Family Governance

Abstract

Like any good business, a family needs strong, capable, and assertive leadership. Leadership sets agendas, calls meetings, holds people accountable, and enforces the rules, customs, and protocols that are as common in family units as they are in business. Unlike a business, however, the common objective for families is not necessarily to increase the financial bottom line for investors and shareholders. Instead, the leaders of the Legacy Family seek to help each family unit and individual members increase the four capitals of family wealth—human, intellectual, financial, and social.

Governance was easy when dad was alive. He decided. We followed. After dad’s death, my older brother, Ron, assumed the mantel of authority. Only problem was that mom thought it was her turn and our oldest sibling, Sara, who used to help Ronnie tie his shoes, didn’t really like being told what to do by her younger brother. Mom kept the lid on until she became feeble. Then, we started to argue. We have lots of assets we inherited and own together, a family foundation on which we all serve, and family gatherings that we all attend. I don’t mind input by my siblings, but I’m 48 years old and don’t really want to be told what to do by my siblings.

~Rick, Los Angeles, CA