Corporate Governance and the Family Business
It's been my experience that where most businesses get off track, and this is particularly true of family businesses, is that the function of the business has never been explicitly defined. The result is the form of the business is poorly designed.
In the family business where all the family relationships are put at risk by the business issues, it is particularly critical that the family be very clear about what they want the business to be and do for them.
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Otherwise, the default reality will tend to be that the business turns into a playing field for the family to act out its pathologies which rarely makes for good economics.
Lanny Goodman is a strategic planning consultant and president of Management Technologies Inc.. Since 1980 he has helped entrepreneurs build highly vital and productive companies. Lanny has developed a unique process to create self-managing companies based on the emerging scientific principles of self-organizing systems. His company works in a very wide variety of industries in the services, manufacturing and not-profit for industries with clients ranging from $1.5m to over $1b in sales. Contact Lanny at www.lannygoodman.com
