Family Business Advisory Board Structure

Family Business Advisory Services

The Family Business Management is way beyond a business. It is has dependency yet exclusivity of family, ownership and the business. The real challenge is to integrate and synchronize the family values, culture and policies to the business vision, goals and continuity for a successful business over generations.

Globally, more than 70-75% of the businesses are family owned, controlled businesses or family managed. Hardly 10% of the family businesses move on to the third generation, due to several internal challenges.

Challenges faced in Family Business Management

Lack of alignment between personal and family business goals, creating deadlocks on strategy, investments and future action plans
Ongoing conflicts between family members delaying decision making in the family business
Hazy role definitions of the family business owners and lack of accountability creating ambiguity within themselves and the teams with regards to their job roles
Inability to provide great career opportunities to the next generation due unclear clear growth paths for the new family entrants in the business
Little or no delegation of work to the next generation of the family, making them struggle for creativity and freedom to operate
Lack of a concrete succession, ownership and business governance plan for the business to survive generation to generation
Resistance to professionalizing the business by the older generation for fear of loss of control and making business secrecy public
Inability to distribute dividends to shareholders, create reserves as agreed, due to interpersonal issues
Inability to diversify the earnings to other businesses and reduce risk
Poor generation and protection of wealth for the next generation family members

Family Business Governance

Family Constitution For Family Business

The Family Business Management challenges need to be addressed by taking the following steps:

Creating suitable family business models, good corporate governance through a board of directors and an executive committee
Agreeing upon and following a constitution through a family council
Having a visionary succession plan for the business

Family Council for Family Business

Following the above methodology ensures extremely high probability for business continuity from generation to generation.

It is imperative to professionalize the family business by:

Defining clear family and business objectives
Creating distinction between family value systems & policies, business values & governance
Having a well defined Family Strategic Plan for the current family members in the business and the next generation family members
Creating, executing and sustaining the Strategic Business Plan for the business
Ensuring good governance through Executive Committee and or Board of Directors
Defining and following a Succession Plan both for the management and the ownership of the family business

Our team of highly experienced family business coaches’ assist in family business management by:

Ensuring involvement and effectiveness of the family members in the business
Defining remunerations, perks and other benefits for members in the business
Creating business structures, roles, responsibilities and reporting mechanisms
Creating a visionary Board of Directors