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.
During this one-hour program, 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.
Suggested Articles and Worksheet
- Governance Beats Avoidance for Long-Term Family Business Harmony
- Filling a Board Vacancy: Using Gap Analysis to Capture Opportunities
- Transitioning the Board for a New Generation
- Evolving Your Family Business Board
- Worksheet: Decision Input Table
- A planning guide for transforming your company’s board of directors
- Selecting Board Members: Guidelines for an Effective Nominating Process
You can also access hundreds of in-depth articles written by our team that address the unique challenges faced by family enterprises from communication and conflict to succession and continuity. Visit our Article Library.
- Family Business Governance
- Building a Successful Family Business Board
- How to Choose and Use Advisors
- Leading a Family Business: Best Practices for Long-Term Stewardship
- Family Business Ownership
- Keeping the Family Business Healthy
What’s the Next Step for Your Board?
We can help. Appropriate and effective governance is the hallmark of a truly sustainable family enterprise. For over 25 years, The Family Business Consulting Group has helped clients develop engaged and focused boards that contribute to strong strategic planning and productive family working relationships. Our consultants can guide your family through the process of evaluating your needs, planning changes to the governance structure, and ensuring that the board you build provides the value you seek.