by Daniela Montemerlo, Ph.D. and John L. Ward, Ph.D.
The two most effective practices implemented to protect and preserve the family business are '1) to build an independent board to strengthen the business and 2) to draft a Family Agreement to strengthen the family.' This book is about the latter: The Family Agreement.
The authors, Daniela Montemerlo and John Ward discuss the three main reasons why a business-owning family would create a Family Agreement. Family Agreements foster the company?s successful development, maintain ownership unity and commitment and reinforce family strength as a family.
Drs. Montemerlo and Ward outline how Family Agreements provide the vision that strengthens the resolve and devotion of ownership. They discuss the types of Family Agreements and how each type reflects certain assumptions about the business and the family.
The Family Constitution: Agreements to Secure and Perpetuate Your Family and Your Business 'provides a comprehensive framework for understanding the subject and a thoughtful approach how on to execute it well.' In its pages you?ll learn:
the fundamental components of a family agreement;
the differences between an owner's contract, family business protocol, family statement and family constitution;
the purpose of family agreements;
what comprises each section of a family agreement;
why the family's values and beliefs are important to the process;
why the process is as or more important than the content;
how to understand whether your agreement will succeed or fail;
the timing and the process for reviewing and amending the document;
and much more.
The Family Constitution: Agreements to Secure and Perpetuate Your Family and Your Business is designed to be useful to those families who are starting down the path toward a Family Agreement, for those who are trying to decide whether to begin or not and for those families who already have a Family Agreement and feel it is time to reassess it. This book will also help those families who have tried to write a Family Agreement in the past but for whatever reason have not finished the work.
The Family Constitution: Agreements to Secure and Perpetuate Your Family and Your Business is fast reading with real life examples, practical tips and 25 useful exhibits.
'The authors address a most critical and delicate topic in a concrete and thought-provoking way, without imposing pre-defined solutions. It is clear that the book is a result of practical experience. Anyone concerned about their family business should read it, even if they have not yet planned a family constitution, to reflect upon the future.
Michele Alessi Anghini
'The concept of a 'Family Constitution' is a powerful one. Not just for the ?family? but also for the non-family executives. Daniela Montemerlo and John Ward?s book provides both a comprehensive framework for understanding the subject and also a very thoughtful approach on how to execute it well. It will be of value to those about to develop or revisit a family agreement or constitution. I totally subscribe to their premise that it's the 'going through the process' rather than 'striving for the perfect document' which is the outcome where real value for both business and family is realized.'
The Clinton Devon Estates
'The authors have combined their theoretical preparation with their wide practical experience, giving us a new, very actual vision on family constitutions' formulations and on their effect over time.'
AIdAF, Italian Association of Family Firms
'The book provides an insight to a structured way of creating a family constitution which addresses all possible issues. Personally, we as a family would not have been able to make such a robust constitution for our business without the help of this book.'
A.V. George Group of Companies