Family businesses need governance to stay on right track

Governance is hot.

Governance is hot.

Shareholders, managers and business advisers are demanding improved governance of (typically public) companies by strengthening their boards and developing more responsive shareholder relations.

But what happens when your board of directors is also your family?

The governance of a family business is more complicated than for nonfamily owned companies because of the central role of the family that owns and typically leads the business.

In a family business, the business, family and ownership group all need governance.

Families without some sort of governance often get messy, and the lack of governance is a major cause. Love, power and money can be a powerful force to grow the business, but can just as easily blow it up.

Governance helps family businesses make better, more informed decisions. Good governance:

Generates a sense of direction, values to live or work by and well-understood and accepted policies that tell organization members how they should behave or what to do in certain circumstances.

Brings the right people together at the right time to discuss the important things.

Measure the effectiveness of your governance system by these outcomes, not by the boards and councils put in place.

LVB Business Events

2019 Health Care Symposium

Thursday, August 01, 2019
2019 Health Care Symposium

2019 CFO of the Year Awards

Wednesday, September 11, 2019
2019 CFO of the Year Awards

HR Symposium

Wednesday, September 25, 2019
HR Symposium

2019 Fastest Growing Companies Awards

Wednesday, October 23, 2019
2019 Fastest Growing Companies Awards