Launching a successful family council requires a bit of thoughtful planning— including a decision about its composition.
Ten, of course, there is the decision about which specific individuals will join the council. “In the very beginning, and often for a long time after, the composition of the family council will be segregated by family branches,” said Harms. “Each of four branches, for example, might designate two individuals.”
Yet, as family trees get more complex, branch dynamics can fracture. “It’s not healthy if branches turn into factions,” said Harms. In such cases, the company might start assigning representatives from a larger pool of prospective family groups, including those from multiple generations and stepchildren.
How big should the council be? Large enough to be inclusive, but small enough to allow for timely decisions. Te majority of councils range in size from six to twelve. “In some families, where everybody may want to be on the council, keeping it to a manageable size is a challenge,” said Harms. Other times, the converse is true. “Council membership can be an extremely thankless job, and if people who pour a lot of time into it feel their work is not appreciated, you can quickly run out of volunteers.”
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Now let’s return to the story that opened this article. A fifth- generation family business was facing the possibility that a required buy-back of a brother’s ownership shares might hamper future growth. What was the solution? Te company called a meeting of its family council, whose members decided to arrange for a new five-year note to fund the buyout, relieving the need to raid the company treasury.
“We were able to resolve the issue in a very collaborative way as opposed to people hiding their feelings,” said Brownell. “Tis was a nice conclusion because everyone felt their opinions were valued, and that their colleagues were in the business for more than just themselves.”
As this story suggests, family councils can help ensure the long-term success of an enterprise. If the benefits are obvious, the urgency is often unappreciated. “Te most common mistake is inertia,” said Brownell. “Change is hard, and it can be difficult to have the kind of conversations that lead to the formation of a council.”
Too, the very dynamics of a family council can seem counter-intuitive to managers who grew up in the top- down, hierarchical nature of traditional business operations.
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“Te most common challenge is marshaling the patience for a messy, non-linear management approach,” said Dartt.
For the same reason, there can also be a temptation to underutilize the council once it is formed. Too often, companies go back to business as usual, canceling scheduled meetings and letting things fester. Tat very reversion to seat-of-the-pants decision-making, of course, invites the very misunderstandings and resentments that a council was founded to obviate.
Te good news is that an effective council need not disrupt daily operations. “Even if a council meets just once or twice a year for three or four hours, there’s a lot of communication that can be done in that time frame to avoid conflict down the road,” said Eckrich. “Te family council can be a critical tool for spotting problems before they develop. I know managing a successful one is a challenge, but the payoff is pretty good for the folks who do it.”
Do You Have an Effective Family Council? Will your family council adequately deal with interpersonal tensions? Find out by taking this quiz. Give yourself 10 points for each “yes” answer to these questions. Ten total your points.
Does the family council have a defined mission? Does the council meet on a consistent schedule? Is there specific membership criteria? Is the council kept to a manageable size?
Does an educational program train future managers and board members?
Has succession planning been addressed?
Does your council maintain contact with the board of directors?
Is business strategy left to management?
Does the council reach out to distant family members?
Do you regularly assess the council’s effectiveness?
What’s your score?Over 80: Congratulations! Your company has gone a long way toward creating an effective family council. Between 60 and 80: Te council needs a bit of polishing. Below 60: Take steps now to get your family council up to speed.
Phillip M. Perry is an award-winning business journalist with over 20 years of experience under his belt. A three-time recipient of the American Bar Association's "Edge Award" for editorial achievement, Perry freelances out of his New York City office. His byline has appeared over 3,000 times in the nation’s business press, and he maintains a website at
www.editorialcalendar.net.
TPI Turf News September/October 2025
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