O'Reilly logo

The Family Wealth Sustainability Toolkit: The Manual by Fran Lotery, Fredda Herz Brown

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

THE SHAPE OF GOVERNANCE: A THOUGHTFUL, INCLUSIVE PROCESS

How a family approaches development of its self-governance can vary. Everyone who has to live with the decisions of the enterprise should be involved in making them. The net for participation should be cast wide and deep. While this may seem unwieldy, getting everyone on board during the development process can help forestall difficulties later on. The first step for most families and their advisors will be to define the values and mission for the enterprise. The right governance process for a family that shares assets will be one that enhances the best of the family's dynamics while counterbalancing its most negative ones.

This development phase of governance can engage a family for anywhere from 6 to 18 months. This may seem like a long time, but once completed, the plan is likely to truly reflect the family's values and their needs. Goals of the family and the importance members place on different functions for the enterprise are usually carefully weighed. The Family Wealth Sustainability Index was designed to assist families in establishing a baseline of where they are on their path to sustainability and where they believe they need to go to achieve it. The data collected by the Index can point the way to the type of governance structures and processes that are missing and can suggest what structures and policies are needed. Such overall assessments take time and require dialogue within the family. A simple family meeting ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required