4 Signals That Will Shape 2023 And 16 Actions For Family Offices To Consider
2022 was a year of continued volatility on multiple fronts. With 2023 well and truly underway, it's time for family offices to make sure they're set for the year ahead.
2022 saw continued volatility across multiple fronts. Family offices need to be prepared for 2023, now that the year is well underway. After the turmoil of the past three years, many family offices feel a bit unsure about how to approach strategic planning. Simple has just released its analysis of 2023 family office signals. This report looks beyond the headlines and market assessments to help family offices take stock of the future, and identify key shifts that family offices should be aware of. Many businesses and organizations use megatrends and trends to guide their strategic decisions. Family offices have to consider beyond their operations. Their investment decisions are based on megatrends and market movements, which is at the core of their mission. This report highlights four indicators that will likely shake up the market in 2023. These signals can help family offices be successful in the future. The biggest disruption in 2022 was Russia’s invasion of Ukraine. This had far-reaching consequences beyond Eastern Europe. It is sad to see that political instability will continue in 2023. This will make it difficult for family offices and investors to consider their roles in the global power balance. How can family offices use their capital and influence to make sure geopolitics do not continue into 2024?
Family offices have the best chance to bring about meaningful change. You can challenge the status quo and advocate for policy changes at all levels, from local to federal. This will allow you to connect with other like-minded people and organizations that are dedicated to equality. To raise awareness and encourage open discussion against injustice, use events and networking opportunities. Family offices are not strangers to mentoring and philanthropic activities. They are making a significant step forward by providing mentorship and leadership opportunities for those in need. Look out for charities that actively work towards justice and equity when deciding which charities to support. ESG isn’t just a buzzword. Because the next generation understands that sustainable investments can also bring financial benefits, they are a hot topic. In 2023, due diligence will be more urgent than ever. Succession does not mean transferring the family business. As new technology advances, issues like job displacement and ethics around data storage and use by technology companies will become more prominent and important. Although the crypto winter appears to be over, this could not be considered a problem as it could help to stabilize the market. Robots are not coming to do your job, they are coming to make it easier. Keep an eye out for AI-driven research developments and lean in. AI is another type of intelligent data. It can be used to extract key information that is useful to family offices in planning for the next year. The next generation will bring with them a new set values as they take over. These include the importance of mental health and well-being, as well as a wider acceptance of neurodiversity. There are also new family structures and parenting methods. Next-generations are more interested in financial returns than just financial returns. 2020 taught us something important: Expect the unexpected, but not be unprepared. These 2023 signals will be a beacon for the family office of the future. It's more than just about preparing for the next year. It's about adopting a new mindset and making sure that actions (and capital!) echo it.