Why Your Family Business Needs Family Members on the Board

In the wake of the pandemic and rising geopolitical tensions, many family business owners have woken up to the reality that the absence of a competent and engaged board undermines the resiliency of their family enterprise and poses a significant risk in an era of greater turbulence and uncertainty. What’s more, if family representation is missing from the board, it is difficult to align the interests of the owners with those of the company in a sustainable way. Understandably, boards often focus the bulk of their attention and oversight on what’s happening “below” them with respect to strategic planning and execution. In family companies, however, boards also need to track what goes on “above” them, among the owners. That’s what makes having a family director on the board so important — they’re ultimately accountable for aligning the competitive strategy for the business with the continuity strategy of the owners. The resilience of the family enterprise…

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This article was written by Ivan Lansberg and originally published on hbr.org