By: The Mcgowan Group  09-12-2011
Keywords: family business, Governance System

As the family and business grow and become more complex, the need for effective governance structures increases. A well structured governance system promotes harmony within the family and business, improves communication and promotes accountability.

Governance defines a process and structure for decision making within each of the systems involved in a family business - family, business, ownership. Essentially, governance encourages the right people to have the right conversations at the right time.

Effective governance is critical to the long-term success of any organization. This is especially true for family run businesses where the complex dynamics that accompany overlapping family, business and ownership interests can often create conflict where none need exist.

We can assist you to establish or review governance structures such as:

Family Council

Regular, formal meetings of the family to discuss their feelings and opinions on what is happening in the business, the decisions that needs to be made and business issues that may impact the family.

Advisory Committee

An informal group of independent advisors that provides the organization with guidance and counsel on the operations of the company; may assist in times of crisis .

Board of Directors

A formalized board of directors can improve business functioning; outside directors may also benefit a company by providing experience and expertise, objectivity, creative thinking and effective decision making, and flexibility to allow the owner-manager to pursue other business opportunities while still maintaining control.

We can also assist you to create plans and policies that will help guide business and family functioning. Plans and policies could include:

  • Vision, mission, values statements
  • Family Participation Plan
  • Family Council Charter
  • Advisory Committee Charter

Keywords: family business, Governance System

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