Owner families should respect formal decision-making processes
Many family businesses have a board of directors and day-to-day management consisting of a mix of family members and individuals with no family ties to the business.
The chairman of the board and several of the contract managers may be part of the owner family, while the rest of the management is not.
In this case, the chair of the board and the managers from the owner family should agree NOT to try to change the company's decisions when the family meets for social gatherings.
If they do so, they undermine certain formal decision-making processes that are necessary for running the company as efficiently as possible.
And they will certainly cause justified frustration at management and board meetings, where participants who were NOT present at the family's latest dinner party may feel undermined.
If co-owning family members are to have a special opportunity to contribute to the board's decision-making processes, this should be done through a formalized family business forum that can accommodate the family and make it a strong partner.
Please contact me if you need help strengthening your formal decision-making processes.
(Note: This post is best read in conjunction with my previous posts on family business forums and business and family gatherings.)
