There is a story about a Father and Son business team who developed a new product sure to bring big sales and even bigger profits.
Both the father and son were very excited about the prospects of their business opportunities.
Together, as they surveyed their newly found field of promising customers, the son said to his father, “Dad, lets quickly get to market and win a few deals!” The father, with years of experience and wisdom, quietly and patiently replied to his son, “I love your enthusiasm son, but let’s take some time to make a sales plan and then strategically move to market and win all of the deals!”
The first natural question, then, is who is right—the father or the son?
In a family business setting, this story often becomes metaphorical for many similar types of opportunities and/or issues.
From the father’s perspective, his son has enthusiasm and energy but lacks experience.
From the son’s perspective, the father has experience and wisdom but lacks energy.
This is, obviously, oversimplified. Both perspectives have merit and value. The issue lies in how father and son communicate their positions and work together to use both of their strengths simultaneously.
To no one’s surprise, while this is easy to review on paper or case study form, the reality of father-son business teams is that these types of scenarios are at play constantly. There are hundreds of factors that separate father from son in ability, experience, energy, perspective, capacity, motivation, risk tolerance, goals, vision, strategy, management style, communications styles, technology, priorities, values, etc., etc.
When the stakes are low, these types of issues can be hurdled quite easily but when the stakes get higher—emotions run high and father-son relationships can take a beating at the expense of business transactions.
What is really needed, getting back to the story at hand, is a tool to take advantage of both the father’s experience and the son’s energy.
Link?
What is that tool? The answer is surprisingly simple. Family Businesses need to utilize an Outside Board of Directors, or an Advisory Board, to help them chart a course that uses both the father’s and son’s ideas and strengths.
Outsiders have the ability to see things more clearly because they not blinded by emotions or the curse of knowledge (which means they can see things afresh).
Not only is their vision better, but a trusted group of board members adds emotional intelligence which helps dampen strong emotions and strengthen rational thinking.
Even more, board members bring ‘been-there-done-that’ experience which is invaluable.
This is just the beginning of the benefits an Outside Board can help bring to a family business.
The difference between winning an losing can often be a very thin line—small variables can become a major factor.
An Outside Board may be something that can be overlooked. You have, after all, survived many years without one but at what opportunities missed. That question might be impossible to answer but certainly, going forward, it is worth the attempt to try something a little different to move from survival to prosperity!