Family Office – The Phases of Business Planning
The business plan should also outline qualitative goals such as:
- Details of the current wealth structure and intended asset allocation.
- A review process for evaluating the achievement of the family office’s goals.
- An employee hiring plan and compensation model (employee stock option plan or other).
- Contingency plans.
- Investment guidelines, with the expectations regarding investment returns and benchmarks once the CIO is on board.
The process for setting up a family office
The typical process for establishing a family office includes the following phases: scoping, design, build, test and deploy. Stringent and professional project management is key, and should involve external advisers with the appropriate know-how to assist the family throughout the entire process.
The Phases of Business Planning
Below are details of the two most critical phases described above: scoping study and design.
|Objectives||To obtain authorization from family’s senior management to proceed with the program to establish a family office.||To design the structure and operational and functional architecture of the family office.|
|Deliverables||Definition of the business model to be adopted by the family office.||Develop detailed operating model.|
|Detailed scoping study report covering all the outlined objectives to facilitate go/no-go decision making.||Functional, IT and data requirements documentation and architecture for family office infrastructure.|
|Detailed project plan for next phase||Finalize business case.|
Scoping Study – Proposed Approach
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This entry was posted on 08/13/2015 by beckersbest. It was filed under business plan, Family Office and was tagged with assesment, business planning, design, family office, Management, objectives, operating model, process, study, testing.