Board of Directors: Underutilized Asset?
A study by Deloitte Growth Enterprise Services found that many family businesses (28%)–even larger ones–fail to take advantage of the benefits of a board of directors. Even those family businesses with boards don’t properly utilize them, since many often meet infrequently–fewer than one board meeting a year. How much governance can actually be taking place in such a situation?
Deloitte found that the most effective boards were comprised primarily of independent directors, yet only 39% are in this category. Benefits provided by an effective board include:
- Making sure business issues are not personalized
- Aid in succession planning
- Help getting senior management to be strategically focused
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