Every sentient organism needs some sort of control centre to direct and manage its functions and to help ensure its survival. The more complex the organism, the more capable (intelligent) the control centre needs to be. A business family is a complex sentient system, which makes it a very complicated organism. As such, it needs an
Every sentient organism needs some sort of control centre to direct and manage its functions and to help ensure its survival. The more complex the organism, the more capable (intelligent) the control centre needs to be. A business family is a complex sentient system, which makes it a very complicated organism. As such, it needs an very intelligent control centre to direct and manage all of its operations and needs.
This is what a Family Council is designed to achieve.
A Family Council is like a Board of Directors for a family, with a sole focus on family-related matters, including the family’s values-based objectives for its business enterprises, expected returns and benefits, and business ownership.
It has a key Stewardship function in relation to maintenance of the family’s legacy, and a key disciplinary role for regulating interactions between the family, family members and its business interests.
The Family Council is the supreme representative, governance, disciplinary and decision-making body for a business family.
All major bloodlines should be represented on the Family Council, to ensure that their views are expressed and their interests, within reason, are protected.
Family Councils are not legal entities, so they don’t have any legal standing. Instead, they have authority delegated to them by the family(s) they represent. This authority should be reflected in some form of Charter that covers: Objectives, Processes, Roles, Responsibilities, Authority and Accountability.
The Family Council should have regular scheduled meetings that follow agreed agendas, like a normal Business Board. Formal roles should be allocated, including Chair, Secretary / Convener, Minutes Scribe etc. Proceedings are not usually as formal as they would be on a comparable business board, but should have appropriate structure, follow due process, and be subject to adequate levels of discipline.
Each meeting should result in Minutes and a Task List, or Action Plan, that allocates tasks to individuals, along with agreed resources and completion deadlines.
Each meeting should therefore review past Minutes and Task Lists to ensure that the planned and approved business of the family remains on track, and to identify any need for additional support to get tasks completed. In this way the Family Council can be a very useful testing ground for next generation aspirants, whose commitment to the family and effectiveness will be placed on open display, for assessment.
The Family Council is also responsible for facilitating the development of a long term Family Plan (covering at least the next 25, and usually 50, years). It should also monitor progress and performance against The Plan.
Family Plans should be supported by family policies. Eventually these should be developed into a Family Constitution to manage relationships and interactions between the family, individual family members, and the business.
For families taking their first steps towards planning long term sustainability, the creation of a Family Council is a foundation level initiative. For families that have been around for awhile, formalising their Family Council proceedings often indicates a desire to adopt a more formal and structured, best practice approach towards protecting the family’s legacy.
For families faced with, or already undertaking a succession process (generational transition of ownership and leadership), having an effective Family Council can provide support to help manage the process in an orderly and democratic fashion.
For help establishing a Family Council, please call, or contact: The Solutionist Group. very intelligent control centre to direct and manage all of its operations and needs.
This is what a Family Council is designed to achieve.
A Family Council is like a Board of Directors for a family, with a sole focus on family-related matters, including the family’s values-based objectives for its business enterprises, expected returns and benefits, and business ownership.
It has a key Stewardship function in relation to maintenance of the family’s legacy, and a key disciplinary role for regulating interactions between the family, family members and its business interests.
The Family Council is the supreme representative, governance, disciplinary and decision-making body for a business family.
All major bloodlines should be represented on the Family Council, to ensure that their views are expressed and their interests, within reason, are protected.
Family Councils are not legal entities, so they don’t have any legal standing. Instead, they have authority delegated to them by the family(s) they represent. This authority should be reflected in some form of Charter that covers: Objectives, Processes, Roles, Responsibilities, Authority and Accountability.
The Family Council should have regular scheduled meetings that follow agreed agendas, like a normal Business Board. Formal roles should be allocated, including Chair, Secretary / Convener, Minutes Scribe etc. Proceedings are not usually as formal as they would be on a comparable business board, but should have appropriate structure, follow due process, and be subject to adequate levels of discipline.
Each meeting should result in Minutes and a Task List, or Action Plan, that allocates tasks to individuals, along with agreed resources and completion deadlines.
Each meeting should therefore review past Minutes and Task Lists to ensure that the planned and approved business of the family remains on track, and to identify any need for additional support to get tasks completed. In this way the Family Council can be a very useful testing ground for next generation aspirants, whose commitment to the family and effectiveness will be placed on open display, for assessment.
The Family Council is also responsible for facilitating the development of a long term Family Plan (covering at least the next 25, and usually 50, years). It should also monitor progress and performance against The Plan.
Family Plans should be supported by family policies. Eventually these should be developed into a Family Constitution to manage relationships and interactions between the family, individual family members, and the business.
For families taking their first steps towards planning long term sustainability, the creation of a Family Council is a foundation level initiative. For families that have been around for awhile, formalising their Family Council proceedings often indicates a desire to adopt a more formal and structured, best practice approach towards protecting the family’s legacy.
For families faced with, or already undertaking a succession process (generational transition of ownership and leadership), having an effective Family Council can provide support to help manage the process in an orderly and democratic fashion.
For help establishing a Family Council, please call, or contact: The Solutionist Group.