Governance is built to reflect each stakeholder’s place in a way that meshes with the reality and vision and values of your family business.
Some years ago when I was developing the ideas for my book on family governance, “Family Wealth, Keeping it in the Family”, I tried to establish rules that would parallel the three branches of most democratic governments, legislative, executive and judicial.
Creating and working within meaningful governance structures in your family and in your business are keys to success for families with shared assets.
This is a summary of structures to optimize decision-making and communication for families with shared assets.
The RACI model is a framework that can be used to outline roles and responsibilities throughout the company and for specific projects.
During many years of serving as an Independent Director on my sixteen years of serving five different family business boards, I’ve developed five best practices to share with fellow family Directors.
This spreadsheet tool provides clarity about who might have the ultimate say, and which decisions are collaborative among two or more individuals.
The Board of Directors is where the will of owners turns into action. It is also one of the most challenging steps to take for a business owner as they may be advised to do things differently.
Governance structures in family companies must be designed to safeguard the long-term interests of family shareholders by ensuring the growth and continuity of the enterprise and promoting the family’s harmony and welfare.
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