The Role of the Board in the Family Business

We believe the board of directors can play an invaluable role in the success of a family business. Just as management often has greater latitude in a family enterprise—for example, to take a temporary hit in profitability in order to invest for the long term—family company directors can play a uniquely helpful role. The family business board can go beyond typical boardroom conventions to explore broad questions of policy, philosophy, and planning, such as: Examining and helping to express the company’s mission and philosophy.Assessing the organization’s culture and determining its impact on the company’s effort to achieve objectives.Ensuring the family and business have comprehensive plans for the future, from establishing a family vision to estate, succession, and strategic planning.Improving the quality of strategy. This implies more than strategic planning and evaluating strategic choices. It encompasses all that has to do with strategic thinking—assuring the long-term survival, development, and prosperity of the firm.