Business people often talk about the “hard” skills of quantitative assessment and the “soft” skills of human behaviour.
In a family context, working to improve a family’s “soft” skills — the quality of their interactions — is the hardest task of all. It is easy to talk about the level of trust, the quality of communication, the ability of a family to make effective decisions together and so on. But what makes the greatest difference is a family’s ability to quantify and measure their Human Capital.
We create bespoke processes to enable a family to specifically assess and track the most important aspects of their Human Capital, including: effectiveness of family leadership, conflicting roles, ability to manage disagreements, effectiveness of family governance, likelihood of a successful transition, preparedness of the Next Generation, levels of trust, cross-generational affinity, alignment around the goal for the family’s wealth, effectiveness of communication and so forth.
Our approach begins with an anonymous 50 question survey. Each member of the family is invited to record their response — with total anonymity — to a series of questions about the family’s Human Capital. We focus on behavioural qualities within the family, such as trust, sincerity, openness, confidence, fairness and decision-making. Careful calibration of these questions yields a set of data points, which provides us with an accurate, independent and incontrovertible assessment of the family’s ability to undertake the process of a successful wealth transition.
This data is displayed as a set of bar charts, which point to the key elements of family interactions that need to be addressed. It is this data that enables a family to increase the likelihood of successfully passing on wealth to the next generation.