Think of me like a river guide here to steer the company through the hecitc waters of the current business environment. I can add value to a family company and their leadership team.
Why does a Family Business need an Independent Director on its Board of Directors?
Pride, history, tradition and legacy are a few of the words that come to mind as we think about the family business. But there can also be a negative side: conflict, secrets, drama, nepotism, avoidance, privilege and bias can float just under the surface in many family-owned companies.
For multi-generation businesses, perhaps no feeling carries more weight than that of having to keep the family business going. The blood and sweat of the parents, grandparents, great uncles or aunts are manifested in the business. The reality, however, is that there are often legitimate reasons to stop a business in its current form. The industry and competitive dynamics may have drastically changed. Considering a split or sale of the business may be a wise business or family move. Many parents who own family businesses also hope that one, or all, of their kids will take over the business.
However, having the same last name as the business owner creates an expectation that regardless of intelligence, skills, goals or business acumen, it is assumed the namesake will take the helm. I would like to suggest that It will be important to admit that the best person to lead the company may not be a family member, it may be that the perspective of an independent director is needed.
The role of a board of directors is to stabilize and steer the business, connect the owners' values and goals to strategic decisions, and provide oversight and guidance to management. Creating an effective Board of Director (s) or Advisory committee can ensure that the family business continues to thrive and prosper into the futureBelow are some of the critical initiatives that an independent directors will deliver to the family business:
Objective Oversight and Guidance
Balancing Family and Business Interests
Strategic Planning and Decision-Making
Accountability and Performance Monitoring
Succession Planning
Attracting and Retaining Talent
Do you know of a family business that might be looking for their next independent board member?
Please think of me as that passionate river guide seeking a way out of the uncertainties.
I am that independent board member who possesses the governance skills to deliver creative and actionable solutions tailored to small and mid-size family-owned businesses. I will assist to empower their current board and/or the existing family executive team to thrive in today’s dynamic environment.
Please have them reach out directly; I thank you in advance for your support!
Tamara Alexander-Johnson
Board of Director for Profit and Non-profit organizations
