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Family Business Councils: What Role Should They Play?

Members of the Family Busines Council are discussing which topics for the next council meeting.As time goes on, the role of the family business council will change. That can occur as a planned intention or as a reaction to new problems. Like any company, it’s best to account for perceived threats before they happen. Change can become turbulent when members don’t understand their roles.

In this blog we offer a few instances where we can offer clients with family business succession planning. Discover how Positively People supports your brand and the family governance behind it.

 

How Should You Incorporate Your Family Business Council?

It’s rare for the family business council to maintain the same level of influence year after year. They may have enjoyed power in the past, but it might not feel sustainable for everyone. These members may have held significant power as the business emerged, but as time goes on things do change. It’s important that they only take on matters that are relevant to the family today.

There comes a time when family business councils begin holding the firm back. It’s best to start continuity planning to avoid struggles between factions.

Determining Employment Policies with Family Business Councils

One of the most vital roles a council plays is determining employment policies. Specifically, how family candidates are viewed and considered for certain positions. Does your business require a college education or a specified amount of experience? Or is having the same last name enough to access the board?

These matters should also include how many family members may serve at once. That aspect of planning family business succession usually takes a while to complete.

Family Business Councils and Improving Your Training Capabilities

One technique that not many boards think of is learning from other family business councils. By inviting a representative from a similar organization, relatives can often learn from them pretty quickly. These guest teachers can cover various topics, from financing and debt to competitive risks. Usually, hearing from an independent source can take root faster than from a direct relative.

This process can also go smoother when someone on your board knows the guest, as it creates trust. It helps expand your family’s sphere of influence without struggling through mistakes.

Have Your Family Business Council Manage Special Events

Family events can sometimes fall by the wayside when future generations take over the business. There simply aren’t enough hours in the day for board members to manage everything.

Instead, a beneficial role for family councils is planning holidays or special occasions. They can incorporate the business end by also including them in gatherings. Convert a boring quarterly meeting or schedule events for long weekends or simply plan a cookout. Giving younger relatives activities to enjoy can preoccupy them during the corporate aspects.

Contact Us and Utilize Your Family Business Councils More Effectively

There are many ways that a family business council can support business operations. Unfortunately, it isn’t always clear how to best utilize your resources. As an experienced family business consulting firm, you can rely on our expertise. We help numerous companies across many fields in securing their legacy.

Discover what our family business advisory team has to offer. Choose Positively People for trustworthy guidance and support and contact us today.

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