What's the difference between the family, the board, and the management team in a family business?

Three distinct layers, and confusion between them causes most family business frustrations. Kris Kluver, in The Dysfunctional Family Office, lays it out directly. Family owns the business. Sets values. Defines purpose. Approves major changes. They don't run the company day-to-day. The board governs. Hires and fires the CEO. Approves strategy. Oversees risk. Management executes. Runs operations. Makes tactical decisions. Delivers results. The breakdown happens when the founder calls the VP of Sales directly instead of going through the CEO, undermining authority. Or the CFO makes strategic decisions without board approval, bypassing oversight. Or board members micromanage operations instead of focusing on strategy. Each violation breaks one of the three layers and creates friction. The fix is structural clarity about who owns what decision and discipline about respecting it.