Family “organization” needed for family businesses

In his article Family Wealth in Crisis, Gerald Le Van suggests interim strategies that help wealthy families make better decisions during the current financial crisis.

Mr. Le Van warns that:

Families who are not well organized will flounder in these difficult times. A rising tide lifts all boats but draining the lake exposes the debris on the bottom. Families may relate well in rising markets but old discontents can emerge as markets subside and wealth shrinks.

Traditional outside boards, family offices or family councils can require a year or more to get up to speed. * * *

There are viable interim alternatives. Experienced outside directors of other family companies can be included in family-only board meetings and participate fully in board discussions, but without a vote. Qualified persons can be retained to coordinate family office functions necessary to negotiate the crisis. Professional facilitators can guide productive family wealth discussions.