The following figures graphically illustrate some of these differences. As Figure 1 shows, in the publicly-held business model the relationship is linear, with the board expected to represent the best interests of the shareholders and monitor the activities of management as well as to advise management. Trust One cannot take trust for granted in a family business. As in other aspects of family relationships, a key factor in building and maintaining trust is communication. In this respect, it is important for members of the family to consciously and deliberately plan how to communicate about the business in addition to whatever informal communication takes place at, say, the dinner table.
Informal communication tends to miss some people.
Additionally, it is important for the family's health as a family not to always be focused on the business. Most successful family businesses have specific Family Council meetings about the business that include all family members. These are in addition to formal board or committee meetings. They may be annual, if the family is large and scattered around the world, or they may be more frequent. They are formal meetings with an agenda and minutes and they deal strictly with the business, not other family matters.