The Generation Game Continues

A family constitution provides a clear framework within which to engage and run the business. Many of the family business difficulties we encounter arise initially from small misunderstandings. A family constitution, and the process of creating it, can enable views and expectations to be articulated in an objective manner that accommodates the needs of the business and family members and sets appropriate boundaries. Once it exists there is greater confidence for family members to hold each other to account. While a business may have survived without having a formal constitution, this may be for a number of reasons, for instance, the older generations remain involved in the business or no issues may have arisen, such as, a death or divorce in the family. A family constitution allows the family to consider these issues and other potential points of conflict before they arise in practice and creates a structure for how they should be dealt with. This enables the business to continue to run with minimal disruption, enabling continued success.

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