One is an advisory board, the other a fiduciary board.

One dates back to the 1980s; the other was formed eight years ago.

But for both Muth Cos. and Steffes Group, utilizing a board of directors has proven invaluable in evolving their family businesses.

Both will share their stories and best practices at an upcoming Prairie Family Business Association webinar: Building a Strong Foundation: The Importance of a Board for Family Businesses.

Held March 5 at 10 a.m., the webinar will detail why a board — advisory or fiduciary — is a vital asset for the success and sustainability of your family business. In this webinar, designed specifically for family business owners, you’ll learn:

• The distinct roles of owners, the board and management.
• How a board can drive growth, provide guidance and ensure accountability.
• Practical insights into leveraging a board to secure your business’ legacy.

“Our members come to us at every stage of working with a board, from being unaware of the benefits to considering forming one, going through the process and working with an established board,” said Stephanie Larscheid, executive director of the Prairie Family Business Association.

“Our panelists have so much knowledge and experience to share that no matter how your family business utilizes a board, you’ll take away some fresh ideas from this conversation.”

For Steffes Group, an original equipment manufacturer specializing in steel fabrication and electrical services, working with a board dates back to the 1980s, when co-founder and second-generation leader Paul Steffes formed an advisory board.

It evolved into a fiduciary board, and Steffes still sits on it in addition to six outside members.

The third generation sits in on all meetings, which are about a day and a half four times a year.

“The board sits in the middle, and the owners sit on one side and the management on the other,” said Suzi Sobolik, a third-generation owner.

“It’s not because we don’t get along but because we want all direction to go through the board. We funnel everything through the board. We hired board members we have the utmost respect for. They’ve headed up businesses, and they sift through everything and approve both the owners’ and management’s dealings.”

At Muth Cos., which encompasses Muth Electric, Muth Properties and Thermo Bond, the board includes six independent advisory board members. First-generation founders Dick and Darlene Muth and their four children are included in all meetings.

The board formed in 2017, and “I really think it was our exposure to the Prairie Family Business Association, going to seminars, going to the annual conference, getting ourselves educated and realizing we need some outside influence who could sit in the room and see blind spots we couldn’t see,” said David Muth, president and CEO of Muth Electric.

“Now, we sit down six days a year and really do a deep dive into the current state of the business and what the future looks like. We get alignment on where we want to be, what’s the why, and our board helps us shape our company and decision-making toward the why.”

Muth Cos. utilizes facilitator Sandra McNeely, while Steffes Group’s longtime board chair facilitates its work.

Both companies say there are multiple benefits to working with their boards.

“They help with our strategic planning, they help with internal growth and development, and they share practices they’ve seen throughout their careers with our management,” Sobolik said.

“We lean on our board a lot for accountability. As owners, they help hold our own feet to the fire, as well as for management.”

At Muth Cos., the board has “been very beneficial in succession planning,” Muth said. “We just finished a four-year plan as our CEO retired and I stepped in as president and CEO, and they were super-critical in identifying the steps I needed to take, the path forward, how to communicate to our employees and the things that made it a more formalized process.”

At the webinar, both companies also will address how they source board members, onboard them and compensate them.

“I can’t think of a downside as to why you wouldn’t have a board,” Muth said. “There’s just a whole lot of upside. You get a unique set of people in the room who are each looking under the hood of your company. They bring their own vision and experience to you in a healthy way, share great advice, and then it’s your job to take that advice and turn it into action.”

To learn more and register for the webinar, click here.