Most family businesses in Nigeria are governed at the dinner table, and for many years that works. Decisions are quick, trust is high and the founder knows every customer. Then something changes: a second generation joins, a bank asks harder questions, or the founder starts to think about stepping back.
Five signs it is time
First, decisions wait for one person. Second, family members disagree in front of staff. Third, lenders or investors ask who oversees management. Fourth, nobody outside the family has ever challenged a big decision. Fifth, there is no written plan for what happens if the founder is unwell.
A board is not a court for family arguments. It is a place where the business is put first.
How to start without a fight
Begin with an advisory board rather than a formal one. Invite two respected outsiders, perhaps a retired banker and an operator from a different industry, to meet four times a year. Give them proper papers a week ahead, and let them ask questions without anyone taking offence.
Agree a family charter alongside it: who can work in the business, how family members are paid and how shares pass on. The charter keeps family matters out of the boardroom, so the board can focus on the business.
What not to do
Do not appoint friends who will agree with everything, and do not hold meetings without minutes. A board that never disagrees is decoration. These are general observations, not legal advice, and every family is different.
For your team
Three questions to discuss
Where are we today?
Score your organisation honestly against the ideas above.
Who decides?
Name the person who owns this issue, and the date it will be reviewed.
What would we stop?
Every new habit needs something old to make room for it.
Questions
Readers ask
Can I contact the author?
Faculty answer questions at information sessions, or through the admissions office.
Is this advice for my company?
It is general information. For your own situation, speak to your advisers.
Where can I learn more?
The related programme page lists the sessions that cover this topic.
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Put two or three programmes side by side in the comparer, check the entry requirements against your own experience, then talk to an admissions adviser.