Skip to main content
SpringerLink
Log in

Do Family Councils Really Work? The Need for Empirical Study

  • Chapter
  • First Online:
Understanding Family Businesses

Part of the book series: International Studies in Entrepreneurship ((ISEN,volume 15))

Abstract

Governance continues to be among the most important issues facing family ­businesses. The widely accepted three-circle model of family, management, and ownership (Tagiuri and Davis 1996) employs a board of directors to address governance at the intersection of ownership and management; however, this significantly ignores the family’s interests. The family and the business are often so enmeshed that emotions are simply inevitable (Alderfer 1988). To correct for this oversight, family meetings, family councils, and family constitutions are often advised by family business consultants. Family councils are formed to benefit family members in the areas of planning, policy making, and strengthening business–family communication.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Alderfer CP (1988) Understanding and consulting to family business boards. Family Business Review 1 (3): 249–261

    Article  Google Scholar 

  • Alderson K (2009) Exploring the complexities of family business decision making: how the ­second generation makes decisions. Doctoral dissertation, Capella University, Minneapolis, MN

    Google Scholar 

  • American Family Business Survey (2002) MassMutual Financial Group/Raymond Institute http://www.kennesaw.edu/fec/DMD9500R.pdf

  • Aronoff CE, Astrachan JH (1996) How to make better decisions. Nations Business 84 (1): 39–40

    Google Scholar 

  • Aronoff CE, Ward JL (2002) Family meetings: How to build a stronger family and a stronger business. Family Enterprise Publishers, Marietta, GA

    Google Scholar 

  • Bernard HR (2006) Research methods in anthropology: qualitative and quantitative approaches 4th ed. AltaMira Press, Oxford

    Google Scholar 

  • Bianchi C, Alderson K (ongoing) Family Council Effectiveness: Interviews with families, consultants, and academics. Unpublished raw data

    Google Scholar 

  • Bird B, Welsch H, Astrachan JH, Pistrui D (2002) Family business research: the evolution of an academic field. Family Business Review 15: 337–350

    Article  Google Scholar 

  • Chrisman J, Chua J, Sharma P (2003) Current trends and future directions in family business management studies: toward a theory of the family firm (Coleman white paper series). Coleman Foundation and U.S Association of Small Business and Entrepreneurship, Kent, OH

    Google Scholar 

  • Corbetta G, Tomaselli S (1996) Boards of Directors in Italian family businesses. Family Business Review 9 (4): 403–421

    Article  Google Scholar 

  • Daschew L, Jaffe D, Lane S, Paul J (2005 Spring) The family council. Aspen Family Business Group Newsletter: 1–8

    Google Scholar 

  • Davis PS, Harveston PD (1999) In the founder’s shadow: episodic conflict in the family firm. Family Business Review, 12 (4): 311–323

    Article  Google Scholar 

  • Dyer WG Jr (1986) Cultural change in family firms: anticipating and managing business and family transitions. Jossey-Bass: San Francisco, CA

    Google Scholar 

  • Dyer WG Jr (1988) Culture and continuity in family firms. Family Business Review 1: 37–50

    Article  Google Scholar 

  • Eddleston KA, Otondo RF, Kellermanns FW (2008) Conflict, participative decision-making, and generational ownership dispersion: A multilevel analysis. Journal of Small Business Management 46: 456–484

    Article  Google Scholar 

  • Eisenhardt K (1989) Making fast decisions in high-velocity environments. Academy of Management Journal 32: 543–576

    Article  Google Scholar 

  • Feltham TS, Feltham G, Barnett JJ (2005) The dependence of family businesses on a single decision maker. Journal of Small Business Management 43 (1): 1–15

    Article  Google Scholar 

  • Gersick KE, Davis JA, Hampton MM, Lansberg I (1997) Generation to generation: life cycles of the family business. Harvard Business School Press, Boston, MA

    Google Scholar 

  • Handler WC, (1994) Succession in family business: A review of the research. Family Business Review 7: 133–157

    Article  Google Scholar 

  • Hilburt-Davis J, Dyer WG Jr (2003) Consulting to family business: a practical guide to contracting, assessment, and implementation. Jossey-Bass Pfeiffer, San Francisco, CA

    Google Scholar 

  • International Finance Corporation (2008) IFC family business governance handbook 2nd ed. World Bank Group. Washington, DC

    Google Scholar 

  • Jaffee DT (2005) Strategic planning for the family in business. Journal of Financial Planning 18 (3): 50–56

    Google Scholar 

  • Jaffe DT (1991) Working with the ones you love: Strategies for a successful family business Berkley, CA. Conari Press

    Google Scholar 

  • Kaslow F (2006) Handbook of family business and family business consultation: a global perspective. International Business Press, New York

    Google Scholar 

  • Kelly LM, Athanassiou N, Crittenden WF (2000) Founder centrality and strategic behavior in the family owned firm. Entrepreneurship Theory and Practice 25: 27–42

    Google Scholar 

  • Lansberg I, Perrow E (1991) Understanding and working with leading family businesses in Latin America. Family Business Review 4: 127–147

    Article  Google Scholar 

  • Lansberg I (1999) Succeeding generations: Realizing the dream of families in business. Boston, MA. Harvard Business School Press

    Google Scholar 

  • Leach P, Bogod T (1999) BDO Stoy Hayward’s guide to the family business 3rd ed. Kogan Page, London

    Google Scholar 

  • Leach P (2007) Family business: the essentials. Profile Books, London

    Google Scholar 

  • Leon-Guerrero AY, McCann JE, Haley JD (1998) A study of practice utilization in family businesses. Family Business Review 11: 102–120

    Article  Google Scholar 

  • McCann G (2007) When your parents sign the paychecks: finding career success inside or outside the family business. Jist Works, Indianapolis, IN

    Google Scholar 

  • Miles MB, Huberman AM (1994) Qualitative data analysis 2nd ed. Sage, Thousand Oaks, CA

    Google Scholar 

  • Mustakallio M, Autio E, Zahra SA (2002) Relational and contractual governance in family firms: effects on strategic decision making. Family Business Review 15: 205–222

    Article  Google Scholar 

  • PricewaterhouseCoopers (2007/08) Making a difference: The PricewaterhouseCoopers family business survey. http://www.pwc.com

  • See TB (2001) Family business council governance process: A successful model. Proceedings of the 2001 Family Firm Institute Annual Conference, London. http://www.ffi.org/components/comp_035/article_files/31_10_2008/2001_10.pdf

  • Sharma P (2004) An overview of the field of family business studies: current status and directions for the future. Family Business Review 17: 1–36

    Article  Google Scholar 

  • Sharma P, Chrisman JJ, Chua JH (1997) Strategic management of the family business: past research and future challenges. Family Business Review 10: 1–35

    Article  Google Scholar 

  • Sonnenfeld JA, Spence PL (1989) The parting patriarch of a family firm. Family Business Review 2: 355–375

    Article  Google Scholar 

  • Tagiuri R, Davis JA (1996) Bivalent attributes of the family firm. Family Business Review 9: 199–208

    Article  Google Scholar 

  • Ward JL (1987) Keeping the family business healthy. Jossey-Bass, San Francisco, CA

    Google Scholar 

  • Ward JL (2004) Perpetuating the family business: 50 lessons learned from successful families in business. Palgrave Macmillan, New York

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. College of Business Administration, San Diego State University, 5250 Campanile Drive, San Diego, CA, 92182-1915, USA

    Carmen Bianchi

  2. Robert K. Jabs School of Business, California Baptist University, Riverside, CA, USA

    Keanon J. Alderson

Authors
  1. Carmen Bianchi
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Keanon J. Alderson
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Carmen Bianchi .

Editor information

Editors and Affiliations

  1. TED ROGERS SCHOOL OF BUSINESS, TORONTO, M5B 2K3, Ontario, Canada

    ALAN CARSRUD

  2. Dept. Business Administration, Swedish University Abo, Henriksgatan 7, Turku, 20500, Finland

    Malin Brännback

Appendix

Appendix

12.1.1 Questionnaire

  1. 1.

    Are you aware of the concept of a family council?

  2. 2.

    Do you have a family council?

  3. 3.

    If not, why not?

  4. 4.

    Would you consider having a family council?

  5. 5.

    Why?

  6. 6.

    Who would be a part of your family council?

  7. 7.

    If yes, when was it started?

  8. 8.

    Has your family council been effective?

  9. 9.

    Can you describe its effectiveness?

  10. 10.

    How often does your family council meet per annum?

  11. 11.

    How structured are the meetings (e.g., agenda)?

  12. 12.

    Who runs the meetings?

  13. 13.

    Who calls a family council meeting?

  14. 14.

    Who attends these family council meetings (spouses, in-laws)?

  15. 15.

    Are there rules to the meeting?

  16. 16.

    Do you have a facilitator? If so, is it a family member or nonfamily member?

  17. 17.

    What decisions if any does the family council make?

  18. 18.

    Is there a representative of the family council on your Board of Directors?

  19. 19.

    Do you have a Board of Directors?

  20. 20.

    Do you have a Family Creed/Constitution?

  21. 21.

    If so, do you adhere to it in the true sense of the word?

  22. 22.

    Is there any incentive for being on the family council?

  23. 23.

    To what degree is there a sense of stewardship among family members?

  24. 24.

    Is the family council an “Open Platform” for all family members to have a voice?

  25. 25.

    Describe the culture of the family (open, casual, rigid, top down, secretive, respect of nonfamily members).

  26. 26.

    Does everyone treat each member with respect and common decency?

  27. 27.

    Does each family member have the right to make an independent decision?

  28. 28.

    If so, how enforceable is an independent decision?

  29. 29.

    Does it go to vote?

  30. 30.

    What can you recommend to other families regarding the creation of a family council?

12.1.2 SWOT Analysis

Strengths: What is working? What does the council do well?

Weaknesses: What is not working? What does the council do that needs improving?

Opportunities: Concerning opportunities, is there anything the family council should be doing? Are there any opportunities the business should exploit to strengthen the family council?

Threats: Is there anything that threatens the effectiveness of the family council? Could you tell us about that?

Rights and permissions

Reprints and permissions

Copyright information

© 2012 Springer Science+Business Media, LLC

About this chapter

Cite this chapter

Bianchi, C., Alderson, K.J. (2012). Do Family Councils Really Work? The Need for Empirical Study. In: CARSRUD, A., Brännback, M. (eds) Understanding Family Businesses. International Studies in Entrepreneurship, vol 15. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-0911-3_12

Download citation

Publish with us

Policies and ethics

Search

Navigation