Podcast

The Ten Domains of Family Wealth

On this episode of the show I am joined for a second time by Dr Jim Grubman who regular listeners will remember from our previous discussion on Successful Transitions in a Family Business

This time Jim is joining me to discuss The Ten Domains of Family Wealth. This is a brilliant piece of thought leadership from The Ultra High Net Worth Institute.

“The UHNW Institute has thoroughly examined and analysed the broad range of needs and services within family wealth. Based on this analysis, The Institute sees nine major content domains and one core process domain as defining the landscape families inhabit when wealthy”

Here is the diagram of the nonagon that highlights the Ten Domains of Family Wealth. You can find out more about this and the work of The Ultra High Net Worth Institute, here:

The Ten Domains

The Advisor – Client Relationship – Understanding of and skills for working with family wealth clients in a collaborative, empathic, and ethical manner. These skills support excellent service in all the content domains.

Integrated Financial Management – Financial, tax, investment, accounting, and business competencies for handling wealth complexity

Estate Planning and Legal Issues – The many areas where law and wealth intersect for families and family businesses

Risk Management – Insurance, security, and other risk management services

Governance and Decision Making – Organisation, regulation, and implementation of decision-making processes for families and family businesses

Leadership and Transition Planning – Strategies and processes for leadership development, growth, and transitioning

Learning, Development and the Rising Generation – Assessment, design and implementation of educational and other procedures for Rising Generation and other family members

Family Dynamics – Personal and family strengths and challenges related to wealth, relationships, and the family system

Health and Well-being – Intersection of health, disability, and wellness with the complexities of wealth

Social Impact and Philanthropy – Aligning investment and philanthropic decisions to create social benefits and promote the values of the family

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Listen to the show here:

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The Importance of this model

For me the importance of this model can not be underestimated. In my interview with Prof. John A Davis about the Three Circle Model I comment on the beauty of the simplicity and complexity contained in that model. For me the same can be said of this model.

Under each of the domains there is a huge degree of complexity, highlighting the need for expert advice to be taken, but the fact that the model also highlights that there are Ten domains of family wealth and that it is highly unlikely that any one firm can provide services that covers each of the domains.

This to me also highlights the need for collaboration between advisers and advisory businesses. As we point out in the interview, this model has been designed by listening to the frustrations of wealthy families and not from the perspective of advisers with services or products to sell.

We speak about the homunculus in our discussion and how far too much emphasis is placed on wealth and money when looking to create services for families of wealth. I hope that professional services firms will listen to this episode and align their services to this model and approach the domains that they are not experts in with a sense of collaboration.

I have added some additional thoughts on this below.

Find out More

You can find out more about Jim Grubman Ph.D by visiting www.jamesgrubman.com

You can find out more about The Ultra High Net Worth Institute by visiting www.uhnwinstitute.org

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Russ Haworth

I am a specialist family business adviser. I work with family businesses to help them to navigate the complexities that come from being in business together. Whether it is governance, succession planning, family dynamics or any of the other challenges you may be facing, please get in touch. I can help

Collaboration - The Final Frontier?

I have recently set up my own business, it is called The Family Business Partnership. The word Partnership is deliberate and is a recognition of the core ethos of my business, which is ‘collaboration’.

I have a very strong belief that if your business is aligned to your clients’ needs that you cannot truly serve these clients without collaboration.

Looking at the needs of the family businesses that I serve, it is clear that no single firm can cater for all of these and so the need for collaboration is obvious.

The Ten Domains of Family Wealth*

I have recently become involved with The Ultra High Net Worth Institute.

“The UHNW Institute will operate as a non-profit and independent “Think Tank” – A publisher and curator of exceptional thought leadership and content relating to UHNW families, family offices, their advisors and the industry.

The UHNW Institute has thoroughly examined and analysed the broad range of needs and services within family wealth. Based on this analysis, The Institute sees nine major content domains and one core process domain as defining the landscape families inhabit when wealthy”. The following graphic and explanations help clarify each area: