Here are various governance resources including articles, research studies, book chapters, and industry reports that are relevant to affluent families and their advisors. Governance has multiple layers and it is important to understand the differences between 1) corporate governance, 2) family office governance and 3) family governance.
Read chapter 11, "Governance Issues for the Family Office," provides direction on boards, independent directors, advisory boards, responsibility and accountability, involving the next generation, and more. It also explores governance and family, the decision-making process for families, and why involvement and participation are keys to strong family governance. Family governance structures such as family councils, family constitutions, and the Kettering Family Governance Case Study are described. Click here to purchase the book.
Listen the podcast, "Trust Governance: Empowering Families" with Canadian Chief Learning Officer, Cindy Radu, who explains the importance of understanding the governance within a trust and how it impacts all the parties to a trust.
Read the "IFC Family Business Governance Handbook" written by the International Finance Corporation in conjunction with the World Bank. This report provides a comprehensive look at family business governance from how family members are involved in the governance of their business, to family governance structures, to the role of a board of directors in a family business.
Read the "Tamarind Learning Newsletter: August 2022" which focuses entirely on the topic of governance. From trust governance to family governance, this newsletter highlights some excellent resources and stats.
Read "How to Succeed by Really Trying," an article that discusses common succession pitfalls of family office governance and decision-making. The article provides constructive guidance on four keys to successfully implementing long-lasting governance changes including 1) commitment, 2) communication, 3) champions, and 4) culture change. The succession checklist is a helpful tool to consider the steps and processes for successful succession.
Read "Build a Family Business that Lasts" by Josh Baron and Rob Lachenauer and learn about the 4-Room model to consider family governance in the framework of a family business. The Owner Strategy Triangle provides a useful rubric to consider the trade-offs of grown and liquidity, versus growth and control, and liquidity and control.
The conflict and devastation depicted in the Rollins family, reveals how wealth can tear a family apart. The family endured many conflict-ridden years as two generations of the family fought over the wealth held in trust. Read "Settlement Reached in a heated family dispute over the Rollins Fortune."
