A board of directors can assist in intergenerational change
We have seen great success with board of directors for companies going through intergenerational change. Should you consider establishing a formal board of directors?
Establishing a formal board of directors and maximizing its usefulness may not appear to be high on your priority list, but as your business grows and prepares to go through a change of management from one generation to the next, having an active board can provide significant advantages.
The board can assist in clarifying roles and responsibilities and hold people accountable in a way which can be difficult in a parent/child relationship. The board can bring additional skills and experience to the business and assist in developing the leadership capabilities of the next generation.
The most effective boards are comprised of diverse, independent and experienced people who will be forthright in offering advice, guidance and opinions. Do not waste the opportunity with inexperienced or “yes” people.
Peter Wallace, Managing Director of Endeavour Capital has over 25 years non executive director experience and can assist in developing a high performing board of directors or advisory board.