When a family is just getting started in business, it is quite common to rely on casual conversations and brief business discussions around the kitchen table or during holiday gatherings to keep the family connected and engaged. However, once the family expands beyond Mom, Dad, and the children, families often struggle to share information effectively, coordinate around decision-making, and manage the critical interface between the family and the enterprise.

At this point, many families who are committed to continuity consider hosting an annual gathering (a.k.a. family assembly) and launching an executive committee (a.k.a. family council) to lead the essential work of family governance. That said, there’s more to creating an effective family council than gathering a few family members in a room and asking them to plan a holiday dinner.

At its best, a family council is a working group that serves at the discretion of the family as a whole, managing activities that provide engagement and education and support effective communication. This group of family leaders often gathers input and articulates the family’s core values, purpose, and vision. It also develops policies around employment, conflicts of interest, and codes of conduct, and serves as an executive committee of the family assembly, strategically designing and delivering these important annual gatherings.