Understanding and Harmony
When a family decides to stay in tact and work together to manage the family’s combined resources, there needs to be a social contract for how this will work. Good family governance will outline who will make the decisions – will it be a few people or a family counsel?
How will they communicate information to the rest of the family? How will the family know they are doing a good job? It sets a clear understanding and agreement for how the family operates which increases efficiency and harmony in the family.