There should be multiple definitions to accommodate the wide range of unique family businesses in existence – large and small, first or fifth generation. In its most simple terms, governance is a set of processes for making decisions. Family business governance, then, refers to the processes in place to govern decisions made around the family, the business, and the intersection of the two.
Frequently, governance is associated with complex committees, policies, and procedures, which may be appropriate for families and family enterprises of a certain size. However, in other cases, family business governance is a simplified, disciplined process that is well-structured and balanced.