“Why would I spend time and money creating a board that I would have to report to?”
It’s the question the founder and CEO of a 25-year-old company asked after he restructured his company for better management. Many family business founders and owners feel the same way—why should they invest in an independent board? They mistakenly think boards are typically for public companies or corporate giants. Independent boards are a powerful tool for long-term success for a family business.
Independent boards bring accountability and seasoned insight to a family business. One of the most critical times to have an independent board is during succession.
When ownership and leadership shift from the founder to the next generation, a board helps untangle conflicts of interest. It can also support inexperienced successors and ensure that decisions are made with the entire ownership base in mind.
Succession planning is only one benefit of an independent board. You can read more about the benefits of an independent board—and analyze a real-life scenario—in this article.
Read about the benefits of an independent board here.
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