University Externado

For this reason, the family protocol is a unique opportunity so that its members would agree in the way in which are listed in the company and that can affect it. It is essential that written covenants become the bread of every day in the companies, said Serna. Given its importance, it is worrying that in Colombia barely 13% of family businesses have structured a family Protocol, according to an investigation by the University Externado of Colombia. The Protocol is not a table of salvation, but it is an excellent instrument to regulate relations and prevent future conflicts, say the authors. 8 To structure a model of governance as families grow and grow their businesses, it is necessary that their meeting spaces acquire certain formality.

Why are so important government bodies in family enterprises that must take into account its own characteristics. According to their size and interests, companies adopt the organs of Government that best suit them. The authors divide them between family members and the company. In family bodies include the Council and Assembly family, which constitute the communication channels of the families. The business ranging from an external adviser, the Advisory Board and the Board of Directors. In conjunction with the family Protocol, these organs structured corporate governance of family businesses. 9 Promote a code of good governance one of the strengths of the family business is that, being the family tied to the company’s reputation, this tends to be more prudent and have most deeply rooted values, says Professor Ignacio de la Vega, of the Instituto de Empresa, Spain. For this reason, family businesses should try to transmit their values and philosophy towards the future.

Way of doing this is to adopt a code of good governance that guide future generations. This code, in addition to promoting ethical values, contains the agreements that govern the behaviour of the members of the family in their relationships and work performance. Serna and Suarez, these codes are crucial in the new business environment to access capital or conduct business abroad. 10 Succession succession planning is seen as the central theme of a family business and, at the same time, the most difficult to handle. According to Serna and Suarez, for this reason in Colombia most of companies fail to a second generation. In fact, the founder directs 60% of companies in the country. The issue is crucial because it requires a very particular businessman. On average, the founder of a company working 35 years, proof of its difficulty to leave the control. Likewise, conflicts of interest among potential successors and ties of loyalty to the founder complicate the issue. According to the book, the planning of a succession process can take between 3 and 10 years. The key is that the founder understands his role as mentor and that its responsibility at the end of its management is conducting this process in the best possible way.

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