Rewiring the Boardroom – Strengthening Board Effectiveness in a Family-Owned Business
The Problem
A successful second-generation family-owned business was experiencing quiet dysfunction in the boardroom. While the business itself was stable, tensions had grown between the board and the newly appointed CEO (a family member from the next generation). Board meetings were routine but lacked strategic depth. Directors were unclear on their role—some veered into management detail, while others disengaged. Critical decisions were delayed, and the CEO felt unsupported and second-guessed, resulting in growing frustration across leadership layers.
Why It Mattered
In family businesses, ineffective boards don't just create governance issues—they create emotional strain, blurred boundaries, and succession risk. Without clarity around roles and responsibilities, the board can become either a rubber stamp or an obstacle. In this case, misalignment was threatening both the CEO's authority and the broader transition of leadership across generations—potentially destabilising the long-term legacy of the business.
What We Did
We conducted a full board effectiveness review, including confidential interviews with directors, the CEO, and key executives. We analysed meeting agendas, pre-read materials, and decision rhythms. The first step was a facilitated board offsite to re-establish trust and clarify expectations. We introduced a new governance model, distinguishing between operational reporting and strategic dialogue. Meeting formats were overhauled to focus on strategic questions, succession planning, and enterprise risk. Finally, we supported the Chair in developing better director engagement practices and onboarding for new board members.
The Results
Within six months, the board dynamic shifted significantly. Meeting time spent on operational updates dropped by 50%, replaced by structured strategic dialogue. Directors reported a clearer sense of purpose, and the CEO noted a 'step change in the quality of conversations.' The Chair felt more confident managing boardroom dynamics, and the family ownership group saw renewed trust in the leadership transition. The business entered its next growth phase with stronger governance and a more unified leadership voice.
If you're looking to strengthen your board's effectiveness or navigate leadership transitions in your family business, we'd be happy to discuss our approach.