Family Office Sherpa Podcast Episode 21 - Don't Create an Investment Office "Echo Chamber"

TOne of the mistakes made by offices is creating an "echo chamber" with no feedback or alternative view.

Think about your office - is there anyone that can assist or question the main decision maker? Are there others that can provide thoughtful, constructive or contrarian ideas?

With family offices being so flat in structure, the CIO can become isolated if they have no-one in the office to discuss decisions. Have I looked at everything? Does this make sense? Are there better options?

What an echo chamber can create:

·       Lack of benchmarks

·       Group think

·       Staff turnover and uncertainty

·       Missed opportunities as you may not be looking in the right space

·       Challenging succession planning

How I have seen offices reduce this risk:

·       External Investment Committee Member - strong and with experience, constructive feedback (not to create a bottle neck).

·       Use counterparties - strategists, specialists, global

·       Talk to other offices - not just those that look like yours.

·       Look for expertise outside the office

·       Review past decisions - on exit or pre-determined cadence.

·       Get your data management sorted - you can get a lot of insights by overlaying with research.

·       Have guests attend you IC meeting

Get out of the of office, get some outside views.

For more insights into family offices and their investments, operations and technology, subscribe to the Sherpa newsletter at:  hallroad.com.au.

Cheers

Shaun.

“Hall Road Investments Pty Ltd is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Capital Pty Ltd (AFSL No. 499882). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors”