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Modern family offices have to navigate a complex landscape of diverse global asset types, multi-generational interests, potentially conflicting priorities, and increasingly complex regulatory structures.
While strategic leadership roles such as CEO and Chief Investment Officer have been cornerstones of successful family offices for years, we’ve recently seen another specialised C-suite role rapidly gaining importance in the sector: the Chief Operating Officer (COO).
No longer just an administrative function, the family office COO has become an indispensable integrator, crucial for the effective and resilient management of complex family enterprises.
Several converging trends explain the COO’s increasing importance within the family office.
Increasing complexity: Assets under management have grown, portfolios have diversified significantly into complex alternatives like private equity, venture capital, real estate, and direct investments, often spanning multiple jurisdictions.
Technological advancements: Implementing and managing sophisticated reporting systems, portfolio management tools, cybersecurity protocols, and communication platforms is now a core operational necessity, not an afterthought.
Regulatory scrutiny: Increased compliance requirements globally necessitate rigorous internal controls and dedicated oversight, which fall within the COO’s remit.
Ongoing professionalisation: Families are moving away from informal management styles towards structured corporate operations that ensure continuity beyond the first generation. Succession planning and governance are becoming key elements of the COO role as a result.
As a result, the COO role has evolved beyond traditional “back-office” administration into a strategic leadership position – connecting the dots between the investment engine, financial reporting, legal and tax functions, technology platforms, human resources, and the delivery of family services and governance support.
While the specifics differ from office to office, the modern family office COO typically oversees a broad range of critical functions, including:
To excel in this multifaceted role, the COO requires a unique blend of technical expertise and soft skills. Robust financial literacy and commercial acumen are essential, along with a deep understanding of operational management principles, especially where the role involves working with operating businesses to optimise profitability and growth. A degree of technical proficiency is important: COOs should be familiar with systems architecture, data management, and cybersecurity concepts. Project management capabilities and a solid grasp of risk management frameworks round out the key hard skills needed for success.
In terms of soft skills, leadership and communication abilities are paramount, as is high emotional intelligence, crucial to navigating complex family dynamics and managing diverse stakeholders (family members, internal staff, external advisors). Strong problem-solving skills and adaptability in the face of change are crucial, alongside strategic thinking and meticulous attention to detail. It should go without saying that discretion and unwavering trustworthiness are non-negotiable.
Perhaps most importantly, the COO needs to display an “integrator” mindset – the ability to understand the interconnections between functions, visualise how decisions in one area impact others, and foster collaboration across the entire office.
Implementing the COO role effectively comes with challenges. It’s crucial that the role is clearly defined, and in particular, that the relationship and boundaries between the COO and other C-level roles are structured in a way that avoids either overlap or gaps. COOs must also constantly balance strategic planning with hands-on execution and effectively manage change when implementing new systems or processes – which can be challenging within change-resistant family structures.
Finding individuals with the unique combination of operational expertise, technological savvy, financial acumen, and the high degree of emotional intelligence and discretion required for these roles can be exceptionally challenging.
At Victus Search, we specialise in recruiting niche roles for family offices. Our highly developed global network and discreet, personalised service allow us to identify and engage exceptional candidates who possess the precise skills and cultural fit needed, often reaching those who may not be actively seeking a move. To discuss your specific talent needs and learn how we can help you secure the right operational leadership for your family office, please contact us.
Whether you’re looking to fill a specialist role, or seeking the right position to deploy your unique skills and experience, the first step is to get in touch with one of our expert consultants.
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