Strategies For Coping With Roles/Relationship Issues In Family Owned Business

Family Retreats:

A gathering of family members, usually at a remote location, to discuss family business matters.

The agenda can include one, some or all of these: Recognize family member’s different personalities: have defined roles and know everybody’s strengths; seek out everyone’s input; do something your family feels good about; designate down time; have specific workspace, or two

Use of an outside facilitator may be necessary.

Guidelines:

Ø  Set a time and price.

Ø  Distribute an agenda prior to the meeting.

Ø  Plan a schedule in advance.

Ø  Give everyone a chance to participate.

Ø  Keep it professional.

Family Councils:

Family councils are necessary from time to time. In Nigeria , a tribe most famous for family councils is the Igbo . An organized group of family members [councils] who gather periodically to discuss 

family-related business issues can accomplish the following:

Ø  Represent the family to board of directors

Ø  Useful in developing family harmony

Ø  Increase understanding of family traditions and interest

Family Business Constitution:

A fall out of family retreats/councils may be a family business constitution much like a memorandum of associations, which must include:

Ø  A statement of principles intended to guide a family firm through times of crisis and change.

Ø  Family protocol.

An extension of the constitution incorporating additional agreements that includes:

Ø  Ownership agreements [inheritance and buy-sell compacts]

Ø  Governance and personnel policies

Ø  Use of business resources by family members

Ø  Conflicts of interest and noncompetition agreements

Ø  Codes of conduct