Family Leadership Strategies

23 2 Special considerations Unlike other organizations, family enterprises - whether they are complex multi-national entities or modest family-owned investment companies - face unique challenges. In the context of leadership development and succession, three such head-winds merit discussion: the demand for asset growth, sibling/cousin interactions, and self-awareness. The demand for multi-generational wealth creation Families tend to grow at a faster rate than their wealth over time. Births exceed deaths and as a result family consumption or spending tends to grow at an increasing rate. This is exacerbated by inflation, which reduces spending power year after year, and taxes, which take their toll. To accommodate future generations and overcome significant wealth depletion, new family leaders must be able to steward (not lose) existing wealth, while also creating new sources of wealth.