Developing engaged owners is a strategic advantage for a family business. Engaged owners are invested in the business’s long-term success, focused on preserving the family’s wealth and legacy for future generations, and more likely to participate in succession planning. But many family businesses struggle to develop well-aligned and engaged owners. A simple solution to this problem: an owners council.
An owners council is a representative group of owners within a family enterprise, according to Doug Baumoel and Blair Trippe. The council focuses on how the interests of the owners impacts all the stakeholders and, unlike a corporate board, it can function as a committee of the family council. (If it’s composed exclusively of family members.)
There are five benefits of an owners council in a family business. To learn about these benefits, check out “Bridging Governance Gaps with an Owners Council in Family Enterprises.” Make sure you read until the end. You’ll learn additional information on how an owners council differentiates from a family council and how the council operates.
Read about the five benefits of an owners council in a family business here.
Become a Member for Your Expertly Curated Advice
Joining the Family Wealth Library means access to the information the legacy builders need to navigate family dynamics and protect our wealth. We can keep what is ours by managing familial challenges and building trust and transparency.