Protocol: Regulation or Framework Agreement

Description

When a family business begins to manage the relationship between the family and the business it owns, it must not (or should not) try to start regulating issues relating to work, money, power, or status without first making certain that all members reach a consensus on these four questions: " Why do we want to form a family business? " What family business model would we like to have in terms of the roles that family members will take within it? " What should we expect of our business? " Under what circumstances would we be willing to sell, wholly or in part, our stakes in the family business?

Learning Objective

Helping to clarify the idea that the family protocol is more a process than a finalized product, and that to start this process it is essential to think in terms of the family's vision, mission and values.

Keywords

Family Business Leadership Strategy