The role of the family council and protocol in planning the succession process in family firms
Journal of Family Business Management
ISSN: 2043-6238
Article publication date: 22 May 2020
Issue publication date: 21 October 2021
Abstract
Purpose
The main objective of this study is to understand the role that family council and protocol can have in the planning process of family companies.
Design/methodology/approach
To reach this general objective, the qualitative approach was used using multiple case studies: seven Portuguese family companies. Data collection techniques, interviewing, direct observation and documentary analysis were used.
Findings
Based on the empirical evidence, it is concluded that the family council and family protocol help succession planning and favour the continuity and survival of the family business. However, other working groups also support the entire planning process, such as the cousin generation meeting and the New Generation Monitoring Committee (or Mentoring Committee). The development of future personal plans for the younger generations may lie in this Committee, which assists and guides the younger family members.
Practical implications
This study is pioneering in Portugal because it analyses the use of new instruments that helps the succession planning process in family firm context: the family council and family protocol. These managerial mechanisms allow to achieve the success, allowing family conflicts to be minimized, the continuity of family firms and avoiding their mortality.
Originality/value
The study contributes to increasing knowledge about the family council, the family protocol, family firm succession and its planning. It is important and innovative by studying those topics in depth, their connection being little explored in the literature. This study can be seen as a benchmarking for governance practices in other countries.
Keywords
Acknowledgements
The authors are grateful to the anonymous referees of the journal for their extremely useful suggestions to improve the quality of the paper. Usual disclaimers apply. The authors gratefully acknowledge financial support from National Funds of the FCT – Portuguese Foundation for Science and Technology within the project (UIDB/04007/2020).
Citation
Matias, C. and Franco, M. (2021), "The role of the family council and protocol in planning the succession process in family firms", Journal of Family Business Management, Vol. 11 No. 4, pp. 440-461. https://doi.org/10.1108/JFBM-01-2020-0004
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited