WHAT IS A FAMILY COUNCIL?
The Family Council is a regular meeting of the Family Members who compiled the Family Charter. Some family members may be deemed ex officio in the Charter, meaning that they can be represented fairly at the meetings via other Family Members and feel comfort in being protected by the principles outlined in the Charter.
The Council framework exists in order to:
- Develop and maintain alignment for the company vision and mission
- Create a commitment to the family being a ‘Family in Business’
- Ensures the Family Charter provides a foundation for the Family Business Enterprise
- Creates a framework to ensure the business’ legacy
- Provides financial security and lifestyle for current and future family members
The purpose of the Family Council is to create a forum to assist Family Members in retaining a cooperative and educated approach to resolving challenges and issues within the family and within in the business. This also gives them an opportunity to review the Family Charter on a regular and agreed basis. The importance of a Charter grows as the ownership migrates from one generation to the next. With each transition it becomes more important as relationships can sometimes become complex and interests can easily be conspired to cause misunderstanding and conflict.
A Family Council operates best when it is either Chaired or co-ordinated by an independent non family member. A qualified, experienced Advisor who understands the family dynamics and the strategy of the organisation.
It creates the opportunity to clarify the relationship between the Family Council, the Shareholders, Board of Directors and the Management Team in a unified approach.
The key outcome for the family of engaging in this forum is the ability to stay true to their core family values in life, business and family.
I know for certain now that embracing BCS’s tools, techniques, systems, strategic thinking and people management have allowed us to get to where we want to be in half the time.
Stephen Harvey, CEO Brickfields Hospitality Management