Critical Drivers Of Success: The ability of virtual family offices to optimize the financial world of their clients is predicated on what they are able to deliver, but also on three critical drivers … the human element, the cohesive team and systematic processes.
The human element is the emotional and psychological aspects of the advisor/client relationship. Each driver has multiple indispensible components referred to as essentials. Three prevalent essentials of the human element are:
The human element is where financial professionals effectually differentiate themselves. As just about all financial and legal solutions are being commoditized, proficiency when it comes to the human element enables financial professionals to structure virtual family offices for the affluent.
The big difference between a virtual family office and many professionals, who could conceivably refer other professionals, is that the virtual family office brings together an elite group of specialists on an as-needed basis who work collaboratively. It is a cohesive team. A virtual family office is able to deliver a wide range of state-of-the-art expertise because they structure (many times idiosyncratic) cohesive teams for each affluent client. Three essentials of a cohesive team are:
Most of the experts of each cohesive team are external. Strategic outsourcing makes it all possible. Still, the financial professional is responsible for forming the cohesive team as well as managing it.
So often professionals deal with their affluent clients in a haphazard manner. Virtual family offices operate so effectively because of systematic processes. With a virtual family office, all solutions are intricately coordinated and synergies extracted to produce superior results. Three essentials of critical systematic processes:
A key methodology of virtual family offices is stress testing. By carefully assessing where affluent clients are, it is then possible to take steps to optimize their financial worlds.
From Wealth Management To Virtual Family Offices
The appeal of family offices to the wealthy, from individuals with a million or two all the way up to the super-rich (with a net worth of $500 million or more), cannot be overstated. For financial professionals who want to build high-quality, highly profitable practices with the affluent, the present and future is their ability to provide virtual family offices.
