Beyond Structure: Evolving Family Governance for a Global Generation
Insights from Waugh McDonald Private Office

Introduction

Across the globe, families of wealth are navigating a generational inflection point. As capital becomes more mobile, families more global, and values more diverse, the need for structured, values-based governance has never been more urgent. Yet many families still lack the frameworks to manage this complexity with clarity and cohesion.

At Waugh McDonald, we believe that family governance is not just about preserving wealth, it’s about preserving relationships, purpose, and legacy. Our approach is grounded in global best practices, but always tailored to the lived realities of families with a Kenya wealth nexus and international reach.

A Three-Stage Journey Toward Clarity and Continuity

1. FEAT: Family Enterprise Assessment Tool

We begin with FEAT— an internationally recognised diagnostic developed by Dennis T. Jaffe, PhD, a pioneer in the field of family enterprise. As certified facilitators, we use FEAT to assess the maturity, alignment, and resilience of a family’s governance across five key domains:

• Governance structures and decision-making

• Succession readiness

• Communication and conflict resolution

• Risk appetite and capital deployment

• Intergenerational engagement

FEAT provides a structured, evidence-based baseline. It’s not just a diagnostic, it’s a mirror and a map.

2. Values Edge 2.0: Articulating Purpose and Identity

Next, we guide families through Values Edge 2.0—also developed by Dennis T. Jaffe. This workshop helps families surface and articulate:

• Core values

• Shared purpose and mission

• Legacy aspirations

• Cultural and philanthropic identity

The result is a values charter that becomes the moral compass for governance decisions and a bridge between generations.

3. Governance Framework Design and Implementation

With clarity of values and structure, we co-create a bespoke governance framework that may include:

• A family constitution or charter

• A family council or assembly

• Succession and leadership planning

• Risk-adjusted investment strategy

• Communication protocols and decision rights

• Next-gen education and engagement pathways

• Legal and structural alignment: We ensure governance frameworks are fully integrated with the family’s legal entities, whether privately held companies, trusts, or foundations, both in Kenya and internationally. This includes defining roles and responsibilities, clarifying authority, and establishing reporting lines that promote transparency and accountability.

What Sets Waugh McDonald Apart

• Deep Knowledge of Global Families with a Kenya Wealth Nexus

We understand the intersection of local nuance and global complexity. Our experience

advising families with Kenyan roots and international footprints gives us a unique lens on

cross-border governance.

• Certified Expertise

We are certified Family Wealth Advisors and Family Business Advisors through the Family

Firm Institute (FFI), and Chartered MCSI members of the Chartered Institute for Securities &

Investment (CISI).

• World-Class Tools and Methodologies

As certified facilitators of FEAT and Values Edge 2.0, we bring structured, research-backed

processes to every engagement.

• Integrated Frameworks

We draw on Wealth 3.0, the UHNW Institute’s 10 Domains, and other global models to

address the full spectrum of family capital, financial, human, social, intellectual, and

spiritual.

• Bespoke, Enduring Advisory

Every family is different. Our work is collaborative, tailored, and designed to evolve with

the family over time.

Why Governance Matters

1. Preserves Family Unity — Governance provides a shared framework for communication and decision-making, especially as families grow in size and complexity.

2. Protects and Aligns Global Assets — Whether in Nairobi, London, or Jersey, governance ensures that assets are managed in a coordinated, compliant, and risk-aware manner.

3. Enables Smooth Succession — Governance formalises leadership transitions and prepares the next generation for stewardship.

4. Supports Risk-Adjusted Strategy — Especially in countries like Kenya, governance helps families define their true risk appetite and align capital deployment accordingly.

5. Builds Institutional Resilience — Governance transforms a family business into a family institution, capable of weathering change and sustaining purpose across generations.

Best Practices in Family Governance

• Family Constitution: A living document that outlines the family’s mission, values, and governance principles.

• Family Council: A representative body that facilitates communication and generational engagement.

• Succession Protocols: Clear guidelines for leadership transitions.

• Capital Governance: Policies for distributions, reinvestment, and risk management.

• Education and Mentorship: Preparing the next generation for responsible ownership.

• Legal and Structural Alignment: Ensuring clarity of authority, accountability, and compliance.

Structuring Family Wealth with Purpose

We help families govern their capital across a range of asset types, each with a distinct role in the family’s overall wealth strategy:

Asset Category and Role in the Family Wealth Strategy

Lifestyle Assets

Residential properties used by the family. 

Governed for access, maintenance, and succession.

Real Estate Investments

Income-generating or development properties held for long-term growth and diversification.

Operating Businesses

The family’s core wealth creation engine. 

Governance focuses on leadership, succession, and reinvestment.

Family Wealth Fund(s)

Internationally diversified portfolios managed by Waugh McDonald. Serve as the passive growth engine.

Private Placements

High-risk, speculative investments. Governance ensures clear allocation limits and exits strategies.

This structure allows families to define the purpose, governance, and reporting expectations for each asset class, ensuring decisions are made with clarity and accountability.

Conclusion: Meeting Families Where They Are

Every family is on a journey shaped by its history, values, ambitions, and challenges. At Waugh McDonald, we don’t prescribe a one-size-fits-all solution. We meet families where they are, help them articulate where they want to go, and walk alongside them as they evolve.

Governance is not just about control, it’s about clarity. It’s not just about structure, it’s about stewardship. And it’s not just about today, it’s about building something that lasts.

If your family is ready to take the next step in its governance journey, we’re here to help you shape it with purpose, reach out to us at info@waughmcdonald.co.ke.