Family governance checklist: Build a framework that supports the enterprise

It’s never too early, or too late, to establish family governance, an essential component of a successful family enterprise. Family governance is a framework for overseeing the family’s mission and values, making informed decisions and channeling resources effectively. Even if previous attempts have fallen short or struggled to gain traction, a family governance framework is a must to ensure families have a roadmap to follow when transitions (generational, ownership, capital structure and so on) or other inevitable changes arrive.

Whether starting fresh or refining what exists, taking the time to thoughtfully stand up governance equips families to make values-aligned decisions when it matters most. Read on for a six-step guide to establishing the most important components of your family governance tool kit. 

• Involve everyone early on in setting expectations and norms
• Elect the family council
• Draft the family constitution
• Schedule an annual family meeting
• Establish or align the family office
• Preserve the legacy with effective governance

1. Involve everyone early on in setting expectations and norms

Before building a governance framework, families need buy-in from all generations. It’s common for any generation, especially a founding one, to feel that the rules and structures they’ve already put in place have laid the groundwork. But if those rules aren’t understood or embraced, future generations may not follow them. Family governance is as much about how families engage and make decisions as it is about the decisions themselves.

Embedding this kind of governance into the family’s culture and vision transforms it from a static set of documents and agreements into a living system with structure and family forums. For current leaders, inclusivity becomes more than a gesture and serves to instruct, set the stage and preserve influence across generations. For everyone, governance becomes a shared rather than an imposed process.

Start by assembling all family members above a certain age who meet agreed-upon criteria; often spouses and in-laws are included. Invite this group to help shape the governance journey. This is the moment to clarify rights and responsibilities of family membership and to frame essential questions (e.g., What do we want our wealth to do? What do we stand for?) before diving into structures like investment committees or a family office.

When the family assembly invests in the preparation needed to build understanding, trust and alignment, it greatly increases the likelihood of governance accurately reflecting the family’s values and being embraced across generations.

Key steps include:

• Educating all members on what family governance is, why it matters and how it supports long-term stewardship
• Establishing ground rules for communication and behavior to foster respectful, inclusive dialogue
• Defining voting or other decision-making processes to clarify how decisions will be made and who participates
• Implementing feedback structures to ensure all voices are heard and considered
• Articulating expectations for time commitment, emotional investment and participation
• Determining the role of an outside facilitator to keep families focused and forward-moving, manage tension, and translate dialogue into decisions

Setting these parameters can be emotionally charged. But it’s a critical step in making sure every eligible family member has a voice and feels respected and valued throughout the process.

2. Elect the family council

Once shared expectations are set, it’s time to elect a representative body drawn from the family assembly to guide governance. While the family council’s authority and structure may vary, its core purpose is consistent: to advance the family’s goals, facilitate communication, and shape policies and practices that reflect shared values.

The family assembly should nominate five to nine members for the council. Ideally, families will include members from each generation, family branch or role in the enterprise. As the family grows, councils may select members not just as representatives, but as stewards of the family’s collective interests.

The family council should meet at least quarterly and function similarly to a board, with a chair and vice chair to facilitate meetings and report back to the family assembly. Common responsibilities include:

• Drafting the family constitution and related policies (e.g., family employment)
• Championing family priorities through subcommittees and task forces
• Coordinating education, development and activities that strengthen family bonds
• Supporting alignment with the family office
• Serving as the bridge between the family and its enterprise structures, including the family office, family business governance and other entities
• Representing the family’s voice in interactions with external stakeholders
• Creating a stepping stone to broader leadership roles within the family enterprise or formal boards

3. Draft the family constitution

Sometimes referred to as a family charter, this formal family governance document outlines how the family operates, establishing clear guidelines and principles that help it manage assets, navigate conflict and foster unity across generations.

The family constitution can be two pages or 200—the length matters less than its authenticity and active use. The family constitution should codify the governance structure, and even if in short form, it should include:

• The roles and responsibilities of all family governance structures, including the family assembly, family council, family office, and any committees and boards 
• Membership criteria and rights for the family and family governing bodies
• Decision-making and communication protocols
• The family’s mission statement and values
• The scope and authority of family governance, explicitly addressing how it connects and coordinates with other governance structures across the family enterprise

The constitution may include policy and guidance on topics such as investments, family employment, succession, family education and development, philanthropy, family retreats, traditions, vision, and continuity plans. Some constitutions serve as a record of the family’s history, including the journey, the mistakes made and the hard-earned lessons that shaped the family’s legacy. This storytelling component can be an invaluable resource for future generations.

The family constitution is a living document. Establishing a structured process for reviewing and amending it over time ensures that it stays relevant, reflecting evolving priorities and purpose.

4. Schedule an annual family meeting

This is a cornerstone of effective governance. Ideally, the first meeting happens early in the process, helping the family align on its mission, form the council and draft the constitution. Even if the agenda is abbreviated, the meeting sets the tone for collaboration and inclusion.

These annual events are not just for reflection—they’re where families address key issues, make decisions and resolve complex topics. Whether addressing succession, defining priorities or alleviating tensions, the meeting provides a structured forum for meaningful dialogue.

A well-balanced family meeting also blends education and connection with governance. It’s a time to revisit shared values, engage across generations and shape the future together. Some families also host breakout sessions or submeetings focused on specific generations or sectors.

Over time, the meeting becomes a living expression of the family’s mission and identity that family members across generations anticipate and enjoy. It reinforces governance not just through structure, but through shared experience. While these events can present scheduling and logistical challenges, prioritizing annual in-person time together is a hallmark of the strongest multigenerational families.

5. Establish or align the family office

The family office exists to support the family’s collective goals for its wealth—not to dictate them. But it’s easy to get this critical nuance wrong. Whether a family is creating a family office for the first time or refining an existing one, the goal is the same: Ensure the office operates in alignment with the family’s governance framework, collective decisions and needs over time.

Depending on the family’s complexity and goals, the office may provide:

• Investment management
• Tax and estate planning
• Financial planning
• Risk management
• Property and asset oversight
• Education and development programs
• Philanthropy and environmental, social, and governance coordination
• Continuity planning
• Concierge services and event support, including family meeting logistics

A feedback loop between governance structures and the family office is essential, so specific services, roles and priorities can be reshaped as the family’s needs change. The office will manage strategic, functional and administrative aspects of family wealth and affairs, freeing family members to focus on leadership, legacy and purpose.

6. Preserve the legacy with effective governance

Establishing governance early—defining roles, building buy-in and codifying purpose—isn’t just good practice. It’s how families stay connected to something greater than assets alone. And while the work may be uncompensated and can sometimes be alienating, it’s often the most critical factor in long-term continuity. It’s rarely the technical missteps that pose the greatest threat to a family’s cohesion; it’s the breakdowns in trust, communication and shared purpose.

Even the most capable family office can drift out of sync with the family if there is no clear connection with family governance. When this happens, the office often ends up focusing on financial management at the expense of relationships, relevance and purpose. Over time, this misalignment risks making the office an institution that serves the assets but not the family itself. Active connection with family governance keeps the office attuned to changing goals, new generations and the broader mission of stewardship.

Ultimately, it’s the “soft stuff” that holds families together. Families that embrace governance thoughtfully and proactively are more likely to preserve not just their capital, but their cohesion and purpose, mitigating risks across transitions, generations and time.