From founders to future: The power of Family Office purpose

Let’s start with a hard truth: in our experience, most Family Offices don’t have a clearly defined purpose. And that absence, while understandable, can carry quiet but significant risks.

Purpose is the one thing that separates a thriving multigenerational enterprise from a disconnected structure with drifting priorities. Without it, even the best intentions can unravel.

What to consider?

• What is your Family Office really here to do?
  
• Does everyone involved (family, team, advisors) know what success looks like?
• Do the next generation understand the reason it exists and feel inspired to carry it forward?

These are big questions. With no easy or fast answers. But they may be the most critical questions a Family Office can ask, because everything else depends on the clarity they bring.

It's time to bring purpose to the forefront, not as a philosophical exercise or a nice-to-have, but as a practical tool that defines the difference between short-term survival and a legacy that lasts.

Purpose is a living, evolving articulation of why the Family Office exists and should incorporate the family's values, priorities and vision. And it’s different for every family and can be multi-faceted. It is not a slogan or a dusty paragraph in a legacy document. 

For some, it’s about preserving wealth. For others, it has more of a focus on philanthropy. Some define it as a platform for supporting future entrepreneurial ventures within the family.

Here’s one real-world, paraphrased, example:

“To protect and enhance our wealth, to pursue philanthropy and to ensure each generation understands and upholds the responsibilities of their inheritance.”

So, not only does the family place a strong emphasis on financial security, they also express a clear commitment to giving back to society and ensuring future generations understand the significance of their inheritance and the responsibility that comes with it, fostering family unity and long-term stewardship of family wealth.

Simple. Clear. Actionable.

It’s genuinely embraced and has become the guiding light for everything, from investment strategy to hiring, from governance to succession.

Now imagine a Chief Investment Officer in a Family Office without one; they invest in fossil fuels, unaware the family’s values centre around sustainability. Or a family member who expects access to capital, not knowing the Family Office is primarily focused on building capital for future generations and has a hard and fast “don't touch the capital” principle. Clarity of purpose avoids these collisions by clearly communicating the rules of engagement and the reasons behind them, making them explicit.

It also protects against mission creep. In an increasingly complex environment where family offices invest across geographies and asset classes, purpose acts as a north star. It helps teams focus. It reduces confusion. And it provides a clear framework for making tough calls.

In our experience, many Family Offices are navigating increasing complexity while still relying on instinct and precedent. But in a world that’s changing rapidly, that may not be enough for long term success.

Today’s Family Offices are more global and more visible than ever before. Investment strategies are no longer confined to domestic property or listed equities. They include private equity, private credit, hedge funds, venture capital – often with cross-border holdings and a mix of all the above.

At the same time, generational transition is accelerating. In many families, we’re now seeing three generations engaged in wealth conversations, from 70-year-old founders to 20-something grandchildren. And yet, the values, expectations and communication styles of those generations are often worlds apart. We find that purpose is the only thing that bridges that gap. 

Purpose creates alignment. It provides direction. It helps family members and the teams that support them understand not just what they’re doing, but why.

When a Family Office lacks a defined purpose, it’s not always obvious at first. But the impact becomes clear over time:

Family disputes: Purpose acts as a stabilising force. Without it, differing opinions on spending, risk, or direction can quickly lead to conflict.

Next-generation disengagement: Younger family members often don’t understand what the Family Office is for, or how it connects to their lives. Without that clarity, involvement becomes minimal or reluctant at best. The next generation is often values-driven, more globally aware and less willing to engage with something that feels directionless.

Misaligned strategy and investments: In the absence of purpose, investment strategies can become reactive or scattershot, missing opportunities or drifting away from core goals. In the worst-case scenario, a misaligned investment can open the door to reputational damage. 

Team turnover: Behind almost every successful office is a team of non-family professionals who manage everything from investments to reporting to operations. When a purpose is missing, that team is forced to fill in the gaps themselves. This leads to strategic drift, misaligned decisions, and eventually, staff turnover.

Family wealth dilution is real: As each generation grows, the financial needs expand. A well-articulated purpose can help families avoid fragmentation and ensure capital is preserved and grown intentionally.

In our experience, purpose also reduces the emotional strain around legacy conversations –  transforming difficult “what now?” moments into shared, forward-focused discussions.

So where do you begin? Based on our work with Family Offices globally, here are the most effective steps:

1. Engage the whole family: Carve out time to reflect as a family. What does success look like 10, 20 or even 50 years from now? What legacy do you want to leave? What principles should guide your decisions? Purpose shouldn’t be handed down – it should be co-created. That means engaging multiple generations, listening to diverse perspectives and capturing a shared vision.
2. Use experienced facilitators: Crucially, this isn’t a conversation to have around the dinner table. Independent facilitation creates a safe space for honest dialogue. External advisers can ask questions others won’t, and surface insights that would otherwise go unheard.
3. Capture the key ideas around purpose: Prepare a couple of different drafts and circulate them among the family. Ask for feedback on which elements resonate, what is missing and what could be refined. Regroup and refine, working together with the facilitator to come up with a purpose the whole family is aligned around.

When Family Offices do attempt to define their purpose, a few traps emerge. Chief among them: mistaking the founder’s perspective for the family’s. In many first-generation offices, what’s called a Family Office is, in reality, still a “Founder’s Office,” shaped by the instincts and preferences of the individual who built the wealth. The strategy, values and direction often live in their head. While that can work for a time, it rarely sets up the next generation for success.

Another risk is letting old purpose statements go stale. Families grow, views evolve and what mattered 10 years ago may no longer apply. Purpose isn’t a set-and-forget activity. It needs to be reviewed, discussed and reaffirmed, ideally on an annual basis.

It’s our belief that the families that thrive across generations aren’t the ones with the most capital. They’re the ones with the most clarity. And, in our next article, we’ll explore how that clarity of purpose can translate to an effective Family Office structure – and the new operating models that are emerging. But for now, we leave you with this question:

If your Family Office doesn’t have a purpose that is shared, documented, and lived, what is it building toward?

And what might change if you found the answer?

If you want to learn how we can help define your Family Office purpose, please contact Glen Frost or Ryan Smith, or visit our website for more information.'