Source: Russ Alan Prince from Forbes
“Behavioral best practices encompass the mindset and the actions, which result in single-family offices operating at extremely high performance levels,” explains Angelo Robles, founder and CEO of the Family Office Association. “The bottom line is grander outcomes for the ultra-wealthy and usually for the senior executives producing these powerful results.”
According to John Bowen, founder of AESNation, “The behavioral best practices can be applied consistently with the aim of creating a high-functioning single-family office. In our experience, raising the standards of even successful single-family offices, they tend to be applied more selectively, which is commonly a function of expressed pain points and pressing objectives. Even when applied selectively, the results are almost universally quite substantial.”
Based on the research and experience of Rick Flynn, Co-CEO and founding partner of LVW/Flynn, and author of The High-Functioning Single-Family Office, the following are five instrumental behavioral best practices:
- Results Driven: In high-functioning single-family offices, it is all about results. There are clear goals and objectives. This regularly takes the form setting quite high expectations and ensuring accountability.
- Thoughtful Decision-Making: In many respects a single-family office is like a formidable family business. In high-functioning single-family offices, the ultra-wealthy families and senior management are proficient at decision-making taking into account diverse priorities.
- Strategically Outsourcing: Core to high-functioning single-family offices is that the ultra-wealthy and senior management know there are very few things they do well and what role these skills and expertise play in being successful. Thus, they stick to those deliverables where they are exceptional and skillfully manage external experts.
- Purposefully Connecting: Senior executives and generally more so the ultra-wealthy have extensive and very useful personal and professional networks. To generate the greatest value from these extensive and powerful networks requires thinking about them as a means to an end. High-functioning single-family offices are replete with expert networkers.
- Maximize Relationships: Being able to forcefully capitalize on the wealth, stature, and connections of the ultra-wealthy, likewise with the relationships of the senior executives, is characteristic of high-functioning single-family offices. Negotiating prowess is essential.
These five behavioral best practices are by no means all the ones we have been able to extract from the meta-analytic and ethnological studies. However, they are exceedingly potent and, in many ways, foundational. What is also quite insightful is that these behavioral best practices are also characteristic of those who create their own fortunes, especially those who create Croesus level personal wealth.