Advisory boards could be a significant competitive advantage for a company, but too often they fail to realize their potential. The typical life cycle of many advisory boards follows a familiar pattern:
- Initial emotions surrounding the creation of the board.
- Initial meetings discussing potential opportunities to help the company.
- Scheduling issues leading to lack of momentum and interest.
- Disappointment from senior management in the value of the board.
This common scenario begs the query: What can business leaders do to effectively create a helpful, long-term advisory board?
Why have an advisory board
Advisory boards fill critical knowledge gaps in organizations by providing category expertise, leads, networking opportunities and insight into blind spots.
While management has legal obligations, advisory boards offer additional value that may assist you to outperform your competitors in the long term.
Who should serve on the advisory board
Selecting the right members is crucial. Candidates must exhibit credibility, industry knowledge and the ability to present helpful offers to goal customers. Chemistry with the CEO is also essential for effective collaboration.
Advisory board member remuneration
Compensation varies but often includes equity incentives, performance bonuses, and non-financial rewards similar to invitations to events. Clear agreements should be reached and reviewed periodically to ensure compliance and mutual profit.
Launch of a recent advisory board
At the kick-off meeting, explain the board’s role, responsibilities and expectations. Provide essential information about the company, competitors and industry trends.
Encourage collaboration among advisory board members and senior management and, most significantly, establish a meeting schedule for the coming yr to ensure continued engagement and progress.
Ensuring advisors have a positive impact
Active involvement is key. Regular meetings with senior company management allow you to obtain helpful insights and feedback.
Stay up to date with industry trends and provide company updates to advisory board members. Periodically evaluate management’s input to ensure alignment with company goals.
Advisory boards offer a cost-effective way to gain helpful insights and maintain a competitive advantage. By rigorously choosing members, setting clear expectations, and fostering energetic engagement, corporations can leverage advisory boards to accelerate growth and success.