Responsible family ownership does not require every member to become an investment professional.

A family member can rely responsibly on a family office without personally selecting investments or managing a portfolio. Similarly, they can draw on tax, legal, governance and other expertise through the family office without becoming specialists in those fields.

Consider a proposed investment that would tie up money held jointly by family members for several years. Investment professionals can assess the expected returns, risks and when the money would be available again. But even a financially attractive investment may be unsuitable given family members’ needs, existing commitments or ambitions for the next generation.

With advisers explaining what is financially workable, owners can help establish those priorities through the family’s agreed governance arrangements. What is the proposed investment intended to achieve? Who has authority over which decisions? What consequences could it have for family members? What changes would warrant reconsideration? An owner needs to understand the answers and their implications.

Professionals need room to exercise judgment within their agreed mandates. For that to work, family members need to respect the agreed boundaries of their own roles. Even when specialists do the technical work, owners must still be able to explain and stand behind their own decisions.