What Is A Family Advisory Board?

The board is a body of ‘elected’ or selected members who oversee the activities of a business. The focus of the board should be to add value to your business and improve processes. The board’s role is to determine business goals and objectives based on the owner’s succession plan or goals and wishes and to develop and nurture business relationships with suppliers and customers.When it comes to deciding on board members, you need to opt for trustworthy members with focus and relevant experience and expertise. A board member should have integrity and act ethically at all times. You will also need an experienced leader on the board. It is a good idea when appointing board members to look for trusted people who can provide skills and insights other members may not possess, e.g. accountant, lawyer, farm advisor, banker.

The board’s role is to determine business goals and objectives based on the owner’s wishes and values and to develop and nurture business relationships with interested parties (i.e. future owners, customers, suppliers, lobby groups).

Your role on the board will include establishing objectives, making sure adequate resources are available (including finances) and approving budgets.

It is a good idea, where it is a family business, to have a few independent board members to defuse potentially emotionally charged conversations or issues where they arise.