Have a clear agenda. Make sure you’re focused on what will be covered in the meeting as well as the pertinent information, such as location and time, length of meeting, and topics to be discussed. The key to getting the most out of the leaders on the board is similar to that of any corporate meeting. Running advisory board meetings takes many cues from best practices for the larger board of directors. A good rule of thumb: An advisory board should number about half the members of your corporate board. The more intimate your advisory board, the better you’ll be able to leverage their expertise and skills - they won’t need to fight to be heard, and the board will have greater flexibility. Advisers are chosen for their expertise, and they need to feel comfortable offering that expertise.
Offering only the advice leadership might want to hear means potentially ignoring best practices and facts on the ground, which will only work against a company. You need advisers who aren’t afraid to cast doubt and to contradict leadership. The Environmental Protection Agency (EPA) has an SAB that was established in 1978 and that provides scientific advice to the EPA. For example, a Science Advisory Board (SAB) might include advisers from scientific organizations, both private and public. What specific experience should advisers have in order for your organization to gain insight? Some advisory board members may have perspective on a particular topic. Focus on the expertise the advisory board should have.Selecting an advisory board is quite similar to selecting a board of directors, but with a few variations.īest practices for creating a top-level advisory board include: Creating a stellar advisory boardĪn advisory board ideally offers support beyond the expertise and knowledge board members and company executives can offer. However, as the Non-Profit Law Blog suggests, careful consideration should be paid as to when the chairman should attend executive sessions, and whether that participation helps the board of directors, or has the potential to trigger problems or conflicts. The advisory board chairman may also sit on the board of directors. Mitigating any conflicts that might occur during the meetings.Monitoring discussions during the meetings.
The major duties of an advisory chairman, according to the Houston Chronicle, include: The advisory board chairman is responsible for running the board meeting as well as appointing subcommittees, if necessary. Role of an advisory board chairmanĪn advisory board chairman serves as the point of contact between the board of directors and the advisory committee. A CEO, for example, may feel more comfortable expressing a tentative or partly formed view before an advisory group whose purpose is to provide advice and feedback. However, despite the formalization of advice, advisory boards tend to be less formal, and to go with the flow of executives’ needs. Advisory board members typically receive lower compensation than their board of director counterparts.Īdvisory boards also often “provide safe harbours for executives who may be able to test-drive options” before taking them to the board of directors, according to Ivey Business Journal.
They are there to provide advice and expert knowledge. Unlike a board of directors, an advisory board does not serve a management function, nor do its members represent shareholders. Advisory board members are often selected for their particular areas of expertise. The role of the advisory board is to have experts to share their insights and to fill knowledge gaps among corporate leadership. While an advisory board may provide strategic advice to an organization’s management, it is vital to also strategically approach the planning and running of an advisory board meeting. Simply defined, an advisory board is a committee that provides non-binding strategic advice to the management of a corporation, organization or foundation. Advisory boards offer a way to tap into diverse and expert advice for your organization, but unlike the board of directors, an advisory board doesn’t have the authority to vote on corporate matters or to bear legal fiduciary responsibility.