Family business governance

Family Business Governance

Creating Structure is Good for Everyone.

Family Business Governance

For many family-owned business, governance is a strange term.

Many family businesses, are of the belief that they don't need any type of governance because they are family.  And as a family, they know how to do things and understand what other members of the business family need.

Nothing could be further from the truth.

A sound Family Business Governance Program creates an environment that ensures that all family stakeholders are operating under a common and clearly understood structure.

 

Can you imagine what chaos a hockey game would be if it were played with no clearly stated rules?  The same chaos and confusion can occur in a family business where no clear rules have been established.

 

Without a company wide structure that governs all levels of the family business operation, a breakdown of communication, transparency, and trust is likely to occur.  

 

Family Business Governance is a clearly stated set of policies and guidelines that define and organize how the family business will operate.

These guidelines apply to both family interactions and business operations.

Family Business Governance isn't always the same for every family-owned business.  The levels and complexity of a family governance system depends on whether your business is a first generation business with only two family members working together, or a 5th generation family business with dozens of family stakeholders.  

However, the goal of any governance system is to set guidelines, improve communication and reduce the likelihood of conflict.

Common elements of a Family Business Governance Strategy include:

Family Constitution

Family Council

Code of Conduct

Decision Making Process

Family Employment Standards

Remuneration

Education & Skill Enhancement Policy

Conflict Resolution Mechanism

Formalized Communication 

Regular Meetings

Philanthrophy

There are countless benefits to implementing a strong family business governance framework.  Good governance helps to unify the family and provide direction to the business operation.  

Specific Benefits Include:

Better Communication

More Unity in the Family

Less Opportunity for Conflict

Healthy Inter-Family Relationships

Reliable Transfer of Information

Sound Decision Making

Increased Transparency

Higher Efficiency

Establish & Maintain Trust

Why Do You Need Governance in Your Family Business?

What is it?

Elements of Family Business Governance

Benefits of Good Governance

The Rewards of Family Business Governance:

Competitive Advantage

Family Businesses that aren't focused on internal problems have the advantage.

Increased Engagement

Structure creates the environment for better performance and results.

Less Conflict 

Governance aligns stakeholders, improves transparency & creates common ground.

Shared Purpose

A sense of unity and togetherness built on common values and vision.

Family Business Retreat

Get your Family Business Governance kick-started with one of our professionally guided and customized Family Business Retreats.

Generally conducted over a 2-4 day period, in a neutral off-site location, you will:

DISCOVER

Uncover and identify the unique needs of your business family.

DESIGN

We will design a custom governance plan that aligns with your needs.

IMPLEMENT

We'll show you how to put your plan into action.

Toll Free 1-888-727-9992   or   403-727-9992
Calgary
2832 34th Street. Calgary, AB T3E 2W9
Red Deer
5214 47 Ave #102, Red Deer, AB T4N 1X2
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Alberta Business Builders was established in 2010 to meet the ever growing needs of business owners and family-owned business.  We specialize in business management consulting, family business advising, family business succession planning and executive coaching & development.  We focus on helping you eliminate the challenges of People, Process and Profits so you can enjoy a prosperous business and a healthy and fulfilled life.  

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