4suxxess offers competent and independent advisors as board members, when there is a need for strategic decision making, challenging entrepreneurial situations, such as setting up a new business unit or when there are changes in the management team. This is particularly relevant for family owned companies, SMEs or startups, when they find themselves overwhelmed due to complex or unfamiliar challenges.
In our experience, we’ve found more than 50% of all family-owned companies have installed some sort of boardroom control. The boardroom control / supervisory board can focus on consulting, but it can also control the management or include the authority to make important decisions.
The board of directors can play an important balancing role, e.g. as a facilitator to mitigate conflicts which arise between generations in family-owned companies or even with the employed managing director.
We are very familiar with the relationships of many board environments. Legally, the board of directors have a control function. While in practical terms, the German “Beirat” is also legal, but has a consulting and nonobligatory boardroom control function. Therefore an important issue is to have the necessary know-how as well as the right attitude; to be a sparring partner for the operational management: overlooking the whole picture, asking questions which point to risks and opportunities. Help people help themselves – this saves money in the end!
“It´s the people who make the business run”
Or the key question is: what is typical for a good boardroom control?
It’s important to install the right people for boardroom control. Key ingredients for successful selection include:
• Entrepreneurial spirit
• Client’s interests first
• Ability to focus on the requirements of the company
• Professional background
• Exemption of organizational blindness
• Awareness of (gender) diversity
It is essential to consider diversity of experience, education, gender etc., for the composition of the boardroom control members.
Since the members of the board of directors are not involved in daily operational business, they need a bird´s eye view that allows them to freely assess the situation.
A common mistake is to select friends and family members who then become a risk due to their inability to act independently. A better choice is choose independent, highly qualified people with entrepreneurial experience, temporary availability and strong analytical /conceptual abilities.
An additional important aspect is that the know-how is always updated; 4suxxess managers have successfully completed special boardroom control training / seminars, e.g. with PWC.
Managers on demand can be the perfect decision!