Harmony in Family Governance, including effective family business succession planning, is key to preserving a family's lasting heritage while ensuring business prosperity.
It effectively addresses various challenges, including misalignment among family members on the business mission, confusion about the business purpose and reason of existence, concerns on the founder’s and family business succession planning, misalignment on share valuation in the occurrences of family member exit, and inequality in the application of HR policies for family members joining the family business.
The benefits of fostering family legacy through an effective family business succession planning & harmony through the development of a family constitution are profound. A family constitution is considered “a word of honor” for family members and serves as a guiding document, reflecting the founders' values and reminding generations of the business's significance in their lives and the community.
It governs the delicate balance between family matters and business, ensuring that one doesn't negatively impact the other. Within the constitution, various chapters cover exit policies, dividends, family employment, health funds, charity, new business ventures, education, family expenditures and many more, all of which are highly sensitive topics that require delicate facilitation to safely reach consensus that accommodates for the different mentalities and points of views and blend the gap between the different generations in the family.
