"Many family offices run lean teams in which institutional knowledge, external relationships, and decision-making rest with a small number of individuals. When those roles are hard to fill, resilience becomes harder to scale. Survey data confirm the talent pressure, with more than 90 per cent of family offices reporting difficulty recruiting and almost 50 per cent citing retention as an ongoing concern."
"Operational continuity often comes down to the basics of roles, decision rights, and what happens when someone steps out of a role. Family offices frequently rely on external vendors for services, including legal and tax planning. When external providers carry a meaningful share of the workload, internal coordination and clear accountability become even more important."
"Succession planning is also explicitly linked to continuity in widely used governance standards. The G20/OECD Principles of Corporate Governance describe selecting and overseeing key executives and overseeing succession planning as core oversight functions with a view to ensuring business continuity."
Family offices encounter substantial operating risks centered on people management, despite addressing technology, investment, and fee issues. Lean team structures concentrate institutional knowledge, relationships, and decision-making among few individuals, creating vulnerability when positions become difficult to fill. Survey data reveal over 90% of family offices struggle recruiting talent, while nearly 50% face retention challenges. Operational continuity depends on clear roles, defined decision rights, and succession protocols. Many family offices rely on external vendors for legal and tax services, making internal coordination and accountability critical. Governance standards, including G20/OECD Principles, emphasize succession planning as essential for business continuity. Addressing talent pressure requires focus on incentives, decision rights, and succession planning as central components of long-term resilience.
#talent-management #succession-planning #operational-continuity #family-office-governance #retention-and-recruitment
Read at London Business News | Londonlovesbusiness.com
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