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The recent surprising voluntary abdication of Queen Margrethe II of Denmark has sparked much debate over royal succession protocols around the world, while also shining a spotlight on the very nature of the royal family itself. Perceptions and feelings about royalty vary widely, as do the exact roles of royalty. In many constitutional countries, the monarch performs public functions without government involvement, but in some countries, members of the royal family hold the highest positions and run the country.
In some ways, the Royal Family is the original family office, operating with an extensive support team and established network, whose purpose is to maintain wealth and control all family affairs. Adding in the element of varying degrees of government involvement and national responsibility certainly complicates matters, but perhaps it is more so when family offices occupy much of the focus and are tied to large corporations with their own demands. Isn’t it the same?
Modern royal families exhibit a wide range of investment strategies, from traditional holdings such as real estate and artwork, to modern industry and shares in global companies. Their financial activities often play a key role in their respective countries’ economies, and compared to how family offices operate, from family dynamics to overseeing large and diverse portfolios. Gain insights to manage everything.
A look at some of the world’s most prominent monarchs reveals several lessons for family offices, both in how they meet challenges and how they don’t.
1. Managing privacy and public perception
The British monarch is probably the most visible monarch for anyone in the English-speaking world interested in royal news. It owns real estate worth more than $19 billion, from which most of its members derive their income, and beyond this they have significant investments in art and collectibles, as well as various assets associated with the royal brand. Additional income is earned through tourism activities, products and endorsements.
Currently ruled by Charles III, the family, which bills itself as an exemplary model of family values, has had its fair share of scandals over the years (as almost all royals do). ). They also have a sometimes rocky relationship with the media, providing ample work for public relations teams to maintain privacy about personal matters while maintaining public perception by sharing just the right amount of information. I ended up balancing the difficult task of managing. Profile Family understands.
In today’s world dominated by real-time news and social media, public perception cannot be left to chance, and how the British monarch used modern media to control the narrative and easily influence public sentiment. How they deal with events that could derail them is often a masterpiece. Reputation Management includes its own YouTube channel with over 3 million subscribers.
2. Philanthropy and social responsibility
The Dutch royal family has historically been well-liked and respected in the Netherlands, with King Willem-Alexander and Queen Máxima claiming they are effectively just a Dutch family, even though they happen to be extremely wealthy. The king, who remains anonymous purely due to his interest in aviation, has worked as a co-pilot for national airline KLM Royal Dutch Airlines for more than 20 years, while the queen is known for her active involvement in charity work. He has even helped thousands of people participate in charity work. Number of citizens participating in the annual Amsterdam City Swim charity event.
Just last week, Queen Máxima was in Davos for the World Economic Forum, where she attended in her capacity as the United Nations Secretary-General’s Special Advocate on Inclusive Development Financing (UNSGSA), representing governments and businesses to promote inclusiveness. I met with them. Especially when it comes to digital financial services. This kind of initiative helped endear him to the King of the Netherlands and can be an inspiration for family offices looking to make a bigger impact, especially if they want to align their philanthropy with business interests. be.
3. Adapting to legal and cultural changes
Thailand’s monarchy exhibits a slightly less modern approach in relation to the country’s population. As constitutional monarchs since 1932, they have been inextricably linked to the events that have led to a fairly turbulent few decades, a period that included two military coups just eight years apart, and where the media is now The focus is on the unknown succession plan of the company.
Apart from that, they are dealing with the growing challenges, especially legal issues, posed by a more democratically oriented and globally connected demographic. Thailand’s lese majeste law, which effectively criminalizes insulting the monarchy and carries penalties of up to 15 years in prison for each offense, continues to be a controversial issue.
More than 200 people have been indicted since 2020, and the case is endearing to Thais, especially vocal young people who feel the country should take a progressive path. This is a lesson for family offices that they must stay informed and adapt not only to economic changes but also to cultural and legal changes, otherwise they will face problems for both family and business. You risk losing the support of the people you rely on.
4. Balance between tradition and innovation
Another country with a royal family that has received mixed reactions globally is Saudi Arabia. The House of Saud is a ruling royal family that controls political and government activities with several thousand members. Questions continue to be raised about the country’s human rights record, but under de facto ruler Mohammed bin Salman, the country has sought to modernize and diversify from revenue generated from its vast oil resources. We have been promoting an ambitious plan to achieve this goal.
Saudi Arabia maintains strong traditions derived from Islam and Arab customs, but through Vision 2030, Saudi Arabia seeks to modernize, diversify its economy, and position the country globally in areas such as sustainability and renewable energy. We also have very ambitious plans to position ourselves as a leader in the world. This includes Neom, a $500 billion urban development project best known for its “linear smart city” known as The Line.
This juxtaposition of old and new is forcing many established family offices to balance respect for legacy with the adoption of modern technology solutions and practices to remain relevant and efficient. I can relate to this in some respects. While there is value in respecting how things have been done historically, progress and evolution within a family office should not stop.
5. Foresight regarding inheritance
Succession issues are repeatedly mentioned as an underserved area in the world of family bureaucracy, but the Danish Royal Family has shown foresight in Queen Margrethe II’s voluntary abdication, allowing a new generation to take over the reins of power. and demonstrated its value. Families work together across generations to make long-term plans.
Having a clear line of succession to enable stability and continuity is crucial for any family office, and an agreed and clearly defined plan will not only ensure a smooth transition, but will It also helps maintain family vision and values beyond.
Of course, there are many more royal families around the world, each with their own structure and nuances to learn from, and each with their own share of scandals. Like family offices, no two are the same, although they share the challenges posed by their presence in a modern society where globalization and technology have increased the need to adapt more quickly. It’s no exaggeration to say that companies that embrace the learnings of both their history and the emerging next generation will be best prepared for whatever the future may bring.
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