The Family Governance Pyramid

Abstract

The author starts with the observation that virtually every family of significant wealth lives within a family governance system, yet few know that this is the case and even fewer know how to ensure that they are in charge of the system and that it operates for their benefit. This article aims to assist families in understanding the systems that they are creating and learning how to manage them for the well-being of their family members. Drawing from the developing theory and practice of family governance, it provides a new framework (the “family governance pyramid”), an overview of the stages of development (“chaos” through cohesion), and practical steps to create and manage a family governance system that will work across generations.