At the Alchemia Group we are helping our clients think & act differently in regards to their wealth and its impact on thier family - because we know it is more than just numbers and plans, it's the Balance of Art & Science with Pragmatism and Vision.
Scenario Planning is a very common and useful way to analyze the impact of a business strategy. It also comes into play in other aspects of life. For example, when you plant a tree you think about how much the tree will grow over time when deciding on a planting location. You may also consider how the roots will grow; deep and narrow or shallow and wide.
Scenario planning can also be very helpful with Family Wealth Plans. Unfortunately, it is rarely discussed or utilized.
Draw your family tree; you, your children and grandchildren. Now draw the same tree but add 10 years of age to everyone. What do you hope will be going on with your family members at that point in time? Will there be marriages, college graduations, more children etc? As you think about your financial and wealth plans how do they factor into what your family will become over the next 10 years? What other possible scenarios/stories are there for your family? What family traditions should you begin to implement today that could contribute to the positive future of your family? What do you need to reinforce? What is the impact you want the next 10 years to have on the family’s human, intellectual and social capital?
Family Scenario Planning, based on insightful inquiry, can produce the long term results most families hope to achieve.