Andra Ilie, Senior Manager, Family Office and Governance, discusses the importance of having a clearly defined purpose when planning a successful journey for the family and their wealth.
“Whilst different people might have different opinions around their family’s journey, with a clearly defined itinerary, roles, responsibilities and boundaries, no mountain is too high.”
Every family business is different and so too are its members with their own views, ethos and perspective. Blending all these together into a uniting common goal is imperative for furthering the family’s success.
Family governance refers to the particular framework for communication and decision-making that a family may choose to follow. Conversations often start with looking at existing arrangements and mapping them across the family’ purpose for their wealth. Before embarking on any journey, it is important to ensure that a clearly defined destination and a plan on how to get there are established and communicated to all stakeholders.
A useful exercise to encourage reflection in a multigenerational family can be swapping roles between the generations and encouraging understanding from a different perspective. This in turn can facilitate the reaching of mutual agreement on matters such as succession planning and devising a solution that is suitable for all.
At KPMG, our family business and family office consultants can help clients articulate what their shared destination should look like and help them map their paths.
For further information please contact Andra Ilie or your usual KPMG contact.
© 2020 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.