When people talk about governance in family businesses, it often sounds like something formal—structures, policies, roles. But what I’ve come to understand is that governance is just as much about clarity and trust as it is about rules. It sets the tone for how decisions are made, how conflicts are resolved, and how responsibilities are shared across generations.
In contexts I’m familiar with, governance wasn’t always clearly defined. Roles often blurred, especially when family and business life were so intertwined. This sometimes created confusion, delays in decision-making, or even unintended power struggles. It wasn’t about bad intentions—it was simply the lack of an agreed structure.
Good governance, in my view, provides a shared framework so that everyone knows where they stand. It protects relationships by setting clear expectations and helps the business mature without losing its core identity.
Can governance ever be truly effective if it threatens the informal bonds that hold a family business together?