November 2021 < Back
Successful, multi-generational family businesses are known to pay considerable attention towards creating sustained family togetherness through well-functioning governance structures.
Being together as a large, geographically dispersed family becomes an increasing challenge as the family size increases and business begins to diversify. Moreover, after three generations into business, many families prefer to professionalize the business and transition from an “operating mindset” to a “strategic investor & steward mindset”.
In such circumstances, ensuring family’s commitment, engagement levels, communication and education/development becomes extremely vital.
Family governance begins with the family making a commitment to get together regularly.
Two important structures of family governance that help achieve these objectives are
Family Assemblies and Family Retreats
A well-functioning Family Assembly is an annual meeting (sometimes semi-annual), where relatives can get together, update their information about each other and share views among branches, generations, and those who live far apart.
In smaller families that comprise of only 2 or 3 generations, family assemblies and retreats are often combined together as a single event. However, in large multi-generational families wherein the family units are spread across multiple locations, family assemblies and family retreats are held as separate events. The former focus more on sharing information & highlights about the business while the latter focus on bonding and fun events.
The family assemblies and retreats are usually organized by the family office led by the Family Council chair and one or two members from the family assembly.
Family assemblies and retreats are more than just social gatherings. They are carefully planned to combine fun, education, quality family time and business meetings.
Family business leaders in the business use this as an opportunity to make brief presentations about the business.
The Family Assembly of JMB Family The J.M. Burguières Co., Limited was founded in 1877 from three sugar plantations and has prospered through the years as a land acquisition and holding company with property interests in south Louisiana, south Florida, and west Texas. They are a diverse company that provides a multitude of services that build value in land. It all began with Eugene Denis Burguières, son of Jean Baptiste and Catherine Pauline Lallamand Burguières, originally from Paris, who came to America in the early nineteenth century, settling in Terrebonne Parish, Louisiana. Originally envisioned by young leaders within the family business, the J. M. Burguières Family Assembly is comprised, largely, of direct descendants of Jules M. Burguières, Sr. Membership includes all members of a shareholder’s extended family, including spouses, children, families of children of shareholders and family members and their spouses who are former shareholders and are at least 15 years of age.
In order to ensure an effective family assembly and retreat, it is important to plan the dates, venue and other logistics well ahead in time. Usually all assemblies are paid for by shared family funds, rather than by individuals.
Sources: Family Assembly Development, Investing in family cohesion by Lansberg & Gersick A survey of enterprising families' governance practices by Dennis T. Jaffe, Peter Begalla and Jane Flanagan Official Website of JMB Companies & Family Assembly Website
Lorem ipsum text is simply dummy text Lorem ipsum text is simply dummy textLorem ipsum text is simply dummy textLorem ipsum text is simply dummy text
Share on
Get your monthly subscription
Recent Newsletters
PFBI Connect is conceptualised, designed, edited and published by PFBI. All the articles and news are researched, selected and suitably edited at the discretion of the editorial team. All rights reserved. Information and data featured in PFBI Connect cannot be printed or reproduced without prior approval.
Happy reading.