From the family point of view, the protocol should help promote the unity and harmony of the members and foster their commitment to the continuity of the company in the hands of the family, preserving in it the values that knew how to make it strong.
The rules established in the protocol can be rigid, such as the fact that the child has a certain education, or they can be lax, describing the permission to integrate family members without professional competence.
The key to success is that there are clear rules that are properly communicated and explained to each member of the family group. Ideally, these rules should be legitimized by the parties before the time comes to enforce them.
In all cases, even when it is necessary to modify these rules, it is vital that all those involved perceive the benefit of following this exercise.
It is always advisable to go from the general to the particular, first defining the framework within which PE is developed. Starting with the vision that members have on the future development of the company. In this way it becomes easier to advance on the particularities of the protocol, taking into account the details of that agreed vision.
Basis for writing the rules.
- When and under what circumstances the children will be able to work in the company, this implies defining: required education, previous experience, if a vacant position should be generated, or in case of need to define the position, minimum age of entry to the company, if the re-entry in case of voluntary or involuntary resignation, if part-time work will be allowed, if in-laws will enter and under what conditions, if all children or those who meet certain conditions will be able to enter, resolution before divorces. Express values and beliefs that you want maintain.Vision of the group on the future of the company.Define what type of PE wants to consolidate, size, local or international, type of businesses in which to participate, etc.Method of evaluating the performance of family members in PE. This is one of the least developed points in PE,Generally, there is no real awareness of the dimensions to be measured, and you end up weighing loyalty, dedication to work, or other requirements not contrasted in non-family businesses. Defining an evaluation framework that considers the labor results achieved is the most effective way of weighing up on values of real competition. This is not easy in RUs, where many times the evaluated are “judge and party”; reason why to stipulate it in the protocol is the best way to install an efficiency mechanism. Define what the promotion will be like, how the presidency will be accessed, if a non-relative will be able to access it, and the same for the management. of remunerations. In PE, the remuneration for formal work must be separated from that perceived as having capital.Establishing the system in terms of labor competence avoids breaking the harmony in the family group. Conflict resolution method, beyond the attempt to anticipate conflicts, it is often difficult to see them in time; establishing a resolution mechanism for them is a first approach to solving them. Description of rights and attributions that are incumbent on the AF and the CF. On the property: Specify how to access the property, pact of syndication of shares for the purchase -Sale (not for votes), Determine the criteria for setting the share price, stipulate alternatives for the case where a family member wants to dispose of their shares. Establish a preference criterion in the purchase of the same.Specify criteria for the limitation of business units that could compete with the EF, by family members independently. Define how the needs of the family will be met, establish the company's dividend policy in terms of the needs that may emerging. This is the item where the future retirement of the directors and the corresponding succession must be contemplated.
A Help Box Mode
- The reason for this protocol Common values to maintain Philosophy on family businesses Our challenge as a company and family Strategic formulations: Vision - Mission - Objectives - Strategy Policy of dividends and financing of growth Governing bodies: Family Council - Directory Management systems: System. Evaluation - Remuneration - Planning and Control Transfers of actions Criteria for the entry of relatives
By way of conclusion, it is worth emphasizing that the challenge faced when establishing a family protocol as a result is that of incorporating into daily work, a habit based on practicing an exercise.
The habit of being organic to the organization and its regulations, to understand that the resolutions taken by the group deserve the support of all the parties, and the degree of commitment and compliance with the rules will depend on the degree of fairness, transparency and understanding of the established rules.
