A Board of Directors or Advisory Board provides structure for the operational side of the business.

As the Management Circle is the wealth engine, the Board of Directors (or Management Board) needs to ensure that the business is competitive in the marketplace and financially strong. This is the strategic planning area of the business.

A Board of Directors is a communication and governing structure for the day-to-day operation of the business. Its purpose is to separate management issues from those of ownership and family, while ensuring the business has a direction for the next twelve months.

It is the responsibility of the Board of Directors to approve and monitor a Dynamic Business Plan, a Financing Plan, and a Continuity Plan.

The family can benefit tremendously from such a governing body that includes the perspective of someone with experience in business management but, who is removed from the relationships that often colour our judgment.

The Benefits of Implementing a Board of Directors

• Monitors the marketplace and adapts the strategic plan as the marketplace dictates

• Enables the common interest to continue to be the focus in addressing issues in the family business

• Develops structures that connect the long-term focus for the business to the day-to-day operation and ensures opportunities are taken

• Oversees the management team

• By adopting some formality in this area and holding regular meetings, you will promote a more collaborative approach to managing your business.

For more information, contact us today.