Governance in the family farm – why and what?
Governance provides a framework to bring family members into the business discussion, letting them engage and participate in the family business and opening the door for succession.
Governance allows for a wider scope of experience, knowledge, skills, challenge and insights to be brought into the decision-making process.
Governance is the process of working "on" the business rather than working "in" the business. It is taking regular, scheduled time to think about business strategy rather than day to day operations.
It is about how the business is performing for all its stakeholders, including meeting its regulatory requirements.
Business owners have multiple demands on their time, energy and focus, and it’s challenging to set aside time to focus “on” the business when these discussions can be put off until tomorrow.
Scheduled governance time and a robust governance process clears space to concentrate on and discuss strategic issues and regulatory requirements.
A structured opportunity to involve all family members in the discussion about the critical elements of the business is a proven benefit of effective governance. It also allows an opportunity to have invited experts around the table to provide valuable new knowledge and insight and help make better decisions and maximise the potential of the business.
How do you start the process of establishing a governance framework in your business?
Seek advice and guidance from your professional advisors and talk with business colleagues who have governance in place.
Read about governance, there is lots of information available
Seek out a trusted advisor, coach and mentor
Review the 8 point Compass "Governance to Succession to Progression" model here
If you would like to develop options to progress your governance journey and build engagement across your family, email Mark Heer or Rachel Haskew at 8pC on mark@8pointcompass.com or rachel@8pointcompass.com.
