A facilitator of coordination between family business owners and warehouses, trying to help family businesses come to an agreement on issues of managing family affairs and managing business operations to ensure continued business growth. This effort requires the development of a successful and clear corporate governance framework that separates business management from mitochondria and provides a "normative process" for family members and family business owners to resolve conflicts. Corporate governance can take the form of family councils, family offices, owners' councils, advisory boards, etc. We will use our global knowledge and experience to advise on appropriate governance frameworks and determine the terms of reference of the above bodies. Based on the evaluation opinions on business strategy and drug structure, we will help companies select independent directors and independent consultants based on their ability characteristics, so that the corporate governance mechanism can actively play a role and regularly evaluate its effectiveness.

Establish PTC to maintain equity independence The principle of independence of trust property is an important feature of trust and the basis for the flexible application of trust mechanisms in various fields. The founder of a family business uses trust to design the property rights of the family business, which can give the family business equity independence and avoid risks such as forced inheritance, division due to marriage, or execution due to debt, thereby achieving the purpose of protecting and inheriting the equity of the family business. Use VISTA to divide and conquer your home and business As mentioned above, PTC is established by family members, but if preservation arrangements are not made for the equity of PTC, the equity will still be at risk when the PTC shareholder dies, gets married, or becomes indebted. By holding PTC equity in the "VISTA Purpose Trust", on the one hand, the aforementioned risks can be avoided, and at the same time, it can lay a foundation for family and corporate governance. Family business is a special form of business, and its greatest particularity is the widespread penetration of family influence in corporate governance. Family and business have different interests, rules, values and structures. A balanced approach to the two systems is the basis for maintaining healthy family relationships and the longevity of the business. Trusts can not only achieve equity independence in the ownership design of family businesses and prevent personal risks of family members from affecting the family business, but they can also lay the foundation for good governance of family businesses and families through the mechanisms of PTC and VISTA purpose trusts, helping the first generation to build a century-old business. foundation.

1. The Family Assembly is a forum aimed at promoting family integration and aligning all members with the family's vision and values. It provides an open environment and communication platform for all family members to express their ideas and opinions, creating channels for integrating family values into the next generation. 2. The family committee is a governing body that manages family members and interactions between the family and the business. It is responsible for formulating relevant policies for the family and setting governance guidelines for family members entering the family business. At the same time, the family committee can also serve as an interface to represent the family's views and values, representing the family's voice in the business. 3. The family office is an investment and administrative management center organized and supervised by the family committee. It provides a wide range of highly specialized and customized services for families, composed of experts from different fields and industries, to supervise and manage the financial, health, risk management, educational development, and other aspects of the entire family. The family office aims to assist the family in achieving success and smooth development, while coordinating with other family advisors to provide personalized services for generations within the same family.

Family businesses can use effective governance measures to ensure the continuity of the family and the stability of the enterprise. When governing family affairs, businesses usually follow a set of principles: inheriting the values and vision of the founder and the family, selectively separating family and business activities, establishing clear family governance mechanisms, and developing family member training plans. In addition, in order to better organize family affairs and ensure the long-term prosperity of the family and the success of the enterprise, family businesses cannot do without the help of governance tools. Establishing a "one system" and "three institutions" can ensure the effectiveness of family governance. 1. The Family Assembly is a forum aimed at promoting family integration and aligning all members with the family's vision and values. It provides an open environment and communication platform for all family members to express their ideas and opinions, creating channels for integrating family values into the next generation. 2. The family committee is a governing body that manages family members and interactions between the family and the business. It is responsible for formulating relevant policies for the family and setting governance guidelines for family members entering the family business. At the same time, the family committee can also serve as an interface to represent the family's views and values, representing the family's voice in the business. 3. The family office is an investment and administrative management center organized and supervised by the family committee. It provides a wide range of highly specialized and customized services for families, composed of experts from different fields and industries, to supervise and manage the financial, health, risk management, educational development, and other aspects of the entire family. The family office aims to assist the family in achieving success and smooth development, while coordinating with other family advisors to provide personalized services for generations within the same family.

Family businesses can use effective governance measures to ensure the continuity of the family and the stability of the enterprise. When governing family affairs, businesses usually follow a set of principles: inheriting the values and vision of the founder and the family, selectively separating family and business activities, establishing clear family governance mechanisms, and developing family member training plans. In addition, in order to better organize family affairs and ensure the long-term prosperity of the family and the success of the enterprise, family businesses cannot do without the help of governance tools. Establishing a "one system" and "three institutions" can ensure the effectiveness of family governance. 1. The Family Assembly is a forum aimed at promoting family integration and aligning all members with the family's vision and values. It provides an open environment and communication platform for all family members to express their ideas and opinions, creating channels for integrating family values into the next generation. 2. The family committee is a governing body that manages family members and interactions between the family and the business. It is responsible for formulating relevant policies for the family and setting governance guidelines for family members entering the family business. At the same time, the family committee can also serve as an interface to represent the family's views and values, representing the family's voice in the business. 3. The family office is an investment and administrative management center organized and supervised by the family committee. It provides a wide range of highly specialized and customized services for families, composed of experts from different fields and industries, to supervise and manage the financial, health, risk management, educational development, and other aspects of the entire family. The family office aims to assist the family in achieving success and smooth development, while coordinating with other family advisors to provide personalized services for generations within the same family.

Family businesses can use effective governance measures to ensure the continuity of the family and the stability of the enterprise. When governing family affairs, businesses usually follow a set of principles: inheriting the values and vision of the founder and the family, selectively separating family and business activities, establishing clear family governance mechanisms, and developing family member training plans. In addition, in order to better organize family affairs and ensure the long-term prosperity of the family and the success of the enterprise, family businesses cannot do without the help of governance tools. Establishing a "one system" and "three institutions" can ensure the effectiveness of family governance. 1. The Family Assembly is a forum aimed at promoting family integration and aligning all members with the family's vision and values. It provides an open environment and communication platform for all family members to express their ideas and opinions, creating channels for integrating family values into the next generation. 2. The family committee is a governing body that manages family members and interactions between the family and the business. It is responsible for formulating relevant policies for the family and setting governance guidelines for family members entering the family business. At the same time, the family committee can also serve as an interface to represent the family's views and values, representing the family's voice in the business. 3. The family office is an investment and administrative management center organized and supervised by the family committee. It provides a wide range of highly specialized and customized services for families, composed of experts from different fields and industries, to supervise and manage the financial, health, risk management, educational development, and other aspects of the entire family. The family office aims to assist the family in achieving success and smooth development, while coordinating with other family advisors to provide personalized services for generations within the same family.

1. The Family Assembly is a forum aimed at promoting family integration and aligning all members with the family's vision and values. It provides an open environment and communication platform for all family members to express their ideas and opinions, creating channels for integrating family values into the next generation. 2. The family committee is a governing body that manages family members and interactions between the family and the business. It is responsible for formulating relevant policies for the family and setting governance guidelines for family members entering the family business. At the same time, the family committee can also serve as an interface to represent the family's views and values, representing the family's voice in the business. 3. The family office is an investment and administrative management center organized and supervised by the family committee. It provides a wide range of highly specialized and customized services for families, composed of experts from different fields and industries, to supervise and manage the financial, health, risk management, educational development, and other aspects of the entire family. The family office aims to assist the family in achieving success and smooth development, while coordinating with other family advisors to provide personalized services for generations within the same family.

To ensure the success of the business and the growth of the family, family businesses must overcome two intertwined challenges: achieving superior business performance and striving to keep the family as business owners. To this end, family businesses must excel in five aspects and coordinate these five aspects: maintain harmonious relationships within the family and understand how the family should participate in the running of the business; establish a system that can provide sufficient resources for development. Capital can also enable the family to effectively control the ownership structure of the company's core affairs; implement strong governance of the company and establish a dynamic business portfolio; professionally manage the family's wealth; and establish charitable funds so that family values can be passed down from generation to generation.

Family culture determines how a family understands the main meaning and value of a business. This understanding will directly promote the top-level governance construction of enterprise ownership and control arrangement, main business direction, enterprise strategy, social responsibility, and decision-making mode, further affecting the driving force of enterprise development. Family culture determines the ways and principles in which family members participate in the process. The influence of family culture on family members has three aspects: firstly, promoting the development of personality traits; The second is to promote the development of cognitive patterns; The third is the development of driving mechanisms. Personality traits can promote the formation of self-identity and role positioning, as well as the leadership style and behavioral norms exhibited by family members in the process of enterprise participation. Cognitive patterns can promote the formation of a systematic and decision-making logic among family members in the process of enterprise participation. The motivation mechanism will promote the willingness and attitude of family members in the process of enterprise participation.

However, over time, as a family business becomes more powerful, not everyone in the business is related to the founder. At this time, the business owner will face the problem of management conflicts between family members and non-family members in the company: family members may not care about basic salary and commission, but non-family members will have requirements, and sometimes even require a certain proportion of shares. At this time, the bloodline management method is no longer suitable for this family business, and the leader of the business will face a choice: to retreat, or to step out bravely? When faced with this choice, there are two situations: first, if the family members are not good enough, but the founder only trusts the family members and refuses to adopt the professional manager system, then the company will never become big; second, if the family members are good enough, even if Without handing over operational control to non-family members, the company will also have bright development prospects. Take the five Liu Yongxing brothers, each of them is very good. When their business reaches tens of billions, the family shares are still close to 100%. Therefore, the prerequisite for refusing to adopt the professional manager system must be that the business owner and his family members are good enough. If not, and if you want to grow bigger, you must introduce a professional manager system. In the process of introducing professional managers, if we want to achieve sustainable development, we must be willing to spend money. By dividing money, non-family members who are not related by blood are forced to become blood relations, that is, "economic blood relations", so as to achieve the continuation of the family business. Demutualization is a kind of "economic kinship". Through demutualization, family businesses turn a business with only one or two shareholders into a business with multiple shareholders. Such a business is also a family business, because the shareholders also have blood relationships, but this relationship has changed from a pure blood relationship to today's "economic blood relationship", and the company has also changed from a family business to a business family. Many people in China have become members of business families. If a family business wants to achieve sustainable development, it must establish an advance and retreat mechanism for shareholders after demutualization. With this mechanism, once corporate family members are unable to cope with the fierce market competition and hinder the development of the company, they can use the advance and retreat mechanism of shareholders to introduce new talents and eliminate "inferior" members, including family members and founders.

The three interdependent and overlapping groups of family, business and ownership gave rise to seven distinct stakeholder groups, each with their own perspectives, goals and interaction patterns. The long-term success of the family business system depends on the functioning and interaction of these seven groups. A tailor-made family governance system that integrates guiding principles, organizational structure, management policies and practices, establishes communication, participation and consistency within and between groups, and incorporates flexible mechanisms to promote collective decision-making can effectively balance the overall family and members’ interests and demands. In fact, the role of an effective family governance system in maintaining family values ​​and unity has been recognized by many prominent families in the Asia-Pacific region. Although some families have informal family governance arrangements, such as regular family gatherings, other families have begun to build formalized and professional communication and governance platforms and use various family governance tools to enhance family cohesion and alleviate potential conflicts. and promote collective decision-making to proactively, rather than reactively, respond to changes.

. From the perspective of modern enterprise management, the Western "group structure" is dominated by the "rule of law", with clear responsibilities and rights, and an emphasis on the spirit of contract, which is conducive to the formation of efficient and stable enterprise organizations; while China's "differential order structure" makes Chinese family businesses tend to be "ruled by people", with vague personal responsibilities and rights, and rely more on trust, friendship, and loyalty as the driving force and lubricant for business operations. For this reason, many voices in the industry and academia have criticized the management level of Chinese family businesses for being backward. However, from a broader perspective, this criticism is overgeneralized. Different management styles have their own causes and advantages. They are suitable for different stages and situations of the enterprise, and there is no absolute advantage or disadvantage. Chinese family businesses do not need to belittle themselves, but they need to recognize the advantages of their own characteristics, and they need to make active adjustments and make use of their strengths to offset their weaknesses as the business develops.