Forming an Effective Family Business Board: Advisory vs. Fiduciary
Family leaders considering formalized governance often ask: Do we need an advisory board or a fiduciary board? What’s the difference, really? Sometimes, questions around this decision slow progress toward engaging critically important external perspective and talents. Both advisory and fiduciary boards have the potential to bring great value to the business and to ownership, albeit with slight differences. In this session, Dr. Otis Baskin and Mike Fassler will discuss some of the distinctions between advisory and fiduciary directors, including:
How families often think about advisory vs. fiduciary boards,
How advisory and fiduciary boards are the same, and how they differ,
The ways that advisory and fiduciary boards function to enhance decision making and business performance in a family enterprise,
Ways to manage expectations around the role of the new board, and
How to find the right talent to serve as advisory or fiduciary directors.
About the Presenters
A consultant of The Family Business Consulting Group, Otis Baskin brings extensive international experience to his focus on management and governance/decision-making issues in family businesses. His primary expertise is in helping business-owning families develop plans for leadership succession, development of next generation leaders, and family/ownership structures and decision processes. He serves on several boards and is the Executive Editor of The Family Business Advisor.
Principal consultant Mike Fassler provides family business planning services with a focus on helping his clients grow their relationships, capabilities and capital. Mike helps families develop and implement plans and decisions for succession, governance and strategy. Most of his work is focused on family businesses owned by sibling teams and cousin teams with an emphasis on helping clients balance the tension of family and business as their families and businesses grow.