wealth in the family: interview with: leslie voth - elite...
TRANSCRIPT
Investing in Transition Planning to
Interview with: Leslie Voth,
President, Pitcairn
Planning for and embracing generational
change is a key element of a successful
family office business model, says Leslie
Voth, President of Pitcairn. Family
offices, whose operating policies and
practices remain static year after year,
risk losing their ability to optimise
results for future generations of family
members.
Voth added that transitioning private
wealth requires clear purpose, a
willingness to engage helpful resources
as necessary, and communications
geared to the unique needs of each
generation. Increasingly, we are
learning that effective communication
makes for a superior private wealth
strategy.
A speaker at the marcus evans Elite
Summit 2012 , i n Mont reux ,
Switzerland, 28 - 30 November, Voth
shares her unique insights into how
family offices can manage talent and
encourage their next generation leaders
to derive the best financial results and
returns for the family.
Why is succession planning
essential for family offices?
Recent surveys have shown that
succession issues and continuity
planning are leading topics concerning
families. But effective succession takes
a number of years to be realised
because the next potential generation of
leaders has to be identified and
developed. They must understand the
need for more flexible planning. Senior
talent currently in an office may be
conflicted if they do not see the risk of
not dealing with talent issues before
they become problems. Continuity can
only be established with planning and
expert advice.
When there is no comprehensive plan
for the transition process, the
experience can be traumatic and family
relationships may be strained. An ideal
way to tackle this problem is for the
family and the compensation committee
to create a succession planning
document, stating every position to be
taken in the event of certain
circumstances. The document can be
updated every other year to reflect
necessary changes.
Transition is never considered to be
simple. How can family offices ease
the process?
In times of transition, families especially
require good planning. Family offices
can bring in resources to resolve any
issue and designate teams to work on
the plan. Once a plan is in place, a
governance structure should be formed
to support the next generation and
committees established to communicate
the plan to the next generation and
educate its members about it. Financial
goals need to be established for
outstanding financial results to be
achieved.
Communicating the transition plan is
critical. Family offices should make
suggestions on how best the plan can
be communicated to the family. Good
communication always helps build
stronger family relationships.
How should family offices manage
their talent?
Family offices need to implement a
dynamic leadership style and empower
employees to be more responsive to
making decisions without prior approval.
This cultural change is needed because
new, younger generations have to be
communicated with in a different way.
They want the decision process to be
more transparent. If this is not a
priority, the most current, competent
and talented professionals will not be
attracted and the best investment
results will not be achieved.
Is there any further advice you
would like to share with family
office directors?
Understanding individual family
principles and very close collaboration
are essential to the decision-making
process. The very specific, individualised
needs and wants of the family should
always be at the forefront of how the
family office supports the family.
Good
communication
always
helps build
stronger
family
relationships
Keep Wealth in the Family
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About the Elite Summit 2012
This unique forum will take place at the Fairmont Le Montreux Palace, Montreux,
Switzerland, 28 - 30 November 2012. Offering much more than any conference,
seminar or trade show, this exclusive meeting will bring together esteemed thought
leaders in private wealth management and market leading asset and fund managers
for a highly focused and interactive networking event. The Summit includes
presentations on asset allocation trends, wealth transfer, streamlining tax
efficiencies and manager selection strategies.
www.elitesummit.com
Contact
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Tel: + 357 22 849 400
Email: [email protected]
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