Make a family business
The reason to have the family business Council of Administracionla also has a good corporate governance and ownership structure, needs to have a family have a family of successful Government. Effective governance structure of the family, the family business was able to exploit a major competitive advantage: a long term vision is based on transmitting the family heritage from generation to generation. And the shareholders, through the Union of shareholders, and their commitment to the company, supported by shared values, vision and mission.
Today is the main organ of the Government of the family family family business Council. But, what is the purpose of a family Council?, factors that contribute to their creation?, internet business articles what the family Council contribution to the success of the family business?
To answer questions and contribute to the success of the family business, to the Chair of our family business has launched an investigation aimed at learning from the experience of the entrepreneur‘s family have a family Council.
During the first stage of this research, we interviewed 16 Spain entrepreneur family. The analysis of the interviews revealed a number of reasons why multiple-generation family business decided to form a family Council. In the same way, we find different strategies that families use to build channels of communication with the company, as well as the steps to be followed to develop a successful family Council.
The purpose of the family Council
Even if each family‘s unique Council, we found some common ground refers to the purpose of the family Council.
For example, an important goal of the family Council is to promote the unity of the family. In other words, a Board member of family business family come together to discuss, assess, approve and moved to the company’s needs and expectations. This information is sent regularly to the company. Thus, the family Council helps the owner families remain together through vision, mission and shared values.
Another important goal of the Council was the establishment of a permanent family in the family have in various fields related to the family business, in order that its members exercise their role as responsible and committed to the shareholders of the business project. In this sense, our study sample, the family Council assist family members in the creation of a unified voice, and also in the development of the necessary skills of each Member of the family is to contribute from their personal resources for the success of the family business
The successful creation of the family Council seems to be a challenge for the family business. This is because each family member has their own expectations and business needs and family, as well as emotional and professional needs are different. Therefore, the family Council should be a process that considers the specific needs of each family. Also, the family Council is the body that must constantly adapt to the changes, the evolution of the needs of the family and the company.
At the same time different and the like
Most of the family business that has an explicit rules about the purpose and way of functioning of the family Council. However, a qualitative analysis of interviews revealed two types of family councils.
The first class of the family Council (Council of the family type A) seems to have the same attributes as the meetings of the shareholders and its main feature is that it is responsible for managing the problems of family business and at the same time. The aim is to monitor the business decision on behalf of the owner.
Both types of boards from a family (the Board of family type B) focuses mainly on the preservation of heritage, family as well as in improving family welfare and compactness. This kind of Family Council does not have the power of decision on matters relating to the company or the management of the heritage family. In this type of Family Board, matters relating to the management of the company and family heritage is delegated to the Board of Directors, or in other cases, managed directly by the shareholders.
16 family interviewed entrepreneurs, seven of which belong to the family Council of type A, type B owned nine temporary. Family business are more satisfied with the added value of the Council of family family tips