Selecting board members
There are many routes by which a director can reach the boardroom of a family enterprise, some more conventional than others. However, a very important part of the recruitment process, or the selection of a consultant to help with it, is ensuring that there is a clear understanding of best practice in the governance of family enterprises, as distinct from other types of businesses or organisations. Failure to do this results in other governance models being imported into the family enterprise, for example from the conventional world of corporate governance, that do not always represent a good fit and which can lead to misunderstandings, anxiety or open conflict.
The following questions can be adapted for interviewing a board candidate or recruitment consultant. FBS has participated in these interviews to provide a neutral view on whether or not the candidate “gets it”.
- What is their experience of working with family enterprises?
- What is their experience of working with multi-generational family controlled enterprises?
- By way of example, what type of non-financial KPIs could be included for the director of a family business?
- What are some of the advantages and disadvantages of a family owned business compared to other businesses?
- Why would you recommend working for a family enterprise?
- In what areas would you expect the governance of a family enterprise to differ from other types of business?
- Will they be a safe custodian of our values and our wealth?
- Will we get on with them? How adaptable are they to our ways?
- Will they seek independence from the family?
- Will they be approachable?
- Are they comfortable communicating with family members?
- Will they stand up to the different interests in our family and act with uncompromising independence when that’s needed in a way that balances the best interests of everyone with a stake in our enterprise?
