Brief about this service
The family business governance service helps family-owned companies transition from being person-dependent to system-dependent, by implementing accountability and oversight, clearly defining responsibilities, and establishing clear policy and procedure manuals for financial, administrative, and operational processes.
Service Details
Family businesses are companies owned and managed by a family or a group of individuals from the same family. These companies are run by the family from one generation to the next, just as ownership is transferred. They are often built upon the vision, relationships, and experience of the founding individual.
Family businesses are among the largest drivers of the Arab and global economies. Brands such as Germany’s Volkswagen and America’s Walmart are family-owned enterprises that significantly contribute to their national economies and possibly to the global economy.
Family businesses possess positive characteristics, such as speed in decision-making due to fewer management layers, enabling them to flexibly respond to market changes in a short time.
However, these businesses face significant challenges that grow across generations, including the absence of separation between ownership and management, reliance on personal relationships rather than competence in appointments, and difficulty in establishing clear succession plans. These issues threaten their sustainability in future generations and may gradually transform the work environment into one that drives away competent professionals. Additionally, the absence of oversight committees worsens the mismanagement of financial and human resources.
Therefore, family businesses need to implement corporate governance to transition from person-based management to system-based management, relying on policies, procedures, and professional operational manuals that regulate financial, administrative, and operational processes.
Governance in family businesses is a practical methodology that reorganizes the relationship between owners, management, and employees, ensuring decisions are made transparently, responsibilities are clearly distributed, accountability systems are activated, and trust is built with partners and investors.
It is the only guarantee for the continued successful operation of family businesses, reducing conflicts and transforming the company into a trustworthy entity.
What we offer?
In our Family Business Governance Consulting service, we provide gradual and practical support that takes into account the company's reality and culture, with a strong emphasis on training and guiding teams on the ground at every stage to ensure sustainability and real activation of the new system.
Phase One: Comprehensive Assessment of the Company's Status
We conduct a detailed analysis of the current situation, relying on interviews with authorized family members involved in management, department managers, and key employees. We evaluate the organizational structure, review decision-making systems, and analyze authorities. Additionally, we deliver training sessions (as needed) for the team to understand governance, the importance of separating ownership from management, and the positive outcomes that governance implementation will bring to them and the work environment.
Phase Two: Design and Development
Based on the assessment results from the first phase, we develop the organizational structure, establish effective policies and procedures for all departments, and design a succession plan based on competence. Then, we conduct training workshops (as needed) with the management team to explain the new structure, management levels, and leadership hierarchy.
Phase Three: Implementation and Activation
We work on establishing effective oversight committees, such as a governance committee or a risk committee. We also prepare the mechanisms for the board of directors and train committee members and board members on their roles and responsibilities. We educate them on methods to address resistance to change that may arise during the implementation of new systems.
Phase Four: Certification and Sustainability
We assist the company in qualifying for quality certifications such as ISO 9001 or any other standard suitable for the company’s field of activity. We deliver training workshops (as needed) to understand the principles of transparency and accountability. We also help various departments design and implement performance indicators (KPIs), and train them on monitoring results and making data-driven decisions.
Our consulting services go beyond merely providing documents and manuals. At every stage of the consulting process, we work to create a positive change in the company’s reality.
In short, we work to transform the family business into a pioneering enterprise based on competence, relying on systems and oversight to ensure its continuity and success across successive generations.
