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As your family business grows beyond the reach of the founder a well-functioning governance system pays significant dividends
Embed family values with strategic governance frameworks
Boost family harmony, aligning vision with strategy
Prepare and empower the next generation's leadership
Governance training gives stakeholders and management a consistent framework to operate in. Once your stakeholders understand and support the concepts of good governance, your family business will be on a focused mission to achieve your vision.
Hear from our success stories
Randall Yoast
Sandra Hess
Meet LeadershipOne’s Governance Training Series
A comprehensive five-session journey tailored to empower family businesses: from foundational governance overviews to intricate board mechanics, paced perfectly to your business's unique readiness.
Contact us today to see about starting a Governance Training program for your organization.
As the family moves beyond the founder, to second and third generation ownership, the proximity of owners to the business grows more distant. It is common to see third generation family businesses be primarily run by non-family managers. How does the family and shareholders assure that its values are embedded in the business, and that the operations are run effectively? An effective governance system establishes the framework within which the managers operate the business, establishes and reinforces the family business’s vision and core values, provides regular feedback and holds managers accountable for results.
Maybe. Research on S&P 500 companies has demonstrated that the best performing family businesses (yes, family businesses can be public companies) have a majority of independent directors. However, each family business is unique and at different stages in their development. The first step for many family businesses is to get their board of family members well organized and operating as a board. Many then add independents as advisors and transition to incorporate independents as fiduciary board members. LeadershipOne can help your family business assess its current position and create the right path for you.
We highly recommend that as many shareholders and family members participate in the process as is feasible. If you have less than 10 shareholders, it is usually possible to get all to participate in training, when scheduled in advance and easily accessible for the shareholders (including virtual participation). The greater the number of shareholders, the more challenging it is to make the logistics work for everyone. LeadershipOne will assist you in assessing who should participate in training and how best to capture their input as your family business moves forward with its governance journey.
In a word, YES. A family business is a legal structure that has recognized processes, rules and regulations it must comply with, governance being one. Bylaws (corporations) or Operating Agreements (LLCs) or Partnership Agreements (LPs and GPs) provide the authority for governance and specify the parameters for the business. A family is not such a formal entity, so the “rules” are more fluid and family members must voluntarily agree to be bound by them. Many families adopt “Family Charters” as their governing documents.
LeadershipOne has developed a five session model for its governance training. This includes: an overview of governance and roles; a review of the existing governing documents for the family business(es); clarifying mission/vision/values; managing interfaces between the board, management, shareholders and family; determining board composition; and the mechanics of the board. The series can be conducted in as little as six week, or as long as six months, depending on the readiness of the family business and its shareholders.