Typically, families follow a traditional governance approach, which is essentially in place to “govern” the human beings within the business, similar to the rules we have in society. We all know to keep a certain speed limit or to NOT use our phones while driving, yet many of us continue with our poor behaviour and don’t follow the rules, which are in place to govern us and keep us safe.
Yet, thoughts, emotions and feelings between family members (behavioural risk) are not addressed in ‘traditional’ governance. Instead, conversations that need to happen go unsaid and unheard for years. Emotional governance creates a framework for these conversations to happen in a safe environment, based on the guiding principles agreed by the family themselves.
By agreeing to and embodying a set of guiding principles, along with rules and consequences for poor behaviours, the family has in place a tool to assist with the management of the behavioural risk of its family members. They feel safer because all the participants are on an equal playing field, each responsible and accountable to embodying and “living” the agreed-to guiding principles.
Emotional Governance plays a critical supportive role to legal and traditional governance, and without it every family runs the risk of their strained family dynamics costing the business financially, and disrupting harmony, stability and eventually its generational survival.