President’s Message – Latest Scoop 2024 Issue 3

The value of independent directors

Family-owned businesses are not often thought of as welcoming accountability. I remember my dad saying he could hold a management meeting, board meeting, and make an owner’s decision with ‘me, myself, and I’ by the time he left the house in the morning! There is a simplicity and efficiency in this model that is often utilized by founders/owners, but by the time future generations and non-family managers join the business, this model doesn’t work anymore. Outside voices become necessary for accountability and ensuring the future success of the business. Even for entrepreneurs and sole owners, there are a wide range of advisors, mentors, and peer groups available today.

Thanks to the advice and urging of the Delaware Valley Family Business Center after Brubacher’s ownership transition nearly 20 years ago, Brubacher has experienced the benefit of several independent directors (experienced businesspersons who are not employed by or do business with the company) serving on our board of directors alongside family owners.

The value of outside directors is wide-ranging, including:

• An unbiased viewpoint on the current state and future direction of the company
• Insights on business trends, challenges, opportunities, and best practices
• Setting the strategic direction of the company
• Conducting an annual performance evaluation for the president and ensuring accountability
• Helping navigate differences or friction within the family ownership
• A sounding board for the president and executives
• Subject-specific depth (e.g. culture, finance, sales, technology, etc.)
• Planning for succession and crisis matters

One of the important aspects of an effective board is to recruit new directors to succeed those who have completed their terms of service. Brubacher’s Board of Directors was recently engaged in this vital task as director Chuck Grier is retiring from his role. We are grateful for the many years of insights and counsel Chuck shared with us. This fall, we are pleased to welcome Randy Blount as the incoming director on our board. Randy is the former owner of Blount Contracting in Phoenix, AZ, a shareholder at the company that bought Blount, and current CFO at BuildWitt. Randy joins Scott Heintzelman, Larry Winkleman, Ben Brubacher, Keith Brubacher, and Myron Brubacher currently serving on the Brubacher Board of Directors. We are thankful for all the directors we have had the opportunity to partner with over the years in our journey towards accountability and supporting the company’s future.

Whether you lead an organization, a family, a community group, or your own life, the question I ask is this: “From whom do I invite accountability to help me grow, challenge my thinking, and achieve goals?” You may not have or need a board of directors, but I believe we can all grow faster and go further by creating a system of accountability in our lives.

In my observation of others, there are three basic approaches to accountability that I see.  In fact, I believe I’ve been all three types at some stage of my life.

• Avoid/Run away from relationships and structures that provide accountability
• Accept or tolerate accountability
• Seek, establish, and welcome relationships and structures that provide accountability

I’m curious…in which category are you right now? Does your response vary depending upon what area of your life you think about? Where do you want or need to be? If that’s different from where you’re at today, what steps will you take to move forward?