There are very few things that trouble wealth owners more than the critical question of how the next generation of family members will assume the mantle of leadership of the family enterprise, be good stewards of the family wealth and contribute positively to society, culture or politics. At Citi Private Bank, we believe leadership succession planning to be a universal imperative for families regardless of their geographical, cultural or religious origins.
Leadership succession is always challenging, requiring careful preparation and execution, as illustrated by the numerous disappointing outcomes – from failures to missed opportunities – in corporate successions.
But family leadership successions are undoubtedly riskier given the complexity inherent in leading a family. While corporate leadership provides a clear delegation of authority, family leadership is exercised among siblings or family branches who view themselves as peers equally sharing ownership, control, and decision-making authority.
Finding a path towards leadership in a family of wealth can be fraught with uncertainty and risk. So, how might a family approach such transitions in a way that acknowledges the differences and nuances in roles, attitudes, and motivations?
Those who successfully navigate generational leadership transitions typically approach it in a manner which can be summarized in the eight best practices that we outline in this whitepaper. They require nuance and adjustments based on the family’s particular set of circumstances and dynamics, even if the basic tenets remain the same.
We hope that this whitepaper and the outlined best practices prove to be beneficial, and that the suggestions offered herein can be adapted to suit the particular needs of your family.