Starting or creating a family office
How Can a Family Avoid Hiring a Senior Executive Before the Role Is Clearly Defined?
Short answer. Write down the office's needs, the position's primary responsibilities, its authority, and how success will be assessed before recruiting. Check that the role fills a real gap and does not duplicate existing skills. If the family cannot explain what the executive will own, clarify the work before opening the search.
A family can avoid hiring a senior executive too early by defining the work, authority, and expected results before discussing candidates. A strong résumé or trusted introduction does not establish that the office has a role worth filling.
Identify the Gap the Hire Must Fill
List the office's current responsibilities and show who handles each one, including family members and outside advisers. Mark work that is delayed, duplicated, or dependent on one person. Then identify the skill or capacity the office lacks. This helps distinguish a genuine need from an appealing candidate in search of a position.
Be direct about the expected benefit. A hire may bring investment expertise, improve reporting, coordinate the family's advisers, or reduce a meaningful burden on relatives. If the family cannot name the problem the role will solve, continue planning before recruiting. The workload assessment question can help test whether the office has enough ongoing work to support the position.
Define Responsibilities and Authority
Prepare a job description that identifies the position's main duties, reporting line, authority, and boundaries. State which decisions the executive can make, which require approval, and how priorities are set when family members make competing requests. Include the relationships the role will manage with relatives and staff, as well as outside providers.
Separate essential qualifications from skills that can be developed. In my experience, a specialist with expertise in a real office need may be a better choice than a generalist whose contribution is hard to specify. The talent search step can help align recruiting with the capabilities the office requires.
Set Measures Before Meeting Candidates
Agree on how the family will assess performance. Measures might include the completion and quality of defined processes, timely reporting, or effective coordination, depending on the work. Keep expectations within the executive's control and identify who will review them. This gives interviewers a consistent standard and helps candidates understand the role.
Set the compensation range and confirm that the office can support the position as planned. The staff compensation estimator can help with preliminary compensation planning. Discuss legal and tax specifics with your attorney or CPA.
Use a Readiness Check Before Recruiting
Before opening a search, ask the family and key advisers to confirm agreement on the role's purpose, scope, and reporting line. Resolve differences about what the executive will own. If the position combines unrelated responsibilities, decide whether one person can take them all on or whether some work belongs with an outside provider.
A written role can change as the office evolves, but the first hire needs a clear starting point. Once responsibilities and authority are agreed, the family can compare candidates using evidence that relates directly to the job and avoid adding overhead without a defined need.
In my experience, it is better to hire a specialist and gradually expand that person's role to take on more general responsibilities.
Sources: The Single Family Office. Informational only, not financial, legal or tax advice.