Family business accountability

Accountability in the family business can be heightened by associating with outside advisors. Develop a competent group, including an attorney, accountant, and/or CEO peers in non-competing industries, who can provide balance for a family business.

These advisors, meeting periodically during the year, can provide dispassionate counsel. Such a group of hand-picked, trusted consultants is especially important in a family firm, because they can keep the CEO honest about family compensation. They also serve to counterbalance the emotional power of the family when tough business decisions must be made.

Sometimes the CEO can benefit from joining a group of peers from outside the family. Several national and international organizations suit this purpose, as well as the local chamber of commerce. Look for business roundtables, where advice and education about solid business practices is shared confidentially.