Document the decision authority and the checks on it, in writing, before the new CEO takes over. Kris Kluver, in The Dysfunctional Family Office, has Steve Mitchell make this exact request to his sister Gail when she becomes CEO. Put it in writing. Not from distrust. From wanting both siblings still to be speaking in ten years. Ryan calls it the kind of clarity that protects relationships. The instinct to skip documentation, because we all trust each other, is what destroys most sibling-led family businesses. Trust today doesn't survive every disagreement to come. Written authority and explicit checks let siblings disagree without it becoming personal. The CEO sibling has clear authority over operational decisions. The other siblings have clear voice on ownership decisions. The board has clear authority over strategic direction. Each layer can challenge the others within the rules. Kris Kluver works with sibling-led family businesses on this exact documentation at thethirtyadvisors.com.
How do siblings keep their relationships intact when one becomes CEO over the others?
From: Ch 12: From Alignment to Action
Also asked
- document decision authority family business
- clarity that protects sibling relationships
- I trust my sister but I want this in writing so we're still talking in ten years