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