The Future of Family Wealth: A Global Perspective on Governance

By Tsitsi Mutendi : Family Governance Advisor 🔹 Multigenerational Wealth Architect 🔹 Legacy Builder

The Baobab in a Storm: Governance as the Anchor of Family Wealth

Picture a baobab tree standing firm during a fierce storm. Its roots sink deep into the ground, holding it steady, while its branches bend and sway with the wind. This strength and adaptability mirror the essence of family governance—it anchors families in shared purpose while allowing them to adapt to changing times.

The Banda family, a multi-generational agricultural enterprise in Malawi, learned this lesson firsthand. As their operations expanded into neighbouring countries, conflicts began to rise. Siblings managing local branches clashed with cousins handling international operations, and their differing priorities created a rift. Without a clear governance framework, decisions became fragmented, jeopardising both trust and growth. The turning point came when the family established a governance council and drafted a family charter. This structure clarified roles, outlined decision-making processes, and reconnected family members to their shared vision.

Here are five practical ways to build governance that roots families like the baobab, ensuring stability and resilience.

1. Governance as Roots: Establishing a Shared Foundation

The Banda family’s charter became their guiding compass. Every family member contributed, creating a shared sense of ownership and responsibility. Over time, even younger members who had felt excluded began to see governance not as a restriction but as a framework for inclusion and protection.

“Governance is the language through which families communicate their purpose and ensure alignment through time.” – Guillermo Salazar, Chapter 6, Raising the Baobab.

Practical Tip: Facilitate inclusive family workshops to create a governance charter that reflects shared values and aligns with future goals. Update it annually to remain relevant.

2. Bridging Generations Through Governance

When Thandi, a younger Banda family member, proposed integrating smart farming technology, her elders resisted, fearing it would disrupt their traditional methods. The governance council resolved the conflict by approving a pilot project. When Thandi’s trial succeeded, it not only improved efficiency but also strengthened the family’s bond. Elders valued her innovation, while she respected their need to preserve tradition.

“Like the baobab storing water for times of drought, governance helps families conserve their legacy while adapting to new realities.” – Tsitsi Mutendi, Chapter 1, Raising the Baobab.

Practical Tip: Use governance councils to approve small pilot initiatives for generational ideas, fostering collaboration while preserving heritage.

3. Adapting to Global Realities: The Need for Regional Expertise

As the Bandas expanded internationally, they encountered regulatory hurdles and cultural misunderstandings. Elders struggled with international compliance, while younger members felt alienated by decisions that didn’t consider local customs. By creating regional advisory boards with local experts and family representatives, they successfully navigated these challenges.

“A family’s governance must be both localized and universal—it must reflect the global while respecting the local.” – Joan Sharp, Chapter 9, Raising the Baobab.

Practical Tip: Establish advisory boards in each operational region to ensure governance reflects both family values and local realities.

4. Transparency as a Trust Builder

For years, the Banda family’s lack of transparency caused suspicion among members, especially regarding finances. Regular financial reporting and open family meetings transformed their governance structure. Transparency built trust, ensuring that even tough decisions were met with understanding.

Practical Tip: Incorporate quarterly financial updates and open Q&A sessions into family meetings to promote accountability and build trust.

5. Preparing for Seamless Succession

When the Banda patriarch fell ill unexpectedly, the family council quickly stepped in, assigning interim leadership roles to younger members under the guidance of senior leaders. This succession strategy, outlined in their governance charter, ensured stability and confidence during a critical period.

Practical Tip: Create a detailed succession roadmap early, including interim leadership plans, mentorship programs, and structured training for future leaders.

Governance is like the baobab’s root system—strong and unshakable, yet flexible enough to support growth. By creating inclusive systems, fostering trust, and bridging generations, families can thrive in even the harshest conditions. To explore more stories and strategies for effective governance, delve into Raising the Baobab—a must-read for families seeking to anchor their legacy while reaching for the future.

Tsitsi Mutendi is a renowned expert in family governance, with a strong focus on African family firms. As the co-founder of African Family Firms Expert, she has dedicated her career to advising and consulting family businesses and family offices. Tsitsi is a skilled facilitator, speaker, and author, known for her insightful contributions to the field. In 2023-24, she serves as the President of the Professional Speakers Association of Southern Africa. Tsitsi is also the co-founder of Mutendi Montessori, a primary and secondary educational institution, and the founder of DanTs Smart, a technology and software development firm. With over 23 years as an entrepreneur. Tsitsi is a renowned multi-potentialite entrepreneur whose expertise has earned her recognition in leading publications such as Forbes Africa and Arise Africa, and she has been invited to speak on prestigious global stages, including the Athena40 panel. Her work can be found on www.tsitsimutendi.com www.nhakalegacy.com www.africanfamilyfirms.org and her trending podcast for families of wealthy and their advisors https://anchor.fm/enterprisingfamilies. You can Also get her book RAISING THE BAOBAB https://amzn.to/42cpFdL