Fairness can be questioned, and when that happens, family trust is fractured. A sense of betrayal of the family bond in a business is acute, emotionally charged and portends great danger to the enterprise.
Fortunately, those family businesses that do aspire to be multigenerational and multibranch can follow certain disciplines. Executed with rigor and led by the most senior generations, the adoption of shared values and rules can preserve order.
Read MoreTrusts attractive to family businesses
Successful multigenerational business planning is found at the crossroads of family governance, the business' sound financial performance and strategic vision, and the personal planning of each generation.
Governance is one of the most critical and forgotten disciplines any great business needs. Governance has several elements; among the most critical are ownership structure, control and oversight, compensation to those active in the business and those not, family hiring policies and requirements, and succession planning.