Family businesses of all sizes and in all sectors are recognising the need for professional governance structures to be put in place to safeguard their businesses going forward, and to ensure that everyone is working to the same set of agreed goals and values.
Whilst the degree to which a constitution will be needed tends to vary according to the size and age of the business, it is recognised that all family businesses can benefit from considering the needs to adopt policies in certain areas.
Successful families running successful family companies have cracked the core family business problem. They’ve arrived at policies that strike the right balance between the best interests of the business and the well-being of the family – and their agreed position on this is generally recorded in a written family constitution.
Peter Leach, leading family business expert, shares his thoughts on the content and role of the family business in a thought provoking article. Could you benefit from a family constitution in your business?