Shareholders are responsible for the quality of results and should, therefore, decide on investments in continuous improvement initiatives on the board. As advisory boards become more of a rule than an exception, their continuous improvement becomes a key capability for competent family shareholders. Below are seven best practices every family office board should follow for operational excellence:
Re-evaluate board-design
The provision of advisory boards with directive and decision-making powers determines whether they are relatively weak advisory bodies or strong control bodies endowed with robust mandates. Smart boards have emergency mechanisms in place that enable a switch between both types with the associated rights and duties. With the transition between an advisory and a control body, alongside other role requirements, a different temporal perspective comes to the fore. In the control body, short-term survival is the focus.
