Strengthen Your Family Business With a Family Governance Plan

Most family businesses take on the characteristics of their founder or founding family, especially in their formative years. This changes as the company grows and the founder begins to transition ownership and control to future generations. To guide the business succession transition forward on a successful path, there needs to be a family governance plan to establish a framework for joint decision-making among family members based on shared values, a common mission or purpose, and a collective vision for the family’s future. Family meetings—whether they are in the form of a family council, family assembly, family association, or owner’s council—will play an important role in the governance process and strengthening the family business.