Establishing a governance framework for your family business can help improve business performance and satisfy the expectations of all family members. Indeed, this step may be essential if the business is to keep on producing the rewards the family has come to expect. This stage is often reached when the founder of the business relinquishes day-to-day control of the business or when it reaches a size and complexity unsuited to informal and unstructured management styles.
Continuation of family ownership and control can be fraught with difficulty. In business, as in life, families don’t always see eye to eye. Family members can have different expectations and ambitions for the business. Family disputes can paralyse management of the enterprise, endangering ongoing family control and, sometimes, the very existence of the business.