Scott Family Enterprises (B): Addressing Family Goals and Visions in the Family Enterprise

A large family business in banking and ranching is shifting leadership to the next generation and has developed a protocol to select board members agreed upon by all. When the selection occurs, it is not made in accordance with the protocol and a third generation family member questions why the selection rules were changed by second generation members without input or vote. The case highlights the growing pains of developing fair processes and guidelines for nominating and selecting board members, meeting family expectations, communicating with constituents, and encouraging active roles in governance at the cousin-stage of a family business.