I’m a fan of good corporate governance particularly in family enterprises with the complexity or size that warrants having a (well) functioning board of directors. How complex and what the thresholds are for having a board of directors that has bench depth, structure and independence depends on a wide array of factors and are the focus of articles, books and blog postings throughout the family enterprise world. But, for today, I want to plant this seed in your thinking.
I believe the global community of family enterprises is awakening to and realizing the value and importance of good corporate governance and, more importantly, excellent management of those boards by qualified chairpersons.
Being the chairman of a family firm board is not like being the CEO. The CEO focuses on growth, profitability, strategy implementation, and the processes and structures that keep the business moving toward its strategic imperatives. The chairman leads the business’ governance function, not the day-to-day management of the company.
Yet, most family firm chairs are the men and women who were the company’s previous CEO. Do they know their company’s operations? You bet, thoroughly and deeply. But, do they have the skills necessary to be the chairman? Can they manage the board in ways which reflect shareholder expectations and ensure the CEO is receiving clear direction? Do they know what data the board needs and in what format to do its job? Can the chair develop accountability measures for both the board and management without alienating family managers and family shareholders? Is the chair ready and able to listen to director input and facilitate difficult conversations without resorting to the meeting management style s/he used when they were the CEO? Is the chair able to identify the needs for creating or dissolving board committees?
We believe the role of the chair is very different from the role and responsibilities of the CEO. And, we believe that the chair is not just another director. The chair has special responsibilities that add value to the company and help align shareholder expectations.
Today’s blog is inspired by and written in support of FBCG’s newly announced event, The Chair Forum. We invite family firm chairs to continue the conversation by joining us to share experiences, generate ideas and hone their skills at productive corporate governance. Click here to learn more>>
In my last post, I wrote about the need for families to celebrate and build memories. This week marks the 20th anniversary of The Family Business Consulting Group’s founding by Drs. Craig Aronoff and John Ward. Since then the group has grown significantly and we have consultants spread throughout North America serving clients here and around the world. We consider it an honor to build upon the foundation our founders laid and are taking time this week to reflect on all the hard work and effort that went into building an enduring organization that serves the needs of enterprising families.
When reflecting on our first 20 years as an organization we are most drawn to the many stories of hard work, creativity, perseverance, courage and even humor that are part of our history. These stories become the bedrock of our culture and continue to provide clarity around our core purpose. Ultimately, however, the impact our organization makes is determined not by our stories, but by the stories of those with whom we’ve had a chance to interact, either through consulting or through our writings and presentations. As we pause to reflect on our own first 20 years we want to thank all of you, our readers, who have made this journey meaningful and worthwhile. We look forward to being part of your stories as we begin our next 20 years of serving enterprising families.
Blog note: As in Chris’s previous post, we believe in the importance of building connection and history within FBCG. As a thank you to the consultants and staff that support families across the world, and in gratitude to their families who support them in this work, we gathered together to celebrate 20 years of service and collaboration. We’ve shared a peek at that event in the photos below.
What’s a celebration without cake?
Our youngest attendee, Rebekah, tries out the silly hat photo booth.
Releasing lanterns with notes of gratitude and for future success.
Closing out the evening with a little music and dancing.
The brightest oranges, whitest whites, deepest navy blues, sun-ray yellows: each World Cup game brings a different color combination to the field but that is just the surface excitement. Are the players tall, long-legged, loping and passing the ball in graceful arcs from toe to toe, using the entire length and breadth of the field? Or are they short and compact, firing the ball in focused staccato bursts shaped like tight triangles that keep mostly to the field just in front of the goal? Does the team wait until the final 5 minutes to unleash the full power of their athleticism, or do they hit the goal, hard, in the first 60 seconds of play? Who flips and flops on the field after the appearance of a foul, and who springs up for more play after being flung to the ground or elbowed in the face? Who lingers to clasp their opponent’s hand, to speak with them face to face, trading jerseys, and who falls to the ground, on their knees, in tears, in private pain?
The World Cup may be one sport, with one objective, but week after week it has served up a rich feast of group dynamics and individual drama. Innumerable variations were played on the themes of strategy and opportunism, physical power and mental command, supremacy and surrender and ultimately, victory.
Many paths to success. A lesson to inspire us all.