Wednesday, February 29, 2012

The Importance of Governance in a Family Business

 CONTINUITY
FAMILY BUSINESS CONSULTING 
US/CANADA: 877-925-5149 INTERNATIONAL: 1-978-925-5149
ContinuityFBC.com
 
The importance of governance, no matter how small the company, cannot be overstated.  

Formal boards, executive committees, and advisory boards develop and articulate policy, objectives and strategy.  They provide strategic guidance and are the most effective vehicle for resolving businessrelated conflict between managers, owners and other family members.  

Developing effective governance for a family business involves appropriate procedure (attending to the right priorities, operating by the right rules) and good structure (selection of the right people and roles).

Early stage family businesses may be struggling to develop good governance practices and may be wary of creating formal boards or engaging independent board members.  Helping these stakeholders understand and practice good governance as a first step towards board development can be enormously helpful especially as part of a succession planning process.  

Creating a first board, while retaining control, is a big step for many founders of family businesses and one which benefits greatly from independent advice. 

For more information on Governance and Board Development, visit ContinuityFBC.com.

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