What does it mean for a family office to achieve operational excellence? In the 2024 RSM Family Office Operational Excellence report, RSM surveyed 100 family offices in the U.S and Canada to gauge their operational challenges and successes.
“Operational excellence is making effective use of people, process, technology and data,” says Tony Wood, partner and global family office leader for RSM US LLP, in the report.
The report looked at the top operating expenses for single family offices (listed by percentage of operating budget). Accounting and fee billing topped the list at 21%, followed by investment (17%), administration (15%), tax planning and compliance (13%) and legal (9%).
One way most family offices try to contain costs is by outsourcing some functions. More than half of family offices surveyed outsource IT services (81%), bill pay (64%), and tax services (55%). Almost half (49%) outsource legal services.
The survey also examined staffing challenges and found that attracting IT talent is a key driver of staffing difficulties: 63% of the family offices surveyed said they have some level of difficulty with it. Likewise, 64% said they have trouble providing competitive benefits. The report discusses strategies such as offering remote or hybrid work schedules to help attract and retain employees.
