A family constitution is a contract between the family members of the company that regulates important issues such as family members expenses, the regulation of relations between family members and professionals, the selection of succession, the structure of the family council and the board of directors, and the interaction of members with each other. A family constitution is an important step for the continuity and sustainable success of a family business for generations.

The most important purpose behind the desire to create a constitution is to ensure that the functioning of the company and the mission of the family can be properly transferred to the next generation and entrusted with certain rules.

The ability of family businesses to make quick decisions, to have a success-oriented team united around family values and a high level of employee loyalty, and the family’s identification of the company with their own family reputation and putting the success of the company ahead of even their private lives bring success and growth together.

The family’s willingness to institutionalize, its readiness to support the decisions to be taken by family members and professional managers responsible for execution in such a transformation process, its ownership of the project, and its readiness to change its own behavior and decision-making habits in the new structure are among the most important success factors for the successful completion of this transformation.

It is important for businesses to work with experts who are suitable for their own corporate culture and who have successfully completed similar transformation processes in the institutionalization process.