I once heard from a family business consultant that there are just three things that cause conflict within a family business: death, sex, and money. No matter the cause, eventual conflict is inevitable and a strategy for the future a must.
Gary Deans, UK Head of Family Business, explains why governance is so important to family businesses.
“Governance is extremely useful when there are major events in the family’s history or the business’s history. That might be succession, retirement, divorce or a new marriage. The governance framework allows the family to be able to sit down together and talk about what they want to be able to happen next.
The absence of conflict is an ideal time to be able to address family governance. By building that roadmap now when no conflict exists, families can get around the table with a cool head and think, how do we want to be able to address difficult issues in the future, should they arise.
Family First addresses the issues of employees within the business, the families themselves and the next generation succeeding to the business. The governance framework that we approach this with allows the family to think maybe, three, five years down the road, and thinking about what might happen within those different communities and helps resolve the discussions around what might happen, how to preserve wealth in the future and how to make sure the business continues to be really successful.”
– Gary Deans