“Succession planning should include both genders and this can be done with clear roles and expectations,” Elaine King, an international financial planner and writer who is the founder and president of the Miami-based Latin America-focused Family and Money Matters Institute and will be leading a roundtable at the marcus evans Latin Private Wealth Management Summit* in Cancun, Mexico, in October, says in this interview with marcus evans.**
Are women different from men when it comes to managing money, leading or governing?
As a female family business adviser, I get asked quite often if women are better than men managing their finances. And what comes to mind are the wonderful, impactful contributions that have been made by female leaders whom I admire, such as Melinda Gates, Angela Merkel, Sheryl Sandberg, Tory Burch and Diane von Furstenberg. So it is hard to take a side, because both genders have contributed to and impacted the economy in a positive way. However, every business owner should focus on the proven growing trend today, which is that 70 per cent of family businesses are influenced internally by female leadership or will have female leaders in their family enterprises in the near future. It is fascinating to just think about the legacy they will leave behind.
For this trend, business owners must be aware of, adapt and implement a plan to attract the best female members of their family and community. They should be aware of what they value, adapt to their greatest impact, and implement an environment where everyone can thrive.
What impact will this have in the future?
The greatest impact is on strategic planning, long-term sustainability and relationship building, which at the end of the day ensure the legacy of the business and the union of the family.
Numerous studies have shown that having more women in leadership roles leads to better financial and all-around performance. Women leaders tend to increasingly focus on corporate governance, corporate responsibility, talent dynamics and market acuity.
The impact they create is one where success is measured not only by financial capital but also by human capital. They ensure actions are impactful for the benefit of financial growth but also for the community, improving the quality of life.
The largest and oldest family businesses in the world are moving women further into leadership roles than other organisations are. Why is this important? What role can family offices play?
This is important because family businesses as a whole create an estimated 70 to 90 per cent of the gross world product (GWP), and between 50 and 80 per cent of jobs in most countries.
Family offices must focus on inclusiveness, sustainability, longevity and growth. They have to keep the best interests of the family and business in mind at all times, to make sure the business is prosperous for future generations.
Family businesses should invest in ensuring all the women in the family are educated to follow their passion, in governance, and most importantly financial planning. This will guarantee the necessary skills in leading an enterprise or a country, and continue to inspire other women to lead.
Some businesses skip a generation and name the next generation in the succession plan, when in fact the mother can play an important role.
*The Latin Private Wealth Management Summit Fall 2017, to be held at the Ritz-Carlton Cancun on October 9-10, is a forum that will bring together leaders from Latin America’s leading single and multi-family offices and service providers. The summit’s programme includes presentations on opportunities in Latin America and discussions on the challenges of structuring a family office in the continent, on common reporting standards, on the US Federal Account Tax Compliance Act (FATCA), on some of the best practices, and on the role of technology.
For more information please send an email to firstname.lastname@example.org or visit the event website at http://events.marcusevans-events.com/latin-pwm-emerging-markets/.
**The republication of this interview has been authorised by marcus evans, a global media, corporate marketing and information company.