Write Before the Fight (Part 10)

Amna while finalizing the family literary series wanted to focus on one of the most important and comprehensive documents for family to facilitate wealth transfer to generations, which is “Family Charter”. It is also a very commonly referred document in the history of family business.

Family Charter is a document which summarizes the framework to deal with the solutions of family matters related to business. Family and business values both form the basis of Family Charter. Combining the vision and values which are supported by the structures like Family Council to provide the platform for the Family Charter. Therefore, it formalizes the structure of affiliation between family members and the business. ?

Amna emphasizes the importance of the Family Charter in her family literary series of articles, as she reflects on the outcome of implementing this document. Once the foundation is built, then the family will be able to witness the visible impact of such structural reforms through the formal documentation of this Charter. Family Charter will cover all the core areas of family business like employment policies, segregation of roles and responsibilities among the executive family members, ownership structure, leadership transition and most importantly formal communication.

This document will be regularly updated to help them stay competitive and up to date with the latest business practices. It’s worth investing time in updating the Charter because of the following positive elements:

·???????? Clear and transparent roles and responsibilities for all the owners and partners.

·???????? Strategic succession planning.

·???????? Conflict resolution mechanism

·???????? Consistent performance goals.

Lastly, Amna endorses the need for the contribution of every family member to the creation of the Family Charter. The larger the number of family members contributing to it, the better and long-lasting effectiveness can be achieved.