In the family business I analyzed, the board plays a crucial but slightly limited role in driving performance. While there are non-family board members who bring professional insights, real decision-making still lies with the family. This can protect legacy and values, but it also creates a bottleneck when it comes to innovation and agility. I’ve noticed that without a clear structure for how the board evaluates and contributes to performance, the business risks missing growth opportunities. A more balanced approach between family leadership and external expertise could improve strategic clarity and accountability. According to Corbetta and Salvato (2004), boards in family firms often underperform when they’re symbolic rather than functional. I think strengthening the board’s role, not just as advisors but as active governance participants could really boost long-term performance while keeping the family identity intact.
Reference:
Corbetta, G. and Salvato, C. (2004) ‘The Board of Directors in Family Firms: One Size Fits All?’, Family Business Review, 17(2), pp. 119–134.