Family Meetings

Tuesday 16 January, 2001

by Lucio Dana

Family meetings are one of the two most important steps a business owner can take to ensure the continuity of the family business.

It has been argued that there are a number of very important reasons for holding family meetings. These gatherings

• bring family members into business discussions;
  
• help to challenge members to communicate and to face their differences rather than avoiding or ignoring them;
  
• help to build stronger families and businesses;
  
• assist families to plan for the future;
  
• help children in appreciating important family values;
  
• open up discussions concerning the succession process;
  
• preserve family values, traditions and history;
  
• can be used to professionalise the business;
  
• are useful for managing relations between the family and board of directors;
  
  demand a total family effort; and
  
• help to recognise and resolve conflicts before they become crises.

Family meetings have the potential to bind the family and business particularly during difficult times. These meetings also provide young family members with opportunities to develop and display skills including leadership, conflict resolution, sound communication and how to manage meetings.

Unfortunately, few family businesses hold family meetings. Not holding meetings can be attributed to not making the time, not being able to see the benefits, a need to keep information confidential, and a fear that issues raised in such a context might lead to family conflict or turmoil.

Family meetings are similar to board meetings in many respects. They require careful planning, preparation and forethought, particularly when it comes to assembling agendas, chairing the meetings, and sticking to the agenda. Agendas are prepared in advance, meeting dates and times are established, and notes or minutes are taken. These notes help establish a sense of continuity and are a valuable source of information for members who cannot be physically present or for those who are not active in the business.

As an example, the first family meeting might take the form of a two-day retreat, giving everyone a chance to get away from the business and to focus on issues at hand. A facilitator, such as an impartial mediator, might conduct and keep the meeting focused on its purpose. The facilitator can also ask hard questions, assist participants and help manage any conflict.

It has been suggested that family meetings should:

• allow members to take time out to talk about important issues;
  
• provide members with feelings of involvement;
  
• encourage the dissemination of information in a fair and formal manner;
  
• enable members to share dreams and concerns;
  
• provide a forum for discussion and open communication;
  
• help to improve business decisions;
  
• promote family harmony and co-operation; and
  
• lead to the development of a shared vision.

Possible agenda items for discussion might involve exploring:

• the advantages and disadvantages of having a family business;
  
• the history of the business;
  
• individual dreams, goals, plans and aspirations;
  
• developing a family mission statement;
  
• family values related to the business;
  
• the state of business affairs;
  
• the family’s financial needs and plans;
  
• conditions under which the family might sell the business;
  
• the role of the business in the community; and
  
• issues about philanthropy.

Source:ceoonline.com