Family Business Solutions from Family Business Advisors.
FAMILY BUSINESS
COACHING and CONSULTING
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Family Business Governance
When we first suggest that you take a look at your Family Business Governance, the response we often get is
Why?
Many Family Business Owners question the need for internal business structure like Family Business Governance.
But many issues in a Family Business are the result of a lack of structure within the business. And these issues can often be avoided entirely when good Family Business Governance principles are implemented.
The Rewards of Family Business Governance:
COMPETITIVE ADVANTAGE
Family Businesses that Are Not Focused on Internal Problems have the Advantage.
LESS CONFLICT
Governance Aligns Stakeholders and Creates Common Ground.
INCREASED ENGAGEMENT
Structure Creates the Environment for Better Performance and Results.
SHARED PURPOSE
A Sense of Unity and Togetherness Built on a Common Vision.
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 Policies
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 Family Governance?
Elements of Family Business Governance
Benefits of Good Governance
Family Business Governance - Doesn't Need to Be Complicated
We like to take a 'Keep it Simple' approach when developing a Family Business Governance program.
There is no point adding layers of bureaucracy to a Family Business. Part of your advantage is running lean, being adaptable and making quick decisions. We don't want to change that.
Our system simply creates an environment where all of those positive attributes in your Family Business can continue to exist in an even more organized and productive fashion.
Have Question About Governance? Just Ask.
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.