Family Office Navigator

Prof. Dr. Peter Vogel
Professor of Family Business and Entrepreneurship
Director of the Global Family Business Center
peter.vogel@imd.org
FAMILY OFFICE NAVIGATOR
a new framework to help families
preserve their legacy and grow their
total family wealth across generations

© Peter Vogel, IMD. Please do not reproduce without explicit permission.
THE WORLD OF FAMILY OFFICES
IS RAPIDLY TRANSFORMING

Increasing complexity
of investments
Increasing complexity
of family, ownership
& business (FOB)
Increasing numbers
• The world around us is becoming increasingly complex
• Families wish to gain exposure to new / different investment
opportunities, traditionally not served by banks (e.g., crypto, SPACs)
• Cross-border assets and families
• Exposure to different national and international regulations and systems
(admin, tax, legal, etc.), demanding close monitoring and professional,
customized management.
• Overall increase in wealth (HNWI / UHNWI) worldwide
• Rise of a new class of mega wealth owners due to digital revolution
• Rise of wealthy families in Asia
Trendiness / glamour
of having a family office
• There’s a hype around family offices
• Many think that setting up a family office is the ultimate goal
3
Why do we see such a rise in family offices globally?

4
Protect family
privacy,
anonymity and
confidentiality
Active deal
sourcing and
pipeline
management
Status
Consolidated
reporting and
centralized risk
management
Wish for
personalization /
customization
Desire for
control and more
independence
(e.g., from banks,
accountants, …)
Liquidity events
(partial or total sale
of business,
dividends …)
Desire to
delegate burden
of wealth
management
Create a hub
for the family
(to foster unity,
develop
talents,…)
Gain access to
unconventional
investment
opportunities
Achieve
excellence in
investment
management
Support family
& ownership
governance
& act as nexus
to business
Preserve family
wealth & support
inter-generational
wealth
management
Why individuals / families consider setting up a FO…

5
Major Domus / Majordomo
In ancient Rome, this was ”the
highest person of a household
staff, a head servant who acts
on behalf of the owner of a
large or significant residence.”
Emergence of Trusts
Developed as an important
tool for inter-generational
wealth transfer in the UK in the
12th century during the time of
the crusades.
First Formal Family Offices
Industrialists generated
significant wealth during the
industrial revolution and
needed new ways to manage
their wealth and businesses
(e.g., House of Morgan (1838)
/ Rockefeller family office
(1882).
Modern Family Offices
Emergence of MFOs (e.g,
Rockefeller Capital
Management), the digital
revolution, globalization, the
rise of Asia and many other
trends lead to a
professionalization and
diversification of the FO sector
1ST WAVE 2ND WAVE 3RD WAVE 4TH WAVE
The evolution of the modern family office

SFO MFO
Massive transfer
of wealth
Rise of a new
Next Generation
Professionalizing FO operations &
governance
Rise of ESG & impact-driven
investments
Rise of a cohesive, purpose-driven
asset allocation
Changing family dynamics & proactive
succession planning
Increased transparency & public
visibility of FO
Rise of new & hybrid
forms of FOs
Digital transformation of the
family office
6
9 emerging trends in the 4th wave of family offices

Health and well-being, education, support in personal
development, crisis support
Family unity, healthy relationships, family governance
Leadership, strategy, governance, transformation and
innovation
FB as a force for good, philanthropy, social impact, CSR,
collective impact
Capable, well-educated and emotionally connected
owners, ownership governance
To ensure multi-generational unity and success and a lasting positive impact on the world, families need
to protect and nurture their total family wealth and manage complexities in the family enterprise system.
Adapted and extended from the CFEG framework
Managing Total Family Wealth Across Generations

Family office that has been set
up by one family to take care of
their specific needs
A family office that is set up to
simultaneously serve multiple,
typically unrelated, families
Uberization of the family
office! An ecosystem-type
approach where the needs
of the family are served by
a network of providers,
and where they do not
need to “own” everything
themselves.
SFO
Single
“Multi” Family Office
Closed,
family-owned
MFO
Dependent,
commercial
MFO
Independent,
commercial
MFO
Started by, and serves
one Family (or one
branch within a wider
family)
Started by, and serves
multiple (or all)
branches of a wider
family
Started by
multiple families,
serving their
needs,
exclusively
Started by a
bank, lawyer,
etc. to serve
multiple families
Started by one
family (or
professionals)
which evolved to
serve multiple
families.
SINGLE FAMILY
OFFICE (SFO)
MULTI FAMILY
OFFICE (MFO)
HYBRID / VIRTUAL
FAMILY OFFICE
8
Fundamental family office archetypes

Total family wealth
Costs
Family complexity (size, geographic proximity)
Asset complexity (assets together, dispersed, liquidity)
Desire / need for customized services
Desire to establish a new “hub” for the family (e.g., after a liquidity event)
Confidentiality and risk management
9
Factors to consider when deciding on the FO structure

• Little differentiation between F-B-O
• Central position of controlling owner
• Small family
• Leadership & governance dictated
by founder / owner
• Need to improved governance
• Less dependency on one person,
but increased complexity
• Increased risk of conflicts (between
siblings, cousins, branches, …)
• Large, complex family structure
• Diversified portfolio of activities
• Maximum complexity
• Need for a family office to
manage the system
Founder / controlling owner stage Evolving family business stage Large / dynastic family stage
• Most likely a pure investment office
(at least in the beginning)
• Potentially a few additional custom
services, depending on the needs
of the family (e.g., concierge)
• Investment office with mandate to slowly
start building a portfolio of assets
• Supporting the family with specific needs
(e.g., education of NxG, governance)
• Some additional custom services
• Manage the family’s portfolio of
assets
• Support the family with various
governance roles
• Support the family system
• Individual development
CONEXTUAL
FACTORS
CONSIDERATIONS
FOR
THE
FO
10
O
F
B
O
F B
Family offices take on different forms and shapes

“A Family Enterprise Ecosystem is
a dynamic and evolving system
that includes all aspects related to
your family, the businesses and
other assets that your family
owns, the way in which you govern
the family, ownership, businesses
& wealth, as well as your role in
society and impact on the
environment.”
“Total family wealth encompasses
human, social, financial,
reputational, intellectual, and other
forms of capital, representing the
overall wealth of a family enterprise
ecosystem beyond its financial
means.”
“A family office is a more or less
formal and constantly evolving
organization or private office
dedicated to one or more wealthy
families with the mandate of
managing their human, social and
financial capital, as well as other
affairs in the family enterprise
ecosystem, with the objective of
continuing the family heritage for
the generations to come.”
11
Key terminologies that define our work on FOs
Family Enterprise Ecosystem Total Family Wealth Family Office

Introducing the
Family Office
Navigator
In partnership with
CFEG and FBN

ü Increasing demand and attention on family offices.
ü Continued confusion around what a family office really is (or not).
ü Families being lost and confused when navigating the jungle
of family office service providers.
ü Most books / tools focus on professionals or family members
with experience and less on the broader family.
We want to empower families and help them
drive the process and take the right decisions.
13
Our motivation to create the Family Office Navigator

Family
Enterprise
Navigator
December 1, 2023
IMD & CFEG, in partnership with FBN
Published Dec 1, 2020
IMD & Wise
(scheduled for 2026)
14
FON as part of a bigger plan…

1 Navigator
6 Chapters
17 activities
& 20 trade-offs
Insights from 50 case
interviews with SFO
principals
15
The Family Office Navigator is more than a book…

© Peter Vogel, IMD. Please do not reproduce without explicit permission. 16
The Navigator as a simple tool to guide conversations

Upon completing the Family Office Navigator, you will have:
ü understood the critical role of family offices within your family enterprise
ecosystem.
ü explored the underlying motivations and aspirations driving your family
office journey.
ü crafted a well-defined purpose for your family office, covering both
financial and non-financial objectives.
ü determined the key activities and services of your family office.
ü chosen the appropriate resources and structures, while establishing
vigilant oversight and sound governance.
ü acquired the knowledge and confidence to launch a new family office or
to redefine the course of your existing one.
Value Proposition of the Navigator

Making of the Navigator…(2019 – 2023)
Working on Miro as a team
Phase 1: Brainstorming / Creation of Concepts
(2019 -2020)
Phase 2: Formation of Team, Prototyping and Beta Testing
(2020 -2021)

Making of the Navigator…(2019 – 2023)
Phase 3: Implementation
(2021 -2023)
Phase 4: Launch & Post-Launch
(2023+)
In the book stores as
of December 1
Fundraiser campaign Dec
1-25: donations of royalties
to the Bern Center for
Precision Medicine
What’s next?
日本語中国人
Español Français Português

20
• www.imd.org/fon
• Tools, frameworks, activities are freely available along with the book
How you can use the Family Office Navigator

"The family office journey is exciting
and also full of pitfalls along the way.
The Family Office Navigator and its
fun, hands-on activities provide
practical tools any family can apply to
their effort in setting up or re-vamping
their family office."
Alexandre Van Damme, Chairman of
Patrinvest
"The Family Office Navigator is an indispensable
guide for business-owning families at all stages of
evolution, aiding in refining strategies and
establishing family office structures to think and
act beyond the legacy business."
Farhad Forbes, Co-Chairman of Forbes
Marshall and Chairman of FBN International
“The Family Office Navigator provides
valuable insights about how family offices
support the broader Family Enterprise
Ecosystem. A must-read for all enterprising
families.”
Sara Hamilton, Founder and Board Chair,
Family Office Exchange
"The Family Office Navigator is a profound
guide on tailoring family offices. Even with
our century-long legacy, we rely on this
book for future evolution."
Kazuto Fukuhara, Principal and Deputy
CEO of the Fukuhara Group
“The Family Office Navigator is the breakthrough book
of its domain. It’s a must-read practical guide for
families on their journey of setting up or redesigning
their family office and an indispensable reference book
for professionals in the domain.”
Alexander Osterwalder, Co-founder of Strategyzer
and award-winning author of Business Model
Generation
“The Family Office Navigator is a truly
unique and engaging book by thought
leaders in the family office field. It is a
definite must read for all families who wish
to establish a family office or wish to
rethink their existing family office strategy.
It provides practical, easy to use and
insightful tools that can be immediately
implemented in your
family office activities.“
Dino Tan (Senior Vice President & Head
of Family Business Division, Singapore
Economic Development Board)
“A practical and user-friendly tool for
families and their advisors who wish to set
up or redesign the family office. The
Navigator guides and engages readers with
step-by-step ideas and strategic processes
– all in a playful way.”
Judy Green, PhD. President of the Family
Firm Institute
"An indispensable compass for families navigating the complex
world of wealth management. 'The Family Office Navigator' is
your guide to shaping a lasting legacy, addressing both
financial and non-financial aspects. A must-read for those
committed to securing their family's future."
Susana Gallardo, President of the Board of the Gallardo
Family Group and co-president of the Family Office
Community of FBN
“The Family Office Navigator is your quick-
start, hands-on guide to inspire wealth
creators, their advisors, and operators to
shape their family office to reflect their needs.
It is both educational and actionable, making it
a perfect companion for any family looking for
guidance during the setup of a new family
office or during the process of transforming an
existing one. Written for the layperson, this
book is easy to read, full of visuals and helpful
templates, and yet grapples with advanced
family office topics. This will be a fantastic
addition to your library.”
Kirby Rosplock, PhD, CEO- Tamarind
Partners and Tamarind Learning
“A highly valuable and very much needed tool to
demystify different types of Family Offices and
supporting families and their advisors to define the
purpose, develop structures and implement
governance that are customized to the needs of one
family. This makes the Family Office Navigator so
valuable and unique.“
Peter Englisch, Partner, Global Family Business
and EMEA Entrepreneurial & Private Business
Leader bei PwC
“There is too much advice on what to do to
create an effective family office, but very
little about how to make it happen. "The
Navigator" is a new kind of reader—a "do-
book" that leads a family through the actions
they can take together to start, build, and
continually redefine their family office. While
most guides focus exclusively on financial
elements, this one takes a more holistic view
of total family wealth, including essential
non-financial elements. It's an essential
guide for every business family as they
transition from their legacy business to a
portfolio of family enterprises.”
Dennis Jaffe, Advisor to enterprising
families and author of “Wealth 3.0: The
Future of Family Wealth Advising”
"The Family Office Navigator is not only a
required reading for those thinking of or in the process
of setting up a family office, but also those families
who've already set one up. The Navigator gives a clear
and detailed explanation of the best practices for any
family offices looking to run their organisation with
professionalism and success."
David Bain, Founder and Publisher of Family Capital
21
What people have to say about the Navigator

Prof. Dr. Peter Vogel
Director Global Family Business Center
IMD Business School
peter.vogel@imd.org
linkedin.com/in/vogelpeter
Let’s embark on the FO journey together!

Family Office Navigator

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