Selection Criteria

1. ELIGIBILITY

To be eligible for nomination for the Coutts Prize for Family Business, businesses must:

• Have their headquarters in England or Wales.
• Be wholly or mainly carrying on a trading activity.
• Be companies or firms where the family have significant influence over the company.
• Consider themselves a family business, though family members need not be involved in the management of the firm.

Please note that first generation family businesses are eligible provided they meet the above criteria.

A note on re-entry: Winners of the Coutts Prize for Family Business National Finals may re-enter after three years; winners of the Coutts Prize for Family Business Regional Finals after two. Other firms that were entered for previous year's prizes are, of course, free to re-enter this year.

2. GENERAL CRITERIA

(according to the size of the business)

In addition to these basic eligibility requirements, nominated companies/firms must:

• Be able to demonstrate a combination of high standards of family governance and corporate governance.
• Occupy a competitive market position and demonstrate consistent financial performance over time.
• Demonstrate a track record of charitable giving or involvement in the local community.

3. SPECIFIC CRITERIA

(according to the size of the business)

Examples of characteristics that the independent evaluation committees will be looking for include:

Family governance

• Family values are embedded in the culture of the company.
• The family can demonstrate how their ‘familyness’ is used as a competitive advantage.
• There are regular meetings where family members meet to discuss family, financial and ownership issues.
• The family can demonstrate a clear set of rules or structures governing and clarifying the relationship between the family, shareholders and the business.
• The company has a means of returning wealth to shareholders.
• Procedures are in place for resolving conflicts between family members.
• There is a strong emphasis on next generation training and development.
• There is effective planning for succession of ownership, which the family understand and sign up to.
• All family members clearly understand their roles and responsibilities and can demonstrate they operate as a cohesive group of shareholders.
• The family has a clear vision for the future of the business.
• The company has a means of returning wealth to shareholders.
• Procedures are in place for resolving conflicts between family members.
• There is a strong emphasis on next generation training and development.
• There is effective planning for succession of ownership, which the family understand and sign up to.
• All family members clearly understand their roles and responsibilities and can demonstrate they operate as a cohesive group of shareholders.
• The family has a clear vision for the future of the business.

Corporate governance

• The way the business operates, including the way it deals with customers and employees, reflects the benefits of being a family business.
• There are regular meetings where business managers meet to discuss the business.
• There is effective planning for succession of top family management and promotion of non-family members.
• Where appropriate the company has successfully integrated non-executive directors or other non-family members.
• The responsibilities of Chairman and Chief Executive are clearly distinguished even when they are performed by the same person.
• The dominant working family member's leadership style is consensual rather than autocratic.

Business strategy and financial planning

• Strategic decisions are taken with long-term goals in mind.
• The business has key performance indicators.
• Open communication is encouraged between directors, stakeholders, suppliers and advisers.
• There is a track record of performance in sales and profits.
• The business differentiates itself from the competition.
• There is a track record of innovation in products, services, technology and ways of doing business.
• There is a process for identifying and managing risk.
• The business makes effective use of outside consultants and advisers.

Corporate social responsibility and philanthropy

• The company can demonstrate that it acts in a responsible manner to achieve commercial and social benefit.
• The company can show a track record of charitable giving or involvement in the local community.
• The family can show a track record of charitable giving or involvement in the local community.