The Importance of Governance in the Family Business

While the functions of good family business governance stay the same as the family and the business grow, the forms these governance possesses take may change. As the business passes from the entrepreneurial stage through the second and third generations of family ownership and beyond, the family organization may evolve from informal talks over the dinner table to a family assembly guided by a governing body such as a family council. Similarly, the board may evolve overseeing various units of the family business portfolio.”

  • Craig Aronoff Ph.D. and John Ward Ph.D.

Family business governance is one of the most difficult processes to implement. However, once it is accepted by all family members, the business can truly begin the transfer of leadership from one generation to the next. It is vital to make sure that the proper steps happen at the proper times because if the appropriate foundation is not laid down and agreed upon, it will spell disaster at the first storm it encounters.

Make sure to attend our November workshop on “Family Business Governance” by Peter Johnson, on November 17th, and learn how to avoid the pitfalls of a leadership change.

To save you and your family members a seat and enough food, RSVP here: http://business.fullerton.edu/Center/FamilyBusiness/#WorkshopRegistration

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About csuffamilybusiness

In 1995 Cal State Fullerton, the third largest business school in the nation, formed the Center for Family Business to assist family businesses in recognizing their common problems and in finding solutions to the unique issues that confront them. The Center's mission is to use education to help family businesses in our region grow and prosper and to keep harmony in the family.
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