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:
Code of Conduct
Decision Making Process
Family Employment Standards
Education & Skill Enhancement Policy
Conflict Resolution Mechanism
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:
More Unity in the Family
Less Opportunity for Conflict
Healthy Inter-Family Relationships
Reliable Transfer of Information
Sound Decision Making
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:
Family Businesses that aren't focused on internal problems have the advantage.
Structure creates the environment for better performance and results.
Governance aligns stakeholders, improves transparency & creates common ground.
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:
Uncover and identify the unique needs of your business family.
We will design a custom governance plan that aligns with your needs.
We'll show you how to put your plan into action.