Keeping Confidences About Family Wealth

As a family business leader, you're probably curious about what traits you need to excel in your role. There are many opinions on this topic, but a recent project provides some concrete answers.

Kent Rhodes and Doug Gray, Ph.D. developed and validated a 360 assessment process called Assess Next Gen, LLC, specifically for next generation family business leaders. They analyzed the data and determined the top 50 items that are essential for success.

And what did they find?

The number one strength, or Career Catalyst, for family business leaders is Item 13 in the survey: "Keeps confidences about family business wealth."

Why is this so important?

For family businesses, confidentiality is crucial, especially when it comes to wealth. Keeping private information about your family's financial status can help maintain trust, prevent conflicts, and preserve the family's reputation.

So, on a scale of 1-10, how well does your family business keep confidences about family wealth?

If you're not sure, here are some quick thoughts about how to apply this finding to your family enterprise or family business consulting:

First, identify the key people in your family business who need to know confidential information about your wealth. This might include your top executives, financial advisors and other consultants, or family members who are involved in decision-making. And it may not. The key is to clarify who these people are.

Second, establish clear guidelines for how to handle confidential information. This might involve creating a formal policy that outlines who has access to what information, when and how it should be shared, and what consequences will result if the policy is violated.

Finally, make sure that everyone in your family business is aware of the importance of confidentiality. Provide training and education to your team members, so they understand the risks and benefits of maintaining confidentiality.

If you're interested in learning more about Assess Next Gen and the top 50 items for family business leaders, visit www.assessnextgen.com.