How should a family business choose an external advisor?

An advisory board member adds value by being able to offer  independent, expert advice and use their networks and contacts to the family board members.

 An advisory board should be structured by conducting a skills gap analysis on what skills are  missing within the family group.

They should be able add to the knowledge and experience of the owners and managers. 

 In my talks around Victoria for the AICD on Family advisory boards I often stated that advisory board members should not be from the usual professional advisors already engaged. I do not support the use of the families lawyers and accountants. 

I would also shy away from having ex senior management on the panel as this does not assist the new CEO or GM in charge.

Research by KMPG, FBA and BCC clearly indicate that having an advisory board improves the performance of a family business.

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