Family Office Association (FOA) welcomes you to our weekly Blog, dedicated to our members and the greater family office community seeking education and insight into the ever-changing family office landscape.

To manage a family office effectively, setting clear goals and tracking progress over time is essential. Creating a 12-month calendar can provide structure and direction, allowing you to prioritize tasks and measure outcomes. In this blog, we will outline the eight steps involved in developing a 12-month calendar for your family’s goals and results. 

1. Define the Objective

Start by determining the overall objective for the year. This objective should align with your family’s values and long-term vision. Take the time to engage with your family members in open discussions to better understand their aspirations and what they hope to achieve collectively. By involving all stakeholders, you can ensure that the objective is inclusive and representative of everyone’s interests. For example, if your family’s goal is to grow the family’s wealth, the objective could be to achieve a certain percentage increase in your total investment portfolio or to explore new investment opportunities that align with your family’s values. 

2. Identify Key Focus Areas

Once the overall objective is defined, identify the key areas that need attention to achieve it. These focus areas could include investment management, financial education, business development, philanthropy, family governance, and succession planning. Reflect on your family’s unique circumstances and consider the priorities and challenges specific to your family’s situation. You will want to consider family members’ different needs and interests to ensure a well-rounded approach. Encourage open dialogue and collaboration to identify the areas that require the most focus and attention. 

3. Set Measurable Goals

Set distinct and measurable goals within each focus area. It is crucial to make these goals attainable yet challenging enough to drive progress and growth. Engage with each family member individually to understand their personal goals within each area. Traditional metrics, such as revenue growth or investment returns, can be combined with non-financial metrics to capture a broader definition of success, such as fostering family unity or social impact. By combining quantitative and qualitative goals, you can create a holistic approach that reflects your family’s diverse needs and ambitions. 

4. Establish Action Steps 

Once the goals are defined, break them down into actionable steps. This means creating a clear timeline for each step, assigning responsibilities, and allocating resources accordingly. This will help ensure that progress is made consistently throughout the year. Collaborating with family members and key stakeholders is essential to determine the necessary actions and establish accountability structures. Each action step should have a clear purpose and be aligned with the overall objective. Of course, regularly communicate and provide updates to ensure everyone remains on the same page and motivated to achieve the desired outcomes. 

5. Develop KPIs (Key Performance Indicators)

Alongside each goal, establish specific KPIs to track progress. These metrics should align with a singular goal and provide quantifiable data demonstrating success or highlighting improvement areas. Consider both leading indicators (predictive metrics) and lagging indicators (outcome-based metrics) to provide a holistic view of progress. You will want to regularly measure and evaluate these KPIs to gauge progress towards the desired results, as well as communicate KPIs to family members and stakeholders to share progress, celebrate milestones, and address any concerns or challenges. 

6. Allocate Resources

Your next step is determining the resources required to achieve the goals and plan accordingly. This may include financial resources, personnel, or external expertise. By allocating resources effectively, you can ensure that each step in the action plan is adequately supported. Evaluate the skills and expertise within your family office to determine if additional support or external partners are required. You can even consider partnering with financial advisors, legal experts, or consultants who can provide valuable insights and guidance in achieving your family’s goals. Like every step, regularly review resource allocation to ensure optimal use and make necessary adjustments as the year progresses. 

7. Monitoring and Reviewing Progress

Then, review the progress made towards the goals and revisit the 12-month calendar – you can’t change what you can’t measure. This allows for adjustments if necessary and enables you to stay on track toward achieving the desired results. It’s recommended to hold regular family office meetings or check-ins to assess progress, share updates, and address emerging issues. Create an open and transparent environment where family members feel comfortable discussing challenges or suggesting improvements. Also, consider leveraging technology solutions or software tools to streamline progress tracking and reporting, making monitoring and reviewing progress easier. 

8. Reflecting and Refining

At the end of the 12 months, take the time to reflect on the outcomes and lessons learned. Evaluate the effectiveness of the 12-month calendar as a tool for achieving the family’s goals, identifying areas for improvement as well as seeking feedback from family members and key stakeholders to gain different perspectives. You will also want to comprehensively analyze achievements against set objectives, KPIs, and any unexpected challenges or successes. Make any necessary refinements to the goals, action steps, or timeline for the upcoming year, and use the reflection process as an opportunity for growth and continuous improvement.

By following this comprehensive 12-month calendar approach, you can ensure that your family office remains strategic, efficient, and goal-oriented. It allows for a systematic and structured approach to managing your family’s wealth, preserving its legacy, and achieving long-term success. With clear goals, actionable steps, ongoing monitoring, and periodic evaluation, you can navigate the complexities of wealth management and make informed decisions to steer your family toward a prosperous future.  If you have further questions or wish to enhance your family office, contact the team at Family Office Association.