Many family businesses proudly craft detailed constitutions yet may fall apart. The reason: a family business constitution is only as good as the courage to uphold it.

A family constitution is a written agreement detailing the shared values, roles, decision rights, succession plans, and conflict resolution protocols. Families draft it to create a cohesive view of how they want to work together both today and in the future. Families invest in it to create alignment and safeguard legacy.

A constitution, in principle, creates clarity that leads to stability and unity; however, without the courage and will to enforce agreed-upon policies, constitutions fail.

 What Does “Courage” Look Like in a Family Business Context?

Courage is nuanced in the family business context. It stems from self-awareness and deep understanding of governance. It also stems from a sense of duty to legacy. Family businesses are replete with paradoxes and dilemmas. Often, one stands at a crossroads where choices affect both business and family considerations.

While families can afford to err on the side of the family when the magnitude of the business is small both in terms of size and family strength, this approach becomes unsustainable as the family business grows.

Families appreciating this dynamic choose to create the family constitution. However, many may fail to because of fears such as:

• Fear of confrontation: Addressing difficult conversations e.g., about underperformance, entitlement, or succession readiness.
• Fear of upholding roles: Respecting agreed boundaries, e.g., who sits on the board, who stays out of operations.
• Fear of letting go: Seniors handing over leadership when it’s time.

• Fear of inclusion/exclusion: Making decisions about who joins the business based on merit, not emotion.
• Fear of mediation: Engaging in honest conflict resolution processes when tension arises.

For constitutions to succeed families need to appreciate that a paper doesn’t implement itself; rather, people with courage do. Courage is, then, the real governance mechanism.

When actions match the constitution, credibility grows whereas a lack of courage leads to cynicism about the value of a constitution.

To build a culture of constitutional courage families in business can:

• Hold regular reviews

All family members, especially new family members joining the business, should not only receive a copy of the constitution but also be debriefed on it. This is to ensure there is utmost clarity and little room for misconceptions.

In addition, families should revisit and reaffirm the constitution annually.

• Storytelling

Acknowledge and celebrate examples where family members chose principle over comfort. Alternatively sharing examples of unsuccessful families primes the family to appreciate the importance of upholding the constitution.

• Empowered family council

Without an empowered family council there can be no accountability and enforcement. The family council is the primary forum for discussing family-related business matters, educating family members, and overseeing the constitution’s implementation.

• Training & coaching in unconscious biases

Although unconscious biases operate outside our conscious awareness and control, they may influence our decisions and actions. Training to address biases equips individuals with self-awareness and tools to act objectively.

Conclusion

A family business constitution is not a magic wand. It requires courage to act upon. Legacy is preserved not just through vision, but through the discipline to honor shared commitments, especially when it is difficult.