Family Protocol is nothing more than an exercise in formalising standards and behaviours we need to boost relations between companies and families, between parents and children.
It is also an exercise in anticipating a future scenario where there must be generation changes which is no doubt the most delicate moment in a Family Business. Planning for and anticipating difficulties in the succession process is the best way to overcome them.
The final document is important to the extent the drafting process makes it possible to refine, clarify and find consensus in all the participants’ visions and interests to create an aligned and voluntary commitment among everyone.
The success and continuity of a family business lies in:
- Getting each institution, family and company to work in accordance with their goals and principles in addition to supporting each other.
- Making it so the relationship between generations is all about mutual support.
Reaching these goals is lifelong work.
The following aspects at least must be clear:
- The Values and foundations of Unity and Commitment within the business-owning family.
- What type of family company we wish to become.
- Defining how power and decision-making is to be managed.
- How to regulate family members’ labour and economic participation in the company.
- Formal aspects related to ownership and transfers.
- Succession planning.
- Implementing and regulating the actual Family Protocol.
A Continuity Plan is also needed specifying how and when the different agreements and projects deriving from the Family Protocol shall be implemented.
Solutions and tools
Mediation and conflict resolution
Guidance when selecting, training and preparing the successor team.
Assistance for the outgoing generation in planning their next phase in life.
Creating or revising corporate governance: family board, board of directors and family assembly.