Rupert Lee-Browne, the founder of payments fintech Caxton, believes that family offices should take a page from the corporate world and embrace technological upgrades to manage their wealth efficiently. While many families may not experience the dramatic chaos depicted in shows like Succession, it is important to implement strategies that drive success and growth.
One such strategy is marginal gains theory, popularized by performance coach Sir Dave Brailsford, which involves making small incremental improvements at every possible stage of a process. This approach proved successful for British Cycling, leading to multiple gold medals at the Beijing and London Olympics. The cumulative effect of these small improvements can be extraordinary, making it a valuable tool for family offices looking to navigate challenging economic times.
In order to safeguard wealth for future generations, family offices must regularly review and improve every tool and process, from payroll management to data security. Greater automation, such as software-as-a-service solutions that integrate with popular systems, can help streamline operations and improve efficiency. However, it is important to balance innovation with the personal approach that sets family offices apart from other private companies.
Strategic advisers play a crucial role in helping family offices navigate complex financial decisions and potential conflicts. By encouraging open communication and providing tailored solutions, advisers can help align family members on decision making and prevent disharmony. They can also help match the unique needs of a family with the right businesses and technology systems to ensure long-term success.
By leveraging the value of marginal gains and working with independent advisers, family offices can optimize their operations and secure buy-in from all stakeholders. Finding the right balance between innovation and tradition is key to success in managing wealth for future generations. With the right strategies in place, family offices can stay ahead of the curve and achieve their financial goals.
