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Life Cycle of the Family Office: Organic Growth

December 5th, 2022 by admin

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Starting a Family Office is still an area unknown to most. In this Blog series, we will break down our Life Cycle of the Family Office with case studies covering real-life examples of each stage of the life cycle.

Families in the Organic Growth stage have typically purchased one or more homes in various locations, often throw events to entertain investors and share their wealth with family and friends. These families are asked by friends, family, and various charitable organizations to donate and invited to join corporate and/or philanthropic boards. This stage is when these families often start delegating to staff or third-party team members.

Case Study

The family we are taking a look at is a first-generation-wealth couple in their late 30’s with two young children. Currently, the support includes an outsourced Controller, Personal Assistant/House Manager, Nannies, Housekeeper, Executive Assistant.

What Seems to be the Issue?

The family just received a 6 month notice from their Personal Assistant/House Manager. There is currently no high-level management or structure implemented in the home and the staff have a huge lack of communication with the family.

How Were These Problems Solved?

Through our thorough assessment and audit, EFO identified various gaps and implemented solutions as approved by the client. Our team onboarded the client and their employees to GSuite and created shared calendars for managing the homes, personal and children’s schedules. EFO developed a filing structure and property manuals to be used by future staff. EFO provided market data on comparable compensation and benefits, set up the payroll and benefits while onboarding each employee and performing an orientation to ensure the employees understood the system and their benefits. We provided a new staffing plan with job descriptions and gave feedback to the family around staff management and communication. EFO also coached their outsourced Controller on how best to reconcile employee spending and improve the bill pay process. EFO recruited and hired their Estate Manager who later asked for help hiring a House Manager for their main home. Through the help of EFO, the Principals successfully completed their short term goals which allowed for more of their time to be focused around their family and business.

Can you relate to this story? We’d love to hear your experience and how you managed the process. Do you believe there was an aspect we missed in our assessment or solution? If so, please share your comments or observations. We welcome your insights.

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Posted in: Lifecycle of the Family Office

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Life Cycle of the Family Office: Wealth »