Audit of Family Constitution
In the past few years we have realised that while making of Family Constitution is a major and critical step in creating the Family Governance framework, it is the implementation of the Family Constitution that is critical to preservation and growth of family and business.
In our experience of working with different families we have realized the need and difficulty that families face in identifying areas of ineffective implementation.
Just like organisations need Internal Audits & Statutory audits to oversee the implementation of business strategy, plans, budgets, SOPs, statutory compliance, we think it is imperative for the families also to annually review its performance and effectiveness of the family constitution.
We have created a new tool (web based / mobile based ) to periodically measure the :-1. Happiness Level of the Individual Family Members,2. Strength of family bonds &3. Business robustness as assessed by promoters.This is essentially to measure the compliance of family constitution.
The tool is user friendly & takes approximately 20 minutes to complete. Once all the family members complete it, we present an individual as well as family wise consolidated report of measure of all the 3 dimensions listed above.
The usage of tool will create a record of family & business health over a period of time & will also highlight areas of Low Compliance & High Compliance.
This tool though standardised can also be customised as per the needs of the family.
We must understand however, that Audit is a tool for development and not judging and can be done while maintaining complete Confidentiality. A professional can help you with conducting an audit where multiple sub –dimensions of the constitution are rated by family and that helps in identifying areas of high and low compliance. It is then recorded to see the trend. The Audit can also be an automated one which is very easy to apply and understand.