Managing the Trickiest Parts of a Family Business
"Serving on any board of directors is hard, but in a family-owned business, it's even harder. Unlike their public-company counterparts, which focus mainly on increasing shareholder value, family-business boards must act on behalf of stakeholders with multiple and potentially conflicting agendas - for example, co-owners with equal power and completely opposing financial timelines. And because interpersonal dynamics in family businesses are much more complicated, discussions of critical issues like leadership succession, compensation, and the performance of management often become uncomfortable, messy, and emotionally fraught. It's not unusual for family directors to shy away from them and, when they do, for the independent directors to follow their lead."
Click here to read the HBR article.