Growing family businesses need to create new governance structures to ensure the alignment of family expectations with the needs of the business, as well as accountability. As the family and business mature, and ownership/management functions are separated, the role of the family is increasingly one of governance. Alignment of family and business governance processes among family, owners and management is therefore an important family responsibility.
This case helps owners, management and boards appreciate the role of family and business governance in decision making and accountability. It also encourages business families to heed the challenges they face in planning and decision making. Family governance is much more complex than business governance because the structures and processes involved depend on the family’s values, characteristics, shared experiences and business situation.
- family business
- next generation
- board of directors