Family Matters: Why Digital Governance is the Next Frontier for Family Business
Family businesses – private organisations with more than half of their voting rights controlled by a family, or public companies with at least a third of voting control within a family – account for 70% to 90% of businesses worldwide. They are every size and in every industry. They could be the newsagents at the end of your road. They could also be LVMH or Aldi.
There are many benefits to such a structure. Yet family businesses often suffer from tension and instability, frequently stemming from competing interests, failures in succession planning, reliance on inefficient processes and gaps in governance. It doesn’t have to be this way. Today’s family businesses must evolve to keep pace with the changes around them, and good governance technology builds a strong foundation for doing that.