Borrowed from Your Grandchildren

CHAPTER 10Governance: Organizing the Interconnection of Family and Business

By G3, a generative family has become a very wealthy, loosely connected tribe of families with a common interest. They manage huge resources; hence they are more than a social group. Because of their shared legacy, they need to organize a tribal government, to manage assets, resolve disagreements, manage family and business affairs, and create a common vision and purpose. Each family member must become a citizen of the tribe and take responsibility to participate. This government consists of a tribal council that oversees and organizes personal relations, and other councils that oversee their business and financial resources.

As a tribe of dispersed families, the family needs to sustain harmony, community and continuity. They need a well-developed family organization that runs parallel to its business interests. Family governance is one of the major achievements of a generative family. It enables the family to steward and use its wealth to fulfill its values and purpose, and maintain appropriate communication and influence over its business governance.

Governance takes the generative family beyond business and legal requirements for financial oversight. The family initiates special activities outside the business but taps into the resources and opportunities offered by its business and wealth. Many incredible activities become possible to this type of family. A family can remember and preserve the family ...