TZL 1603 (web)

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JEREMY CLARKE, from page 1

THE REAL RISK: GOVERNANCE COMPLACENCY. Most importantly, independent directors understand their role: to govern, not to manage. Great boards sharpen leadership through clarity, foresight, and alignment – not by rubber-stamping or micromanaging. Internal boards can function, but they rarely evolve. Boards improve not by reinforcing comfort, but by applying structured, thoughtful pressure. This isn’t just a “big firm” problem. Governance gaps are often sharper in smaller or founder-led firms where decision-making is centralized, roles are fuzzy, and informal practices linger long past their expiration date. If your employee-owned firm’s board is just senior managers, it’s time to rethink. If you’re facing a founder transition without board succession, you’re solving half the problem. If you’re courting investors or considering recapitalization and your board looks more like a loyalty circle than a strategic asset, ask yourself how that plays to the outside world. The longer firms rely on insider-only boards, the more blind spots compound. Over time, it breeds strategic fragility – a dangerous mix of overconfidence and underexposure. Even if the firm appears stable, a lack of independent insight will show up in missed opportunities, slow pivots, or value erosion during ownership transition. BUILD THE BOARD YOUR FIRM DESERVES. Even for firms not in transition, the need for sharper governance is real. When strategy is shaped by the same few voices – without structure, documentation, or accountability – the organization becomes fragile. Efficiency turns to opacity. Growth creates complexity, and complexity demands intentional governance. AEC firms are filled with brilliant problem-solvers for clients but often rely on legacy relationships to steer their own futures. That disconnect costs them – strategically, financially, and culturally. True governance isn’t bureaucracy. It’s alignment. It strengthens decision-making, clarifies roles, protects institutional memory, and makes leadership sharper, not slower. The question isn’t whether you have a board – it’s whether you have the right board. A board that asks better questions. A board that sees the firm as it is and as it needs to become. A board that makes leaders sharper, not just more comfortable. If your firm wants to grow, transition, or endure, stop winging governance. Build it with intention and give your leadership the perspective it deserves. As Warren Buffett famously said, “Risk comes from not knowing what the hell you’re doing.” An independent board makes sure your firm never leads from that position. Strong governance isn’t just about filling seats – it’s about ensuring your board has the independence, perspective, and capacity to guide your firm through growth, transition, and complexity. Zweig Group’s Board Search Advisory services help AEC firms build boards that ask sharper questions, see around corners, and elevate leadership outcomes. If your firm is ready to move beyond governance as formality and toward governance as strategy, we can help. Learn more about Zweig Group’s Board Search Advisory services here. Jeremy Clarke is COO and managing director of Talent consulting at Zweig Group. Contact him at jclarke@zweiggroup.com.

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THE ZWEIG LETTER SEPTEMBER 29, 2025, ISSUE 1603

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