Informal Rules

The governance of our family business is primarily informal; important decisions are made within the inner family circle, frequently through informal discussions rather than formal meetings. The lack of a formal board and written policies maintains flexibility but also introduces irregularities. Misunderstandings, a lack of clear roles, and unequal power dynamics can result from this informal governance, particularly as the company expands and more family members become involved. Tradition and trust keep things together, but accountability and long-term strategic planning are hindered by unclear frameworks. We are aware that formal governance is necessary, but change is sluggish and frequently opposed.