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Next-Gen Readiness Score

We use this score to see how prepared the next generation is to contribute to the family office. Rate each area from 1 to 5. The result is a practical starting point for discussion and planning.

Next-Gen Readiness Score
50.0
Readiness Band
Developing readiness
Priority Development Area
Understanding of family values and purpose, Financial literacy, Understanding of family governance and decision rights, Communication and listening skills, Track record of responsibility, Personal education and development plan, Work or operating experience outside the family, Stewardship mindset and long-term thinking
Weighted Average Rating
3.00

Method

Each area receives a rating from 1 to 5. The weights reflect a practical balance between values, financial knowledge, governance, personal conduct, development, experience, and stewardship. We convert the weighted average to a 0 to 100 score. The score supports a conversation. It does not predict future performance or replace family discussion. Governance and education are separate workstreams, so a low rating can prompt discussion of both learning needs and decision authority. Documenting who may decide, approve, or access capital can make those discussions concrete.

Formulas

  • Weighted points: family_values * 0.15 + financial_literacy * 0.15 + governance * 0.15 + communication * 0.10 + responsibility * 0.10 + education_plan * 0.10 + work_experience * 0.10 + stewardship_mindset * 0.15
  • Score: round(((weighted_points - 1) / 4) * 100, 1)
  • Readiness band: score < 40 ? 'Building the foundation' : score < 70 ? 'Developing readiness' : score < 85 ? 'Ready with focused support' : 'Strong readiness'
  • Priority area: The input with the lowest rating. If tied, return all tied areas.

Worked example

  • 4*0.15 + 3*0.15 + 2*0.15 + 4*0.10 + 5*0.10 + 3*0.10 + 4*0.10 + 4*0.15 = 3.55 weighted points. Score = ((3.55 - 1) / 4) * 100 = 63.8.

Assumptions

  • The rating scale is ordinal. A rating of 5 means strong current evidence, while 1 means little evidence today. Source
  • Family governance works best when roles, responsibilities, communication, and decision processes are discussed clearly.
  • Financial literacy includes the ability to understand financial concepts and apply them to decisions. Source
  • The weights are a planning choice for this educational calculator. They are not a validated psychological or predictive model. Source
  • This calculator is educational only. It does not provide legal, tax, investment, or fiduciary advice. Source

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