FAQs
Running a family-owned business is a unique balancing act. You’re managing not just profits and performance, but also relationships, legacy, and shared dreams. At Experts in HOW, we specialize in helping family enterprises navigate governance, succession planning, generational engagement, and conflict management so that you can protect both the business and the bonds that make it special.
Below, you’ll find answers to the most common questions we hear from family business owners and leaders. Whether you’re preparing the next generation, resolving a dispute, or building a stronger governance structure, these insights can help you move forward with clarity and confidence.
Governance & Decision-Making
Think of governance as the agreed “rules of the road” for decision-making. It’s not about someone telling you what to do; it’s about clarity and respect. Governance creates a shared process so you can move forward even when opinions differ. Without it, decisions stall, emotions flare, and progress grinds to a halt.
Example: A fourth-generation leader of their family-owned business’s family council, credits their written governance policies for keeping disagreements from escalating: “We may not always agree, but we always know how to decide.”
Thought Starter: How would you describe your current decision-making process? Is it written down? Does everyone follow it?
A family constitution is your family’s written agreement on values, vision, and “how we do things.” It comes from honest conversations, and sometimes tough ones. Done well, it becomes your compass in good times and bad.
Example: One manufacturing family I worked with created their constitution after a heated debate about whether cousins could join the business right after college. The resulting policy not only settled the question — it prevented future conflict.
Thought Starter: If your family had to write its guiding principles today, what would the top three be?
Choose people who will serve the business’s best interest — family or not. Include those who bring needed skills, challenge assumptions respectfully, and align with your values.
Example: The CEO of their Insurance Services company, describes how adding outside directors with no family ties transformed the company’s decision-making speed and strategic clarity.
Thought Starter: Who in your current governance circle challenges you in a way that makes decisions stronger?
Succession Planning
Earlier than you think; ideally 5–10 years before a leadership change. Succession is about preparing people and the organization, not just picking a name. In any event it’s never too early nor too late to start.
Example: The Co-CEO of a client began succession conversations with his cousins years before the actual transition. “We wanted the handoff to feel natural, not like a power grab,” he says.
Thought Starter: If your current leader had to step down tomorrow, what would happen?
It’s about capability and alignment, not entitlement. It’s about the development of family members until they are ready. In the interim, look for those who can earn respect across the family and business. Outside perspectives can help you see past family politics.
Example: One agricultural family I advised had three siblings in the business but chose a non-family president. Within two years, revenue grew 40% — and the family remained united.
Thought Starter: Who in your family could lead today — and what development plans would they need to be ready for tomorrow?
That’s not failure — it’s a pivot. You can bring in a non-family CEO, keep ownership, or sell. Your legacy isn’t tied to bloodlines alone.
Example: A Canadian printing family kept ownership but hired a seasoned industry executive. The move preserved the family name and legacy while fueling growth.
Thought Starter: If you couldn’t pass the business to a family member, what would be your next best choice?
Generational Engagement
Invite them into the story of the business — its history, purpose, and impact. Give them exposure to the business to help them see the “why” and the “how”, not just the “what.”
Example: One family business hosts an annual “Legacy Day” where kids tour the facilities, hear founder stories, and can ask questions about the business. Engagement shot up once they felt part of something bigger.
Thought Starter: How often do you talk about the family’s legacy with younger generations, and other family branches?
It’s a best practice. Outside experience brings maturity, fresh thinking, and credibility when they come home to the family business.
Example: At many of our clients we advise that next-gen members are expected to work elsewhere first, It helps them bring new skills back — and it makes them appreciate the opportunity here.”
Thought Starter: How could outside experience strengthen your future leaders?
Conflict Management
Clear policies. Defined governance structures, and Documented agreements. Regular conversations to catch small issues before they become big ones. Engage the family to address conflict issues with respectful and open discussion of the issues.
Example: A client’s family council has a standing rule: if a conflict surfaces, it must be discussed at the next meeting. That discipline keeps molehills from becoming mountains.
Thought Starter: How are you building a culture of respect and open communication?
Hold everyone to the same standards. Offer feedback and support. Approach the need to improve as a development investment, however, be ready to act if performance doesn’t improve.
Example: A retail family I advised used a formal performance review system for all employees, including family. When a nephew didn’t meet expectations, the decision to let him go was painful, yet handled with respect.
Thought Starter: Do you have a clear, fair process for handling required skill development and underperformance of family members and non-family members?
Contain the conflict, protect the business, and rebuild trust. Sometimes, a skilled mediator is the fastest way forward.
Example: One client’s feud between siblings was hurting the family and spilling into business leadership meetings. We guided the family through mutual understanding of the individual points of view and helped them agree on communication rules — and morale rebounded within weeks.
Thought Starter: How would you know if your business was being affected by a family dispute?
Other Key Topics
Separate pay for work from returns on ownership. Salaries should match market rates for the role; separate distributions to reflect family engagement should be kept confidential and be based on longer term performance. Maintaining a family employment process and policy is critical.
Example: For clients we help them develop and maintain a family employment process and policy where family employees earn market-based pay and any other distributions are handled separately, avoiding confusion and resentment.
Thought Starter: Could you explain your compensation policy to a new family member in two minutes or less? Is it documented?
Keep mission and values visible in every decision. Celebrate wins together. And remember — the business comes first, but it is through the family that you manage and maintain harmony.
Example: One hospitality family hosts a quarterly “Family & Business Day,” where they review financials in the morning and cook together in the afternoon. It keeps both the balance sheet and the bonds healthy.
Thought Starter: What’s one tradition you could start that celebrates both the business and the family?
Contain the conflict, protect the business, and rebuild trust. Sometimes, a skilled mediator is the fastest way forward.
Example: One client’s feud between siblings was hurting the family and spilling into business leadership meetings. We guided the family through mutual understanding of the individual points of view and helped them agree on communication rules — and morale rebounded within weeks.
Thought Starter: How would you know if your business was being affected by a family dispute?
Your family business deserves more than just survival. It deserves to thrive across generations. The right conversations, governance structures, and plans can preserve your legacy and strengthen family unity for decades to come.
If you’re ready to address these challenges head-on, let’s talk. We’ll help you create a governance system that works, a succession plan that inspires confidence, and a family culture that keeps everyone engaged in the journey ahead.