Three Effective Approaches to Family Office Management
The decision window for executives in family office management has steadily shrunk in recent years. The rapid advancements in information dissemination, with real-time and on-demand access, challenge finance functions to keep pace with the multitude of modern sources of insight and analysis that internal and external stakeholders receive.
A study conducted by Aberdeen reveals that 64% of business managers have experienced a decrease in their decision-making time over the past year. Another study by Aberdeen found that 28% of business managers require data within an hour of a business event, while 42% need information within a day. This limited timeframe leaves little room for finance to provide supporting analysis in the decision-making process. Download the full report here.
Historically, decision-making processes have relied on fact-based, data-driven management information. Executives would depend on monthly financial and offline operational reports outside the finance function to monitor the business’s health. However, financial reports and real-time operational data often serve as lagging performance indicators. While these metrics may have sufficed in the past, they are less effective today due to the lag in information dissemination and increasing business volatility.
To respond to these challenges, instantaneous, deep financial insight is now more crucial than ever. An analytical approach that enables family office management to monitor and measure the development of strategic drivers and make confident decisions is necessary.
When it comes to decision-making, executives rarely have the luxury of time. This blog will explore their challenges in driving performance and present innovative solutions that can lead to better outcomes.