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14 FEDA News & Views makes people frightened by it." There's that and the fact that many simply do not see the value, says con- sultant Amy Schuman of the Family Business Consulting Group, Inc. (FBCG). "Most private companies don't seek accountability or outside influence. They know what they want to do, they know their business better than anyone else and turning to anyone outside of their circle seems like a waste of time," she says. "But someone who is looking for new information, a fresh perspective and proven expertise, that's the kind of person that would really enjoy the support and challenge that comes along with having a board." The Benefits Ellingson, a third-generation convert, falls into that category, having benefited from a nudge or two from his circle of advisors. They were the ones who encouraged him to invest more time in his personal development after replac- ing his father, Paul, as president. "That is probably one of the most meaningful pieces of advice I've gotten from them," he says. "I always felt I was too busy and the board changed my mind on that. Most of our discussions were geared on what we were doing to develop employ- ees and then they asked me what I was doing to develop myself. I didn't have an answer. They said, 'Come back in six months with an answer. If you're not doing anything to develop yourself, you won't grow and the company won't grow either.' So that's been my focus." As the president of the company, he typically reports to the board so he's also the pri- mary recipient of its counsel, along with cousin Eric Ellingson, the company's vice president of Operations. "That forc- es me to stop. Organize my strategy and present it twice a year," says the head of Bargreen-Ellingson. "It's great to get feedback from people who are not in the business to make sure the compass is in the right direction. Their questions lead to other questions and, at times, push you to rethink your strategy and retool it a bit." Planning the Meeting Bargreen-Ellingson's board meets at least twice a year, or roughly every six months, in a strategically-determined location, strategic as in taking into account that the three volunteers in the group live in different states. There's also an effort to choose a venue that's more perk-worthy than the modest honorari- um advisors receive, like the occasional two-day meeting in Hawaii, where one of the distributor's branches is located. "We rarely meet for more than two days and it's never for less than a day," says Ellingson. "We try to hold it in nice plac- B argreen-Ellingson's advisory board is comprised of a group of seven— the four family members who run the company, and three outsiders with expertise in areas that the Tacoma-based distributor deems critical to its longev- ity. One, a longtime friend of CEO Paul Ellingson, is a retired Dreyer's Ice Cream executive with a long-standing history in operations and distribution. Board member No. 6 ran a billion-dollar family business, the kind of business Bargreen- Ellingson aspires to be, and his chops are in business and finance. There's also an E&S veteran in the group with more than 30 years in the trenches and sturdy ties in both manufacturing and distribution. Eventually there are plans to add an eighth, says President David Ellingson, someone with an up-to-date knowledge base in distribution systems and technol- ogy. "That's the gap we've been trying to fill but it's been a challenge," he says. "IT is moving so fast that many seasoned veterans are a little behind on their tech, at least the ones that we have access to." His advice to anyone considering assembling a board? Two nuggets. Don't be intimated by the process and formal- ity is an option—not a requirement. "Our company had one outside director for 10 years because that's all we felt we needed," says Ellingson, who is among the four family members currently serv- ing on the board. "Since then, it's grown and evolved but very slowly. You can make it what you want it to be and if it doesn't work, you don't have to keep doing it. There doesn't have to be a ton of formality around it. That's what I think Dealer's Notebook Bargreen-Ellingson's David Ellingson On Building an Advisory Board and Why It's Worth the Investment By Stacy Ward, Managing Editor fedastacy@verizon.net typically reports to On Building an Advisory "It's great to get feedback from people who are not in the business to make sure the compass is in the right direction. Their questions lead to other questions and, at times, push you to rethink your strategy and retool it a bit." -David Ellingson continued on page 18