Skip to main content
Official Logo of Columbia Business School
Academics
  • Visit Academics
  • Degree Programs
  • Admissions
  • Tuition & Financial Aid
  • Campus Life
  • Career Management
Faculty & Research
  • Visit Faculty & Research
  • Academic Divisions
  • Search the Directory
  • Research
  • Research Resources
  • Teaching Excellence
Executive Education
  • Visit Executive Education
  • For Organizations
  • For Individuals
  • Program Finder
  • Online Programs
  • Certificates
About Us
  • Visit About Us
  • CBS Directory
  • Events Calendar
  • Leadership
  • Our History
  • The CBS Experience
  • Newsroom
Alumni
  • Visit Alumni
  • Update Your Information
  • Lifetime Network
  • Alumni Benefits
  • Alumni Career Management
  • Women's Circle
  • Alumni Clubs
Insights
  • Visit Insights
  • AI & Transformative Tech
  • Climate
  • Business & Society
  • Entrepreneurship
  • Finance & Investing
  • Magazine

Opening the Black Box of the Family Office

This month we mark National Family Owned and Operated Businesses Day, and the phrase rewards a second look. We celebrate the business, and rightly so. The business may be the source of wealth, the center of identity, the training ground for leadership, and the shared project that connects generations. Behind many of these enterprises are remarkable stories: founders and families who began with almost nothing and built something lasting through years of work, risk, and sacrifice.

But the wealth a business creates does not stay inside it. Over time it takes other forms: liquidity, portfolios, real estate, trusts, foundations, direct investments, philanthropy, and new ventures. It also includes wealth that never appears on a balance sheet at all: a family's knowledge, judgment, relationships, reputation, and capacity to make decisions together. The organization a family builds to hold all of that is the family office.

It is usually described as a structure for managing wealth. True, but incomplete. A systematic review published this year helps widen the frame. Reviewing 60 peer-reviewed studies published between 1980 and 2024, Siaba, Rivera, and Currais argue that the family office is better understood not only as a service platform but as a governance structure that mediates among the family, the business, and the wealth.

Published
June 17, 2026
Publication
Family Enterprise Insights
Jump to main content
Treats in fog
Topic(s)
Artificial Intelligence, Decisions, Family, Governance, Management, Research Findings

0%

Is the family office managing assets, or quietly becoming the organization that shapes the family's future?

That shift matters for practitioners because it changes the question. If a family office is treated only as an administrative or investment vehicle, the conversation quickly turns to services, staffing models, and benchmarking. But if it is also a governance structure, then choices that look technical begin to look strategic: who decides, how control is shared, what kinds of behavior are reinforced, and how a family's values and long-term aims are carried forward.

This is one practical reason the review's conceptual approach is worth mentioning. The authors draw on agency theory, stewardship, and socio-emotional wealth to show that family offices must be understood not only in terms of efficiency and returns, but also in terms of trust, responsibility, family cohesion, and the protection of legacy. Understood this way, governance is more than a set of committees than a family's capacity to decide together, to hold its differences, and to renew itself over time. For families, that is useful not as theory for its own sake, but as a reminder that the hardest family office decisions are rarely only financial.

The review also challenges the language of universal best practices. One of its clearest messages is that the structure and behavior of a family office depend heavily on family priorities. The choice among a single family office, multi-family office, virtual office, embedded model, or in-house structure is not simply operational. It has consequences for control, privacy, professionalization, transparency, and the transmission of family legacy.

Read that way, the family office behaves less according to any borrowed template than according to where the family sits in its own story. The review finds that later-generation single family offices place greater emphasis on family-related goals and governance mechanisms, while first-generation offices tend to invest more in entrepreneurial activity, especially direct entrepreneurial investments. It also shows that offices connected to families who still own the original business tend to emphasize asset preservation, non-financial goals, and transgenerational control more strongly than offices created after the business has been sold.

That is why the article is a useful bridge to what might be called best thinking rather than best practice. If office design reflects family purpose, willingness to share assets, ownership complexity, generational stage, and the continuing role of the operating business, then replicating what another office does may matter less than thinking carefully about what this family is trying to preserve, build, and become. The review supports exactly that move away from imitation and toward more grounded judgment.

It also gives reason for humility. Of the 60 studies in the review, only 16 are empirical. The field sees large, visible multi-family offices more clearly than the private single family offices that are often hardest to access and least represented in the evidence. The review therefore suggests that much of the confident guidance in circulation still rests on a limited empirical base.

That limitation is not a weakness in the article. It is one of its most important contributions. The authors explicitly call for deeper qualitative and empirical work, including confidential access, case-based inquiry, and closer attention to how family offices are actually organized and governed from the inside, especially in single family offices.

This is where the black box opens. Much of the field still describes the family office from the outside: what services it offers, what asset classes it holds, or which model it resembles. Far less is known about how decisions are truly made, how roles are coordinated, how different functions interact, how the office engages the family, and how it balances financial, relational, and legacy goals in practice.

That gap is the steppingstone to a new research initiative at the Global Family Enterprise Program. It is also where we would add a family enterprise lens, consistent with how we have long approached the family office at Columbia Business School: not as a firm, a fund, or a foundation, but as an organization in its own right. Rather than assembling another set of borrowed templates, the project studies the family office as an organization: its governance, its people, its decisions, and its relationships with advisors, partners, and markets. It does so through confidential interviews with principals, chief investment officers, and leaders across functions, alongside a complementary survey on investment strategy and structure.

The question is not only how to manage the wealth, but who the family needs to become in order to steward it well.

For practitioners, the point is not to reject experience or ignore what others do. It is to resist mistaking patterns for answers. The more useful question may not be, "What is the best practice family office model?" but rather, "What kind of organization does this family need if it wants to steward not just financial capital, but also judgment, relationships, responsibility, and continuity over time?"

THE RESEARCH ANCHOR

Siaba, Rivera, and Currais (2026). "The contribution of family offices to family businesses." European Research on Management and Business Economics, vol. 32. Open access. A PRISMA systematic review of 60 peer-reviewed studies published between 1980 and 2024, of which 16 are empirical.

Reflection Questions

  • What forms of wealth does the family office currently organize, and which forms receive too little attention?
  • When discussing structure, is the family choosing a model for efficiency alone, or also for the kind of governance, control, and continuity it wants to create?
  • Is the office helping family members become more capable owners, or unintentionally making them more passive beneficiaries?
  • As the family and its wealth evolve, what must the office learn from the inside rather than borrow from the outside?
 

There may not be a Family Office Day, but National Family Owned and Operated Businesses Day gives us a useful opening. It invites us to celebrate not only the businesses families build, but also the ownership responsibilities that continue as wealth grows beyond the operating company.

A practical call to action, then, is twofold. First, for families and advisors: use this moment to revisit what your family office is really doing for you. What forms of wealth is it stewarding? What kind of owners is it helping you become? Does its current design reflect your best thinking, or inherited templates?

Second, for those who work in or with family offices: consider lending your experience to this research effort. By opening doors for confidential conversations and sharing how your office actually operates, you can help the field move beyond slogans and offer families guidance worthy of the responsibilities they carry.

Research in Progress

As the research highlighted in this article demonstrates, we still know surprisingly little about how family offices actually operate.

While family offices have become increasingly important in the stewardship of family wealth, most existing research focuses on structures, services, and investment activities. Much less is known about how decisions are made, how different functions interact, how families influence organizational behavior, and how financial, relational, and legacy goals are balanced over time.

To help address this gap, the Global Family Enterprise Program at Columbia Business School has launched a new research initiative examining family offices as organizations in their own right.

Through confidential interviews with principals, chief investment officers, CEOs, legal leaders, and other senior executives, alongside a complementary survey on investment practices, we seek to better understand:

• How family offices are organized and governed
• How decisions are made across functions and generations
• How offices interact with advisors, partners, and other stakeholders
• How family priorities shape organizational choices
• How investment strategies and structures evolve over time
• How offices allocate capital, organize investment activities, and make financial decisions
• What distinguishes family offices from more traditional organizations

Rather than searching for universal "best practices," the project aims to identify patterns, challenges, tradeoffs, and emerging forms of best thinking across different family office models and contexts.

Family offices are often described by the wealth they manage. This study explores, from the inside, the organizations they become.

How You Can Help

We are currently seeking introductions to family office leaders willing to participate in confidential research conversations.

If you would like to learn more, suggest participants, or explore involvement in the study, please contact:

Gaia Marchisio
Faculty Director, Global Family Enterprise Program
Columbia Business School

You Might Like

Entertainment
Date
June 18, 2026
Image displaying "Dynasty The Murdochs" and the Murdoch family members
Entertainment
Family Business News

When Succession Becomes Reality: Dynasty: The Murdochs

Netflix's Dynasty: The Murdochs offers a rare look inside one of the world's most scrutinized family enterprises, and a documentary that the series Succession was reportedly inspired by. The film traces the succession tensions, internal family dynamics, and governance challenges that have defined one of media's most powerful dynasties. It is candid, compelling, and at times uncomfortable in the way that only real family stories can be. This month we are particularly proud to note that Global Family Enterprise Program co-founder Patricia Angus appears in the final episode as a Family Trust Consultant, bringing her expertise directly into the conversation.
  • Read more about When Succession Becomes Reality: Dynasty: The Murdochs about When Succession Becomes Reality: Dynasty: The Murdochs
Decisions, Family, Research Findings
Date
May 21, 2026
two one way signs pointing different directions
Decisions, Family, Research Findings

Will Talent Choose Your Family Enterprise?

Last week, we proudly watched the Class of 2026 graduate, and it feels like it is the right moment to ask a question that sits at the heart of both career development and family enterprise continuity: where can talent truly grow?
  • Read more about Will Talent Choose Your Family Enterprise? about Will Talent Choose Your Family Enterprise?
Entertainment
Date
May 15, 2026
book cover of The Spinach King by John Seabrook
Entertainment
Family Business News

Frozen in Time: What a New Jersey Vegetable Empire Teaches Us About Succession

John Seabrook's The Spinach King, a New York Times Notable Book of 2025 and New Yorker Best Book of the Year, traces four generations of his own family's frozen-vegetable empire. It is a story of succession, sibling dynamics, and legacy, told with humor, honesty, and the warmth of a reporter coming home.
  • Read more about Frozen in Time: What a New Jersey Vegetable Empire Teaches Us About Succession about Frozen in Time: What a New Jersey Vegetable Empire Teaches Us About Succession
Artificial Intelligence, Decisions, Family, Governance, Management, Research Findings
Date
April 27, 2026
Digital image of AI
Artificial Intelligence, Decisions, Family, Governance, Management, Research Findings

Is AI a Threat to Legacy, or a New Way to Coauthor It?

As Columbia Business School deepens its institutional commitment to AI through its AI in Business Initiative and the upcoming "MBA Transformed: AI and Beyond" teaching symposium on June 1, 2026, family enterprises face a parallel question: is AI a threat to legacy, or a new way to coauthor it? A recent study in the Journal of Product Innovation Management, "AI Adoption in Family Firms: A Mixed-Methods Study on the Paradoxical Roles of Passive and Active Family Involvement," suggests AI adoption is as much a relationship and governance challenge as a technological one. Drawing on 125 interviews and survey data from 1,444 German firms, the authors find that passive family ownership may slow adoption, while active family management can accelerate it, particularly when paired with strong external ties to suppliers, customers, and even competitors. For enterprising families, the deeper insight is that legacy is not static; it is interpreted and renewed across generations. AI may become a voice of the next generation, offering younger family members a concrete way to contribute to continuity, if families are willing to turn legacy into a living conversation. Read the full article, Is AI a Threat to Legacy, or a New Way to Coauthor It?
  • Read more about Is AI a Threat to Legacy, or a New Way to Coauthor It? about Is AI a Threat to Legacy, or a New Way to Coauthor It?
Save Article

Download PDF

More to Explore
Share
  • Share on Facebook
  • Share on Threads
  • Share on LinkedIn
Official Logo of Columbia Business School

Columbia University in the City of New York
665 West 130th Street, New York, NY 10027
Tel. 212-854-1100

Maps and Directions
    • Centers & Programs
    • Current Students
    • Corporate
    • Directory
    • Support Us
    • Recruiters & Partners
    • Faculty & Staff
    • Newsroom
    • Careers
    • Contact Us
    • Accessibility
    • Privacy & Policy Statements
Back to Top Upward arrow
TOP

© Columbia University

  • X
  • Instagram
  • Facebook
  • YouTube
  • LinkedIn

External CSS