Starting or creating a family office
What Should Happen When Family Members Disagree With the Office Executive?
Short answer. The family should use a defined process to hear the concern, check it against the executive's agreed responsibilities, and make a decision through the designated supervisor or governing body. Record the outcome, communicate it clearly, and update the office's rules if the disagreement exposes a recurring gap.
When family members disagree with the office executive, they should bring the issue to the designated supervisor and follow a process the family has agreed in advance. A clear path protects the working relationship and keeps each disagreement from turning into a separate set of instructions.
Clarify the Issue and the Decision Owner
Start by describing the specific decision or conduct in question. Check the executive's job description, authority limits, and relevant office policies. Some disagreements concern a decision the executive can make; others involve a matter reserved for family approval. The supervisor should identify who has authority to resolve it and whether the executive needs to pause action while the matter is reviewed.
Do not let several relatives direct the executive independently. Ask family members to share their views through the agreed channel, and have the supervisor communicate the decision. A written governance process can specify roles, approval rights, and how disputes are handled. The supervisor's role should be clear before a conflict arises.
Hear Both Sides and Document the Result
The supervisor should give the executive and relevant family members a fair chance to explain their understanding. Separate facts from assumptions, review any prior approvals or written instructions, and identify whether the issue is about performance, priorities, or authority. If the disagreement concerns a specialized investment, legal, or tax matter, the family can seek appropriate professional input. Talk with your attorney or CPA when legal or tax specifics matter.
Record the decision, the reason for it, and any follow-up actions. Communicate the outcome to those who need to know, while respecting confidentiality. If the executive is expected to change course, explain what is expected and who will review the change. If a family member's request falls outside the office's scope, the supervisor can explain the boundary and refer the request to the proper family process.
Address Patterns, Not Only Incidents
A repeated disagreement may point to unclear responsibilities, conflicting family priorities, or expectations that were never agreed. Review the executive's job description and the office's performance goals. Update those documents if the family wants to change the role or the measures used to assess it.
When the disagreement is serious or remains unresolved, use a neutral adviser or a family governance group to facilitate the discussion. An advisory board can provide outside counsel on strategy or management, while the designated supervisor retains the authority assigned by the family. Keep the process consistent, and make any change to the executive's authority or employment terms through the appropriate formal steps. That gives the family a way to disagree without undermining the office's ability to operate.
These executives meet quarterly or annually to discuss strategy, management, and any important issues that the Chairman (or Chairwoman) of the Board would like outside input on.
Sources: How to Start a Family Office, The Single Family Office. Informational only, not financial, legal or tax advice.