| We encouraged the revision of their governance structure. Like many small businesses, the Board of Directors was really acting like a Family Council, but fairly ineffectively. The Board included several family members who did not work in the business plus the family executives. We suggested and implemented a Family Council, Family Seminars and Board of Advisors not dominated by family members.
In this case we recommended a series of Family Meetings to improve communication and trust within the family. This served to strengthen the family relationships and resolve family issues. It also reaffirmed the importance of the family beyond the business issues. As is true for many business families, the business was dominating the family.
We recommended a Family Council to deal with all issues that interfaced the family and the business such as family employment, capital investment, long-term planning and a Succession Plan – as this family had already decided to keep the leadership within the family. The fight was about the timetable.
Third/y, we worked with the family to revise and revitalize the Board of Directors. We suggested that at least half of the members not be family members or advisors. We helped the family create a profile of competencies needed for their board members, business professionals who could contribute to the firm’s growth.
In this case, although there is still substantial conflict between family members, all agree that their ability to communicate and solve problems as a team is significantly improved. The family continues to struggle but for the first time in many years, they get together for the holidays and are beginning to enjoy each other. The Family Council is improving family relations, key non-family executives have all commented on the improved functioning of family members and the Board is seen as quite helpful.
Dad continues to steer the ship but has given up several major areas of responsibility. Most important he has set a deadline for his retirement and has begun to make some plans in that direction. The oldest son has made it clear that he wants a stronger leadership position and criteria for leadership is being set. The youngest son has pursued a career outside the family business. |