When we bring together a family and a business, we create an entirely new system from two distinct entities. The key to making that new system, the family business, work is to have in place the processes and policies needed to provide guidance, enforce standards and remove ambiguity in a variety of settings. Through proper governance practices, family businesses develop documented guidelines and strategies that provide a foundation for making sound and unbiased decisions.
The following articles emphasize the importance of developing governance practices that will take the guesswork out of running your business and build employees’ and investors’ confidence in your business.
The family relationships that can enhance commitment to an enterprise and contribute drive to the mission can also get in the way of sound business practices.
In the family business setting, the term governance can take a variety of forms ranging from the very formal to the very casual. But no matter what shape it takes, it is all for the purpose of establishing how the business is run, from hiring practices to communication protocols.
by Leslie Dashew
Families in business have the challenge of complexity which other families do not have. They have many more decisions to make together than other families and may have role confusion: am I dad or employer at this moment?
by Leslie Dashew
Independence, when it comes to boards, allows a director to be objective and evaluate the performance and well being of the company without any conflict of interest or the undue influence of interested parties.
Family business owners contemplating their succession plan must understand that fairness is not sameness.
Ownership is not as simple as dividing all authority and benefits among all successive owners.