As we ramp up for The Private Company Governance Summit 2026, which will take place June 10-12 in Washington, D.C., we are speaking to our panelists to get a bit of insight on the topics they will be discussing at the event. Today, we speak with Annarie Lyles, Ph.D., third-generation owner and board vice chair of Lyles Diversified Inc., about the subject matter of “How Private Company Boards Turn Risk Into Opportunity,” the session she will be participating in at PCGS 2026.
Private Company Director: How can a board know that they have the right people and processes in place to turn volatility into strategic advantage, not simply react to it? And what is the first step to making sure they have those people?
Lyles: Turning volatility into strategic advantage requires more than reactive crisis management. It demands a company culture built on trust, diverse perspectives and proactive engagement. The foundation lies in ensuring that employees, owners and stakeholders believe leadership is genuinely committed to their long-term well-being, not just near-term results.
A critical risk in closely held private businesses is the perception gap: Employees may doubt owners’ commitment to them, while owners — particularly in family enterprises — may question whether independent directors truly prioritize their interests. This mutual uncertainty erodes the very trust needed to navigate turbulent times. Without it, talent retention suffers, early warning signs go undetected and strategic opportunities slip away.
A first step to having the right people in place is intentional relationship-building between the board and stakeholders. This means creating structured opportunities for directors to interact with employees beyond formal boardroom presentations — through site visits, informal meals and company events. I have personally devoted weeks to touring multiple divisions, meeting people where they work and understanding their challenges firsthand. This isn’t performative or “one and done.” It’s essential trust development that allows systemic issues to become visible before they become crises.
When volatility strikes, boards equipped with these relationships can probe for underlying strategic issues rather than accepting surface-level explanations. They can tap into diverse talent pools for innovative solutions because trust has already been established. Directors become assets when they master the delicate balance of listening deeply to stakeholder voices while respecting the boundary between board oversight and day-to-day operations.
Trust isn’t built overnight. It requires consistent, visible commitment over time. But this investment pays dividends when uncertainty arrives. Boards that have cultivated genuine relationships across the organization can transform volatility from a threat into a competitive advantage because they’ve already assembled the people and processes to see around corners together.
To hear more from Annarie Lyles, Ph.D., register today for The Private Company Governance Summit 2026.