Management Governance – for Family Businesses
Each firm's governance needs vary; however, all firms require regular, frequent communication forums that include:
- Executive committee meetings - The executive committee typically meets weekly and includes the CEO, CFO, senior VPs and department heads. These meetings are best used to implement strategy and make certain that all company components are working together.
- Planning and implementation team meetings - Each division typically meets weekly or bi-monthly to plan, coordinate, and track their goals. For example, the sales division meets to set sales targets and objectives.
- Special task force gatherings - Task forces often cut across divisions and on a regular basis, may bring together individuals at different levels of management to implement a new product or strategy.
- Scheduled training sessions - Firms with the best practices have a regular training program for successor CEO(s), managers, and any employees seeking to improve their skill set. Training can include an internal program using existing managers as faculty, outside consultants, as well as external training at other institutions (i.e., universities, trade groups)
- Compensation and promotion boards - Best practices requires a clear and open policy regulating all promotions, compensation and bonus plans. These boards meet regularly (frequency can range from monthly to biannually) to promote policy, determine individual performance, and communicate performance evaluation with all employees.