The British royals can teach us plenty about running a family business

Emotions, communication and internal politics are a challenge for any family business, including the British royals, says BDO expert.

Establishing a good governance structure, especially in the consideration of succession planning, can be a challenging task for any business. Imagine having the added complexities of family politics and emotions in the mix?

On this public holiday Australians are taking time to remember and reflect upon the passing of Queen Elizabeth II. As an expert in family business, I cannot help but think about the complexities of the royal family and what lessons we can learn from this (world famous) family business.

A good governance structure needs to be in place to make sound decisions as the business transfers from one generation to the next. For a family business, this means having governance over the business and the family. I see many great family businesses successfully get the business governance right, only to miss the mark on getting a good governance framework over the family too.

Family business struggles when they do not have the relevant structures in place to enable effective communication. Just like the Windsors, every family needs an outlet to communicate effectively.

BDO partner and family business expert Suzy Munt.

So, how can this be remedied? Just like having a board of directors, company constitution and policies and procedures, a family should consider if a family council, family charter or family policies and plans are relevant for them.

A family council can help provide a forum for family communication and clarification of both family and business matters. It’s the conduit between the business’s board of directors and the family, allowing for family matters and business matters to be kept separate yet intertwined effectively and efficiently.

As the family business grows and evolves from founder, to sibling partnership, to cousin consortium, the complexity of the family decision-making grows with it.

Businesses with both business and family governance in place are setting up for success for generations to come. Succession planning should be seen as a process, not an event.

As we usher in a new era under King Charles III, all eyes will be on how he navigates such a complex family structure while carrying out his royal duties and responsibilities.

Suzy Munt is a family business expert and partner at BDO in Brisbane.