Creating an active board with the skills, savvy to help

Creating an independent board of directors probably is the most important move a family business can make on its journey to growth and success.

Creating an independent board of directors probably is the most important move a family business can make on its journey to growth and success.

But it truly must be independent in that the board cannot consist of just family members.

Developing and hiring a board of directors is the second step in family business governance.

As previously noted, developing an owner’s council is the first step. The owner’s council is composed of members of the family ownership who lay out the goals of the family to the board of directors as it relates to business and brand performance. The role of the board of directors, meanwhile, is to carry out the goals of the family ownership by holding the company’s executive team accountable to deliver results.

Many family businesses find it difficult letting “outside people in” and worry they will lose control. But, if you want to grow, you need to bring talent to the game to win.

This is where a board can make a tremendous difference. Besides, control isn’t what it’s cracked up to be.

The ideal board member is one whose expertise fills a gap in the needs of the business.

If you need business development, bring on a board member who has built a national sales team. If you need financial expertise, bring on a board member who has helped a company secure credit to expand.

Board members should supplement areas of the company that will help it be successful.

Here’s another point often overlooked about a board – it attracts talent. A well-formed board is connected to the marketplace, knows how to attract and see talent and understands the company’s success is based on talent.

LVB Business Events

2019 Health Care Symposium

Thursday, August 01, 2019
2019 Health Care Symposium

2019 CFO of the Year Awards

Wednesday, September 11, 2019
2019 CFO of the Year Awards

HR Symposium

Wednesday, September 25, 2019
HR Symposium

2019 Fastest Growing Companies Awards

Wednesday, October 23, 2019
2019 Fastest Growing Companies Awards