Does my small business really need a Board?
Last week I wrote about establishing a governance framework in a family business. If you missed it, look here.
Just to refresh ourselves, the difference between governance and management is that governance is about strategic direction, overall policies, establishing a vision and mission, whereas management is about caring for the operations of the business, the “how’s” of running the business to meet strategic direction and policy.
The decisions correctly made in governance are about the really big things in the business that will affect the long term future of the business.
Appropriately these governance decisions are made by a Board of Directors while the CEO and other managers look after operational management.
In a small business, whether a single owner-manager business, or one with a number of family or unrelated partners, both governance and management decisions are often made by the same people wearing different hats, and more often than not, the decisions are made smoothly and efficiently.
So, why would you need to put a Board in place?
I believe a number of issues make the establishment of a good Board beneficial to your business, at the right time. Read More
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