Effective Family Councils and Family Forums

Listen to the Taylors, a 3rd generation winemaking business family operating Taylor Wines based in Clare Valley, Australia, describe how their inclusive family governance mechanisms, such as family meetings and forums, enable them to communicate effectively and avoid major conflict. <p><i>(Taylor Wines are known as Wakefield Wines in the northern hemisphere due to trademark restrictions)</i></p>

<strong>Mitchell Taylor</strong> We believe communication is very important to make sure you do not get areas of conflict. So we have a family forum where all the family members get together and meet once a year. And we also have what we call family council meetings. <strong>Roger Reidy</strong> It has been a particularly useful mechanism for the family. So I facilitate regular meetings of the family forum, which is the broad, more like a celebratory opportunity for family. And then the family council, which is actually the decision making group representing the ownership. And their role is to explain to the board of directors what it is they would like, you know, how they would like the family company managed. <strong>Clinton Taylor</strong> They are the main structure that we have got in place. The board has family members, an aunt of mine, my father, two brothers are on the board, so there is obviously a family element there. So it flows from the board down to a family council and a family forum. And they are great avenues for the broader family who do not necessarily work in the company to have a seat at the table and be heard, and ask questions, and be involved. <strong>Mitchell Taylor</strong> We have put in family structures that make sure that, you know, people understand that, yes, I am the leader of the family business but other people have roles within it. So there has been very little difficulty with that. People respect the decisions that are made, but we listen and have, you know, input from all family members. <strong>Clinton Taylor</strong> A lot of the big decisions do get kicked around the table, so it is a good process, it is an inclusive process. <strong>Mitchell Taylor</strong> Family council meetings are designed so that if there is ever, you know, some conflict or some tension that starts up, we do not want that, you know, being kept within the family business and starting to impact on not only family members but other people that work in the family business. So the idea is to take those areas of conflict and resolve them with other family members at the family council meetings. <strong>Clinton Taylor</strong> There is not a lot of clashing or disagreement within the organization. If we sort of, do disagree with things we, you know, it generally goes to consensus and consensus wins. We have got all these processes in place, but I think, which is a good thing we have not had to you know, have any crisis meetings or anything like that so it is working well. <strong>Roger Reidy</strong> If you are a broader member of the family forum and you have an issue, and you want it dealt with, you will speak to your friendly family councilor, and have it raised that way. And so the agenda is actually evolved, if you like, through family members identifying what it is they would like to talk about. <strong>Mitchell Taylor</strong> My advice is to communicate, have a family forum, try to build a bit of structure, and also enjoy the successes of the business because it is hard work that you do, but to always, you know, take that time to just stop, have a family meal, and you know, celebrate the successes too.