ADVISORY BOARDS: Not Just for Big Companies Anymore.

DO YOU EVER catch yourself saying, “why change, we’ve always done it this way” or “I mentioned that idea before, but no one listened” and “I wish we could do this, but it would hurt his feelings?” As small businesses, we have a unique ability to make clear- cut decisions and not get caught up in the bureaucracy. Unfortunately, this same advantage also goes against us, when we are faced with growing the business and making critical decisions. Everything works well when we are in agreement with each other about the strategic direction of the business. But when we are not on the same page, we get bogged down making decisions and deciding on the direction of the business, because our personal feelings often get in the way and impede us. More…

Selecting Advisory Board Members – How Important is Family Business Experience?

Textbook theory will advise you to resolve your family issues before forming an advisory board. It’s most commonly referred to as “keeping the family baggage out of the business.” Ideally this should happen, but in real-life it rarely does.

Experience shows us that family issues usually spill into the business and this is just part of being a family business. You should diminish these personal issues as much as possible, but don’t expect to eliminate them entirely.

Ideally we would like to keep advisory boards free of these issues. In reality many of the family issues are intertwined in the business and are the cause for many of the obstacles in implementing new initiatives and strategy. Even though the major topics will focus on non-family issues, inevitably you will discover that family issues will creep in often as hidden issues. Many advisory boards are setup because the family has difficulty communicating, reaching consensus, and afraid of hurting each other’s feelings.

Understanding that we need to deal with some of these family issues with the advisory board will influence the makeup and chemistry of the advisory board members.

Importance of Family Business Experience

In addition to selecting members who can bring some new skill or experience to the board, also consider bringing in members who may belong to other family businesses. Even though family issues will be a minor topic, it helps to have members with some background in family business to better relate and be more patient with the family.

Choosing board members with some family business experience can help.