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How Do I Establish the 'Rules of the Game' for our Family Business?

Full Question:

My sister and I have been running a family catering company for the past five years. Our parents, while still majority shareholders, are no longer active in the business.
My girlfriend, who would be a great asset to the business, wants to join us, yet my sister won’t hear of it.
Since having children, my sister is spending less and less time in the business, yet draws the same remuneration as I do and still wants a strong say in the business.
I’m tired of the bickering, it’s impacting on my performance and sometimes, I just want out.
Answer - Harry says:
Working with family is tough, particularly so when you are sharing the leadership role. It might be time for you, your sister and other key family members decide what we call 'The Rules of the Game'.
This process leads to the creation of a Family Constitution or Charter and it helps you to reach agreement on how the family and the business interact with each.
The Charter sets out your mission, your long term goals and defines the values that you as a family bring to the business. It deals with a range of issue including –• Employment and remuneration• Career opportunities• Leadership• Ownership• Governance• Conflict management• Updating the Charter
The key is to think about how the family will deal with these issues before they arise. This way decisions can be made with a clear head, rather than at a time of high passion. It also means that those entering the business in future can do so with full knowledge of how the ‘Family Business Game’ is played.
You can download more information on developing your Family Charter from the 'Members' section of the FBA web site - www.fambiz.com.au.
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