One way to successfully manage conflict in a family business is to have a family-business creed. When well drawn-up, such a document can even prevent conflict occurring in the first place. It outlines your business’ core values and vision, and your family’s commitment to them.

Importantly, it is also a practical guide for running the business and a framework you can use to deal with family business issues that have the potential to cause disputes. The process of drawing up a family constitution should be collaborative, involving everybody with a stake in the business. The document should be regularly reviewed.

A typical family-business constitution might include the following sections:

* the business’ strategy, objectives and values
* leadership
* management structure
* entry principles for family members
* succession and exit policies
* rights, responsibilities and obligations of family appointments
* rights, responsibilities and obligations of family members not working in the business
* appointment and rights of non-family board members, management and employees
* training, remuneration and appraisal of employees – both family and non-family
* involvement of non-executive directors and other outsiders
* communication channels
* dispute-resolution procedures

Contact Us Today for more information on how we might be able to help your Family or Closely held Business.