Insights
By: Lucy Birtwistle
Your future role in the family organisation? Start the conversation as soon as possible – Lucy Birtwistle
Insights from the Stonehage Fleming Next Gen programme 2023
As an international family office specialising in managing and protecting cross generational wealth, we are often asked about the right time to engage the next generation (next gen) about their future roles within the family organisation. The answer is “as soon as possible”, according to governance and succession specialist, Lucy Birtwistle.
“My advice is to begin that discussion as early as you can, not only with your parents but also with your siblings”, she told attendees at our annual Stonehage Fleming Next Generation Programme, taking place in our London offices this week.
Starting the conversation before any concrete decisions are made helps prevent assumptions which may preclude your fulfilling a meaningful role further down the line, explained Lucy, a Director within our Family Office team in the UK.
“I wonder how many of you think: ‘I'm not sure what I'm going to do, but I’m pretty sure my sibling or siblings really want a role so I will make plans to do other things’”, she asked the cohort of 18-22 year olds. “The worst scenarios I’ve seen are when next gen family members make life decisions based on assumptions – assuming there will be a role for them in the business, or that, as the oldest male, they will inherit the estate. When it transpires that the family has excellent non-family management of the business or chooses not to follow primogeniture anymore, it can be quite a shock and can cause unnecessary family disputes.”
The value of managing expectations applies whatever the type of family organisation, said Lucy. “We have talked about businesses, but the same is true of estates, private investment offices, charitable foundations or property portfolios. You should be asking the same questions about the potential role you would like to play. And ask them as early as possible.”
Furthermore, when considering their future participation, the next gen should consider roles outside the deployment of a family’s financial capital. “I'm not asking you to start asking about what future distributions you can look forward to,” said Lucy. “I am recommending conversations with your family about whether or not you might want to prepare yourself – be it through studies or work experience – for taking ownership of any part of your family’s legacy, be that social, cultural, intellectual or financial.”
Nevertheless, these conversations, cautioned Lucy, are not always easy to have. Because of this, the involvement of a third party like Lucy can be invaluable. “I often play the part of mediator, bringing people together to facilitate discussion. That means sitting with the family, asking questions and sharing stories of families that I have worked with previously. Sometimes it goes very smoothly. Others, I need to intervene to ensure that everyone has their say. I have even occasionally resorted to a ‘talking stick’. People can only speak if they are holding it. At the end of the day, it is all about making sure everyone has a voice, regardless of their age or seniority.”
Based in London, Lucy Birtwistle
is a Director in our Family Office team.
Find more content from Lucy below
Constitutions – applying a process to family governance (video)
Ask your clients ‘Why?’ The mechanics of defining purpose