Interview with Charles Ribakoff 

CEO, Automotive Management Inc. 

In each issue, we interview a President/Owner of a small or medium sized business to talk about their perspectives and their company’s direction. Each issue will feature a sampling of some key questions every business owner must consider.  This month we spoke with Charles Ribakoff of Automotive Management Inc., which owns and operates 12 companies in central New England, including Harr Ford, Harr Dodge and Harr Toyota in Worcester, and MHQ Municipal Vehicles in Marlborough.  MHQ is the largest distributor of police and public safety vehicles in the United States.  56 years old, Automotive Management was ranked third among high growth companies in central New England by Worcester Business Magazine in 2003.

1.  What were your primary objectives for adding an advisory board to your business?

To broaden the scope of advice that I could get about my business.  I bought my dad out of the family business.  We are a fiercely private family and didn’t discuss our business with anyone outside of the family.

2.  What were your concerns while you were considering using an advisory board?

Because we are so fiercely private, it was a risk for me to talk about the business with anyone.  However, last December we started working with the advisors – and the sky hasn’t fallen!

3.  How were those concerns addressed as you began to work with the advisory board?

The process got easier as we went along and got to know people better.  I could see that the more good information I give to the advisory board, the more good information I get back from them.  I see this has been an educational process for me. 

The board is a terrific group of people – and we’ve been getting to know each other both professionally and socially.

4.  What were your expectations as you began to work with the advisory board? 

That I would learn things about the business I didn’t know before.  The very first meeting, going over our strengths and weaknesses, preparing for the meeting was an experience in itself.  I realized what some of our issues were as I heard myself presenting them out loud to the Advisory Board.  The act of preparing for these board meetings has been very helpful, and beneficial.

5.  What have been the outcomes of your work with an advisory board?

I replaced most of the operating management of the company.  We took a look at the accountability of the management team.  The advisory board asked some good questions and made some good points.  “These are your dad’s guys.  Are they who you need to take you to the next level?  Are you going to, do you need to, change that?”  And they were right – these were my dad’s guys.  I needed to make some changes.

6.  What have been the top 2 or 3 benefits that working with an advisory board has provided you personally as the President/CEO and/or Owner of the business?

·        Validated some of the things I thought I was doing right.

·        Suggested things that I wouldn’t have thought of.

·        Provided expertise in fields that I didn’t have expertise in, like banking, planning, resources that I didn’t have access to. 

7.  What have been the top 2 or 3 benefits that the company has realized as a result of the advisory board input?

·        The company has done substantially better in a difficult market. 

·        We’ve made necessary changes. 

·        We’ve explored some different growth possibilities. 

The act of prepping for a meeting makes me organize my thoughts.  It crystallizes what you’ve been doing.

8.  If a peer of yours were considering creating an advisory board for their company and asked you for your advice and council, what would you tell them?

Tell them to do it.  Call Jeffrey.  You need someone to put things to you objectively.  Do it, and have them serve up the right people.  If you hire your friends, you might not get the truth.  You need objectivity.  You need to expand your reach.

9.  What do you know now, after working with your Advisory Board, which you didn’t realize before?

It has been positive, constructive, and instrumental.  I’d hoped it would be so.

10.  If you had to sum up what the experience has been for you in working with your advisory board – how would you describe it?

I’ve pretty much answered that in earlier questions.  Just another thing – I found out about this by seeing a little ad in the Boston Business Journal.  I never would have thought to call them or known they did this kind of work.  Jeffrey, Moses and I all were classmates!  We’ve known each other for years.

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