There comes a time in multigenerational family businesses when every family realizes “what got us here won’t get us there.” As the business grows, along with the number of family stakeholders, the complexity of roles, expectations and change leads to the need for more structure and a safe place for family members to be heard.
Family councils create an inclusive, structured environment to discuss matters of the family and support the family’s evolving relationships with one another and with the business. Guided by a charter and ground rules such as confidentiality, respect and active listening, family councils serve to align, organize and educate the family.
Think of a family council as preventative medicine for your enterprise. Just as couples therapy works best before divorce papers are drafted, family councils act proactively to establish communication protocols (ideally) before conflict erupts. They create a formal yet intimate forum where family members — whether they work in the business or not — can voice concerns, clarify their values and shape the family’s collective vision.
Even the most aligned families can shift from harmony to discord in an instant. The most successful family businesses understand this: unaddressed tensions don’t disappear — they metastasize. Family councils are formed when family members acknowledge that good intentions aren’t enough; they need structure and process to translate love into effective collaboration.
You can’t afford to treat family governance as optional. Just as you wouldn’t ignore a persistent cough, don’t ignore the need for structured family dialogue. In family business, the health of relationships isn’t just personal — it’s your most critical asset!