Roelf Odendaal, Business Executive at Boston, recently spoke at the 9th Annual Cross-Border Considerations for Advisors Conference, presented by the Tax Faculty and LuciaDeKlein.
Roelf shared insights on Governance and Transparency within Family Structures, highlighting best practices and practical approaches for advisors working with complex family arrangements.
Now in its 9th year, the conference has become an industry institution — consistently providing enormous value to advisors and contributing to thought leadership within the broader financial services and tax advisory sector.
THE POWER OF OPENNESS – How Transparency Shapes the Rising Generation of Family Leaders
For families of wealth, passing on capital, control, and responsibility is the ultimate test of legacy. Sound financial management and risk management discipline are crucial, but they’re not enough on their own. What really makes the difference is often overlooked: transparency. Governance provides the structure, but transparency is what brings it to life. It’s the catalyst that engages the next generation; helping them move beyond inheritance to actively grow and strengthen the family’s wealth.
Beyond the Balance Sheet: Governance as a Foundation
At its simplest, governance is about how decisions are made. It usually plays out on two tracks:
- Family Governance – the values, purpose, and communication that guide how the family itself operates. A family constitution often underpins this, creating a shared moral contract that promotes unity.
- Corporate Governance – the more formal structures that oversee family businesses or investments, ensuring accountability and compliance. In many cases, these are statutory requirements.
Both are vital. But governance only becomes truly effective when it’s paired with openness. Transparency shifts governance from being a set of rules to being a collaborative platform that encourages participation, dialogue, and growth.
Unlocking Potential: Transparency as the Ultimate Empowerment Tool
Keeping the next generation in the dark rarely ends well. It leaves them unprepared, anxious, and disconnected. By contrast, transparency provides the right environment for growth and confidence:
- Building Competence: Involving the next generation in reporting, strategy discussions, and risk reviews demystifies complexity. It’s like a practical MBA delivered within the family.
- Fostering Ownership: When they understand the story behind the wealth, its origins, struggles, and purpose, they see themselves as stewards, not just beneficiaries.
- Creating Leaders: Openness gives younger members the space to ask questions, challenge assumptions, and learn directly from experienced leaders. That’s how confident, decisive leadership is built.
- Securing Continuity: Succession isn’t a single handover moment; it’s a process. Transparency ensures that the process is smooth and equips the next generation to carry the legacy forward.
Overcoming the Barriers
Families often resist openness, fearing it could lead to entitlement, conflict, or overwhelm. Ironically, secrecy usually creates those very problems. Excluding younger members leaves them unprepared, while inclusion nurtures responsibility. The research is clear: families that embrace open communication and shared purpose are the ones most likely to achieve successful wealth transfer.
A Practical Toolkit for Transparent Legacy Building
Creating a culture of transparency doesn’t just happen. It requires a clear framework and consistent practice:
1. Family Constitution: A living document that sets out values, vision, and communication protocols. It informs on who sees what, when, and how.
2. Inclusive Meetings: Regular meetings and reviews on risk, investments, and financials. When reports are shared in advance and questions encouraged, meetings become classrooms as much as oversight forums.
3. Mentorship Through Reporting: Reports shouldn’t just present numbers. They should tell the story behind performance and risk, teaching the rising generation how to interpret and act on information.
4. Trusted Advisors: Independent advisers who collaborate (the “Wealth 3.0” model) act as both technical experts and mentors, guiding families in a way that’s aligned with their values.
From Heirs to Architects of the Future
Transparency is one of the best investments a family can make. It turns succession into empowerment, shifting the next generation from passive heirs to active architects of the family’s future. They don’t just inherit, they lead, build, and protect the legacy.
At Boston Multi Family Office, we help families embed governance and fiduciary structures that endure across generations. With technical rigour and a deep appreciation for family legacy, we ensure wealth isn’t only preserved but continues to grow.
For further information, please contact Roelf Odendaal at rodendaal@bostonmfo.com.
References and reading list:
· Aronoff, C. & Ward, J. (2011). Family Business Governance: Maximizing Family and Business Potential. Palgrave Macmillan.
· Gersick, K.E., Davis, J.A., Hampton, M.M., & Lansberg, I. (1997). Generation to Generation: Life Cycles of the Family Business. Harvard Business School Press.
· Gersick, K.E. & Feliu, N. (2014). “Governing the Family Enterprise: Practices, Performance, and Research.” Cambridge Institute for Family Enterprise.
· Jaffe, D.T. (2013). Borrowed from Your Grandchildren: The Evolution of 100-Year Family Enterprises. Wiley.
· Jaffe, D.T. (2018). “Resilient Dynasties: Succession, Governance, and the Family Enterprise.” Family Business Review.
· Lansberg, I. (1999). Succeeding Generations: Realising the Dream of Families in Business. Harvard Business School Press.
· Ward, J.L. (2004). Perpetuating the Family Business: 50 Lessons Learned from Long-Lasting, Successful Families in Business. Palgrave Macmillan.
· Ward, J.L. (2011). Keeping the Family Business Healthy. Palgrave Macmillan.