If you already have a formally appointed board of directors and they are overwhelmed with the workload or simply too operational, have you thought of improving your company performance by utilising an advisory board?
Unlike a formal board of directors whose job it is to set strategy and manage resources and for whom the role carries substantial liabilities and responsibilities, the advisory board has no such remit.
The role of this board is to advise, as opposed to direct and ideally on specific issues put to this group, for example:
- How can we increase our market share in a certain location?
- How can we motivate key staff?
- What is the market potential in X for our products?
These issues, can of course, be dealt with by the formal board, but it's likely they haven't the time to do these specifics justice.
The advisory board will, by and large, meet less regularly than the formal board, perhaps quarterly. Their number may be greater than the main board, though it's advisable not to go beyond ten members. They are unlikely to want payment, although reimbursement of expenses is only reasonable.
Assembling a group of various experts and then playing to their skills to enhance your business performance can only be positive if done correctly.
If you want to find out how to do this with confidence check out our guide here.