When Good Intentions Can Cause Misalignment

In a family office when the family is both the owner and the client, it is essential to have structure in place to make sure that the owners are focused on the most important decisions while also clearly distributing other decision-making power. A good way to ensure that decision-making doesn’t get messy in a family office is to use the Four-Room Model. As Banyan’s Ben Francois explains in this video, owners must have a space where they, alone, can make important decisions, such as how they want to design the family office, how they will fund it, what kinds of decisions can be made in other rooms.