Gerald Pulvermacher and his team provide family office and business services for clients in North America, Britain, Europe and Singapore, but he believes that the key to their work is not just geography, but psychology.
Pulvermacher is the founder of Gerald Pulvermacher & Associates, a boutique firm specializing in the transition of family businesses, family offices for the next generation of leaders and improving business performance. He is also a licensed clinical and organizational psychologist. His team includes psychologists, MBAs, physicians and human resources specialists.
Previously, Pulvermacher was a senior partner and global practice director at Deloitte Consulting in New York, as well as senior partner and president of Oliver Wyman Delta (Canada), managing partner of PSS Consulting (Canada) and co-lead of PulvermacherFirth (in New York City), later acquired by Hudson Highland Corp. He splits his time between Canada and the United States.
Canadian Family Offices caught up with him recently to ask him about his work, including the role psychology plays in working with wealthy families.
How is being a psychologist useful in working with family offices?
Sometimes it’s hard to see how a family office could do without a psychologist.
The issue is to create a structure spelling out the family members’ roles and responsibilities and the decision-making process. There are always differences of opinion. This can lead to difficult conversations and tension.
Canadian families tend to take a long view about succession, while American families tend to focus more on the children and grandchildren and not beyond.
What kinds of situations could benefit from professional psychology?
Many families start out with the idea that all the children in a family should be treated equally in the business. Then they realize that equal is not always fair. Sometimes there are family members who want to take an active role and others who just want the money but don’t want to be too involved.
These families benefit from having a family charter — a document that sets out the rules and procedures. It’s a long process that requires a lot of conversations. A psychologist can help families navigate.
What do you do in your role as a psychologist when you’re in the room with a family?
I listen with a third ear. I’m not only listening to what people are saying, I pick up nuances from how they’re saying it. For example, someone might keep saying the same thing again and again in a meeting. I try to analyze why they’re doing this. They may be angry, they may be going around the subject to avoid conflict, or they may have a hidden agenda. As a psychologist I recognize certain patterns of behaviour and can help everyone determine the real issues they’re trying to solve.
Where does the psychology end and the financial advice begin?
I concentrate on the psychology. I stay in my swim lane. I help families determine the kind of financial and business advice they need, and I bring them to the 30 people we have on our staff around the world and others from outside who we can bring in for the specialized advice.
Do situations ever get as dramatic as those on TV shows like Succession or Billions?
I’ve watched those shows and everybody is fascinated with them. My work is not quite as dramatic, but I am brought into situations where everybody is either considering hiring lawyers or has already brought them in.
You have offices in both Canada and the U.S. Is there a difference in the way families and family offices operate in the two countries?
Yes. I’m a dual citizen of Canada and the U.S., spending time in Florida and Ottawa. There are definite differences between the two countries’ families. First is the level of wealth — there are many more extraordinarily wealthy families in the U.S., so the need for family office services is greater.
Anecdotally, I also find that Canadian families tend to emphasize the family itself more — there seem to be fewer families where the head has been married many times, raising issues about succession and control.
I also find that Canadian families tend to take a long view about succession, thinking about what’s going to happen to the business in the fourth or fifth generation, while American families tend to focus more on the children and grandchildren and not beyond.
Do Canadian and U.S. families plan for succession differently?
I find that Canadian families put more requirements on their offspring if the kids want to be involved in the family business. They expect more in terms of their education and work experience, rather than just letting them come in because of their connection. There are lots of exceptions going both ways in the two countries, but I do see a general trend.
Are Canadian high-net-worth families embracing family office services as much as American ones?
It’s hard to say. In the last 10 years I have seen more family offices and organizations in both countries popping up to help families manage their businesses. That’s actually a concern. Many hold themselves out as succession experts, but a lot of them are experts in just one area, such as legal or tax planning. I think people should focus on their expertise; they can bring in other experts for different aspects of service.
What gets me down is when you have someone in a family who’s totally intransigent, when you can see how it would be better if they would bend a little, and they just dig in their heels. It’s rare, but it does happen. I guess it’s like being a surgeon, you can’t save everyone.
What I love most is that it’s never, ever boring. It’s like solving a puzzle — you don’t really know what’s going on until the family starts to trust you and open up. I like figuring things out and sharing this with my clients and seeing them thrive.
This interview has been edited for clarity and length.
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