Family offices face a unique challenge when it comes to integrating the next generation of family members. These individuals bring a fresh perspective and innovative ideas to the table, but they may also have different priorities and values than the older generations. To successfully integrate the next generation, family offices must find ways to bridge these gaps and leverage the strengths of each generation.

One of the key considerations when integrating the next generation is understanding their priorities and values. A 2020 Deloitte Millennial Survey reported that Millennials and Gen Zs want “leaders to show a commitment to making the world a better place for everyone and demonstrating a purpose beyond profit.” This indicates that the next generation is highly focused on social responsibility and making a positive impact on the world. Family offices must take this into account and find ways to incorporate these values into their operations.

Another important consideration is the entrepreneurial mindset of the next generation. According to a survey conducted by leading web hosting company GoDaddy, Millennials are the most entrepreneurial-minded generation over the past century, with 56% placing entrepreneurship as a goal, compared to 43% of Gen-Xers and just 21% of Baby Boomers. Family offices can leverage this entrepreneurial spirit by creating opportunities for the next generation to pursue their own ventures within the framework of the family office.

Communication is also critical when integrating the next generation. Family offices should provide opportunities for the next generation to participate in decision-making processes and offer feedback on operations. This not only helps to build trust and foster a sense of ownership, but it also ensures that the family office is benefiting from the fresh ideas and perspectives of the next generation.

Mentorship is another important component of successful integration. Older generations should take an active role in mentoring and guiding the next generation, sharing their knowledge and experience while also providing space for the next generation to explore their own ideas and initiatives.

Ultimately, successful integration of the next generation requires a willingness to embrace change and a commitment to working together. By taking the time to understand the priorities and values of the next generation, leveraging their entrepreneurial spirit, communicating openly, and providing mentorship and guidance, family offices can ensure a smooth transition and position themselves for long-term success.