You may have noticed a recent flurry of articles on “Governance” in our Family Business Resource Center. This is intentional. The concept of “Governance” as it applies to families and family-owned businesses is often misunderstood. But, done well, it is perhaps the one factor that most influences success for the family enterprise, which we generally believe means a family that communicates well, is aligned on key objectives, and a business that is well-positioned to flourish for years to come. Governance is also one factor over which we have some modicum of control – with intentional hard work you can build a governance process that best serves your particular family and your particular business. No one size fits all and the governance process must evolve to support changes in family, ownership, management and other factors.
The Family Business Consulting Group recently published Good Governance for Family and Business Success. The article provides excellent insight on governance, including a discussion on the important role that independent directors play in tackling major decisions, and a framework for the allocation of powers among owners, the board and management.
If you’d like to discuss ways in which you can improve your governance process, please feel free to reach out to any member of DWT’s Family Business Team.
Bill Weigand provides strategic counsel to businesses, particularly in the food, agribusiness, manufacturing, and distribution industries. Many of Bill’s clients are multi-generational, family-owned businesses. Contact Bill at 206.757.8164 or BillWeigand@dwt.com.