Finding Cultural Fits For Your Family Office

According to Todd Hohauser, his father was “talking about culture and fit before it was cool” when he founded retained executive search firm Harvey Hohauser & Associates in 1986. As a second-generation family business, the firm has particular expertise in recruiting for family offices and family businesses. Hohauser, who today is CEO, and his colleague Sam Frank, vice president of executive search, talk about hiring for family offices — in particular, the importance of culture and fit:

What qualities do family offices look for when hiring?

Hohauser: Family business or family office experience is preferred, but not required. Family offices are trying to find somebody that the family can trust and be transparent with, with so much personal and financial information. There’s so much trust that has to occur within these family offices, because these people become part of the family.

How do family offices differ in culture from other related businesses, such as private equity?

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Frank: In a family office, the candidate has to fit in with the values of the family. Some people come to family offices out of private equity, and that’s a big transition. There are similarities, but the personality piece of it is much different. For example, a family office may have a directive based on giving, whereas private equity is all about the numbers, the KPIs. It’s very transactional, whereas family offices can be very relationship oriented.

Hohauser: Private equity often has a quarter-to-quarter approach, whereas a family office or family business is generation to generation.

How do you discover whether there is a cultural fit between a candidate and a family office?

Hohauser: We have a three-phase process. The first phase is understanding our client — the family office that is hiring. We look at culture, as well as the knowledge, skills and abilities required for the position.

The second phase is understanding the candidates. Every candidate spends up to two hours with one of our recruiters being screened, then up to two hours with a lead consultant. We also sit in on their interviews with the client to watch the body language and chemistry — and to ensure that they’re telling the client the same thing they told us. Then we do reference checking and credit checking.

The third and final phase is making the match. It’s more about the candidates’ values than their track record, because you don’t have to have worked in a family business or family office to share that family’s values.

How do you discover the candidate’s values?

Hohauser: We always ask candidates a very long question about values: ‘Your parents each taught you a value — a value that you hold near and dear to your heart, a value which is immovable and unchangeable, a value that you think about every day. Each of your parents taught you a different value. What was the value your mother taught you, and what was the value that your father taught you?’ The answers are fascinating, and we share them with our clients. That gives them an even bigger peek behind the curtain of who the candidates are.

Frank: We ask that question of the clients as well. In a family office we talk to the leadership group that runs it. If the family is very involved, we talk to a couple of them as well, because they’re the ones who are leading the values there. We’re asking the same set of questions to the ownership and leadership group so that we understand what kind of person is going to fit there and has a similar value system. What motivates them? What are they passionate about? What drives them? That’s how we make the match and can feel confident that a candidate will be a good fit.

About the Author

Margaret Steen

Margaret Steen is the editor of FO Pro, The Family Office Professional. Based in Silicon Valley, she has written for Family Business Magazine for more than 15 years.


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