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and family office executives can develop plans that
allows them to support their principal by ensuring that
the entire superyacht support team – afloat and ashore
– is capable of providing: (1) the highest level of luxury
service and superyacht asset management, (2) costeffective
ongoing operating and maintenance regimes,
and (3) accurate estimates of cash flow and capital
investment requirements.
Luxury service and asset management plans identify
the full range of lifecycle costs and risks attributable to
the superyacht and include its component assets such
as tenders, toys, entertainment systems, gymnasiums
and so on. A comprehensive plan allows the owner’s
superyacht team to focus on items that will have the
most influence on the total cost of ownership. Plans also
useful for comparing alternative designs, equipment
specifications, and/or support service requirements.
Ultimately, luxury service and asset management plans
guide family offices and superyacht support teams
through the budget process and allow decision-makers
to determine which service options give the best value
for money.
Using lifecycle cost information
Disciplined total lifecycle costing methodologies can
assist owners and family decision-makers to make
informed investment decisions about the emotional,
intangible and tangible value of ownership. During
the earliest superyacht requirements planning and
design phase of a new build project, lifecycle costs
are usually based on educated estimates of the cost
drivers identified by the combined efforts of the entire
superyacht project team. The lifecycle costs estimated
at this stage can confer discipline on the owner’s design
and investment decision processes.
As the owner moves through the acquisition and inservice
phases of the ‘superyacht ownership lifecycle’
the full lifecycle costs become more predictable
and more reliable, which means owners can predict
their financial commitments with a greater level of
confidence.
Apply a disciplined approach
Disciplined ownership strategy creates a framework
that allows the owner’s team to achieve luxury service
excellence alongside long-term operational efficiencies
and cost savings by taking into account the true cost of
owning and operating the superyacht throughout the
full superyacht ownership lifecycle.
A disciplined planning process also enables owners
and private staff to assign sensible responsibility,
accountability and reporting requirements to the
superyacht support team, afloat and ashore.
Adopt appropriate governance
When planning for superyacht ownership and ongoing
management, family members and executives need
to establish appropriate governance mechanisms that
allow them to:
• properly manage, operate and maintain the vessel
and support functions
• build a suitable decision support system to evaluate
the quality of service delivered by providers in the
superyacht’s supply chain
• monitor the ability of the yacht and its component
assets to meet the service levels demanded by the
owner and the family
• maintain proper records of the ownership and
operation of the vessel
• implement a risk management system and
internal controls to safeguard assets from misuse,
mismanagement, mistakes, or misappropriation
• create and monitor the vessel’s long term financial
plan to achieve the optimal full lifecycle ownership
savings and costs when making decisions
Bringing it all together
The overriding message for owners, family members,
and their private staff is that a disciplined superyacht
ownership strategy can be a useful internal tool to
oversee and optimise the acquisition, operation and
disposal of a family’s superyacht portfolio over the
entire superyacht ownership lifecycle.
About the author: Simon Cardiff is a strategy and
family office consultant at boutique advisory, Issues
in Superyacht Ownership, providing niche services to
strengthen superyacht portfolio governance, ownership
lifecycle planning, asset management strategies and
luxury service standards. For more information, go to
superyachtownership.com.
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