You may have noticed that it seems like the words advisory + board are buzzing in every nook and cranny of your business network – and you are not mistaken.
Research indicates that Advisory Boards are in fact a global trend and becoming a key part of advisory strategy for future ready businesses in the hundreds of thousands. While previously we may have seen a more informal advisory board structure (read: a few mates and mates of mates who come together to chew the fat of business), the more formalised advisory board is accelerating as the preferred option.
Why all the buzz about advisory boards?
- Advisory boards are less red tape.
- Businesses can reap the rewards of the advice, insights, strategies, and networks of independent advisors without losing decision making power or agency over implementation.
- Advisory boards are agile, which means they can evolve with you (and the times). You can create advisory boards with unique features aligned to your organisation. For example, an advisory board for your business, or one for key projects and initiatives (like international expansion, organisation transformation, restructure).
- Having a fresh set of eyes on your plans, operations, risks, and opportunities will strengthen your competitive advantage, ability to innovate and strategically grow.
- It’s a value add for customers – they will see that you are committed to best practice, ahead of the trends, innovative and future ready.
Neat, right? We agree!
Now, while less red tape is very appealing, as with most things, getting the foundations right from the beginning determines success from failure. So, before you throw red tape out the window entirely and launch into an advisory board like you’re building a parachute on the way down from jumping out of a plane (with egg on your face), there are some important components that will separate the advisory duds from the diamonds.
This includes:
- Ensuring your strategic plans and objectives are up to date.
- Having adequate legal rigor including proper advice about forming an advisory board and legally compliant documentation.
- Ensuring clarity of roles and responsibilities.
- Choosing the perfect suite of diverse and inclusive advisors who challenge the status quo and take your business or project to the next level.
- Setting aside budget for formation, and remunerating advisors (remuneration is not compulsory, but highly recommended to ensure you are attracting high calibre advisors who will uplevel your business or project).
Legalite can assist you with advisory board formation and advisors through our LegaliteAB service. If you have further questions or need help with your advisory board planning and formation, let’s chat!