Family Business Governance

The I Ching - or Book of Changes - referred to by both Confucius and Laozi, though its author is unknown, states: "When the family is in order, all the social relationships of mankind will be in order." The love between a man and a woman is complex. When the family expands, a large group of family members begin to interact. This leads to even greater complexity in the family unit. Each family member has a particular personality and point of view as well as particular preferences, norms, attitudes and values. Of course, providing education and training and setting a good example can contribute to family unity over and above other factors. However, perfect synergy is difficult to achieve. The family can be helped along by a strong ability to govern itself and manage any discrepancies in order to avoid generating conflict. If the family also shares in a business project, which involves a set of permanent decisions affecting people and common economic assets, the need for according standards and performance criteria seems all the more obvious. On the other hand, interpersonal relationships within the family need to be fostered and carefully maintained, because no one chooses his or her family. Unlike our partners, with whom we choose to share our lives, family is a given.