Interest in family offices has surged over the past 15 years. Office structures range from formal entities with dedicated executives to informal setups within operating companies. Leaders of family-owned enterprises seek support at the intersection of family, assets and management, with succession planning anchoring lasting enterprises.

Whether you lead a multi-generational business or are a founder involving your children for the first time, planning for continuity brings unique priorities and challenges.

There is much to glean from successful families who have surrounded themselves by trusted advisors who work in partnership to ensure continuity and effective management of assets, while the family strives to preserve harmony, uphold values and cement a legacy.

Successful families rely on trusted advisors to ensure continuity and manage assets, while preserving harmony, values and legacy. As the United States faces an unprecedented generational wealth transfer, leaders must be ready to navigate transitions and guide their enterprises through change, whether assets are liquid or tied to businesses, real estate or other family holdings.

Here are six strategies for effective succession planning:

1. Review financial and legal frameworks

A solid foundation starts with financial and legal frameworks. Estate plans must be current, with clear fiduciary roles and mechanisms for naming successors. Asset titles and valuations should be up to date. Operating agreements need regular review to ensure they support smooth transitions. The human element is just as important. Can the family live with the plan? Wills, trusts and shareholder agreements must address control, interdependencies and distributions.

2. Embrace perpetual succession

Succession planning is a continuous process. Families should prepare for leadership changes in the short, medium and long term. Short-term readiness addresses unexpected shifts. Medium-term planning reviews strategy and develops future leaders. Long-term planning prepares for retirements and builds a shared identity across generations.

3. Set the stage for future leadership needs

Future leaders will need skills beyond technical expertise. Emotional intelligence, collaboration and accountability are essential. Leaders must listen, build consensus and manage communication pain points. Developing a matrix of desired competencies and a learning journey to help build these skills over time. Leadership coaching provides honest feedback and supports growth.

4. Identify and develop a cohort of future leaders

Building a cohort of future leaders requires intentional development. Family members should mentor emerging talent and address knowledge gaps. Education plans covering finance, investment and philanthropy prepare the next generation for shared responsibilities. Identifying future leaders within and beyond the family, and creating a development plan is key.

5. Manage stakeholders as you make concrete plans

Managing stakeholders means setting clear timelines and milestones for transitions. Transparency smooths difficult decisions, such as promoting non-family executives or handling family members who do not rise to leadership.

6. Address sensitive issues with care

Leadership transitions, readiness and roles for retiring leaders require thoughtful conversations. Advisors or consultants can support these discussions, ensuring wisdom is passed on and bridges are built for the next generation.

Succession planning is a journey, not a destination. With the right strategies, families and their enterprises can thrive for generations.

Source: “The most important strategies for effective succession planning.” Elisa Shevlin Rizzo, Head of Family Office Advisory and Family Advisory.

This material is for informational purposes only, and may inform you of certain products and services offered by private banking businesses, part of JPMorgan Chase & Co. (“JPM”).