Governance and Decision Making - Dennis Jaffe

10 snips

Aug 8, 2024

Dennis Jaffe, Domain Chair for Governance and Decision Making at the Ultra High Net Worth Institute, draws from his rich background in family therapy and organizational consulting. He discusses the vital role of governance in family enterprises, emphasizing the need for practical implementation of governance plans. Jaffe highlights the importance of transparency, shared purpose, and the integration of younger generations into governance discussions. He also introduces the concept of 'Wealth 3.0,' urging families to actively shape their decision-making processes.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ANECDOTE

From Family Therapist To Governance Chair

Dennis Jaffe described his career path from family therapy to organizational consulting and academia.
He explained how that background led him to join the Ultra High Net Worth Institute and chair the governance domain.

INSIGHT

Governance Is An Active Operating System

Governance is more than documents; it must be an active, vital center of the family enterprise.
Having agreements isn't enough if family members don't read or implement them.

INSIGHT

Two Social Systems Operate Together

Family enterprises are two overlapping social systems: family relationships and organizational roles.
Governance must manage both sets of dynamics across businesses, philanthropy, and family property.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

In this episode, host Russ Haworth is joined by Dennis Jaffe, the Domain Chair for Governance and Decision Making at the Ultra High Net Worth Institute. Dennis shares his extensive experience and insights into the complexities of governance and decision-making within family enterprises. They discuss the importance of governance, its various facets, and how it integrates with other domains within the institute.

Key Topics Covered:

1. Introduction to Dennis Jaffe

- Dennis's background and involvement with the Ultra High Net Worth Institute.

- His career journey from family therapy to organizational consulting and academia.

2. Understanding Governance

- Definition and significance of governance in family enterprises.

- The role of governance documents and agreements.

- Importance of active and effective governance beyond just having agreements.

3. Components of Governance

- Shared purpose and meaning within the family enterprise.

- Transparency and information sharing.

- Governance structures: board of directors, family councils, and other entities.

- Roles, responsibilities, and accountabilities of family members.

4. Challenges in Governance

- The complexity of integrating family dynamics with business operations.

- The need for continuous and active engagement in governance processes.

- Common pitfalls like the 80% plan where families start but don't fully implement governance plans.

5. Institute's Initiatives in Governance

- Efforts to provide practical resources and working papers for effective governance.

- Importance of interdisciplinary understanding among advisors (legal, financial, therapeutic, etc.).

- Training and educating advisors on the comprehensive aspects of governance.

6. Advisors' Role in Governance

- Importance of advisors being aware of and integrating governance in their advice.

- Encouragement for advisors to look beyond their specific domain and consider the broader governance implications.

7. Wealth 3.0 and Family Involvement

- The shift from an expert-led approach to empowering families to be active participants.

- Developing skills within the family to manage and engage in governance processes.

Resources Mentioned:

- Ultra High Net Worth Institute Website: [UHNW Institute](https://uhnwinstitute.org)

- Wealth 3.0 by Dennis Jaffe and colleagues

Conclusion:

Dennis Jaffe emphasizes the importance of effective governance and decision-making within family enterprises and the need for advisors to adopt a holistic and integrated approach. The Ultra High Net Worth Institute provides valuable resources and training to support advisors and families in this endeavor.

---

For more information, visit [UHNW Institute](https://uhnwinstitute.org).

---