Advisory boards: what they are and how they operate
Advisory boards sit alongside governing boards and the management to provide insights that benefit both groups.
Advisory board toolkit
Support and guidance from an advisory board may accelerate growth, improve financial performance, manage risk or enhance operational performance.
The toolkit covers the four phases of an advisory board’s life cycle:
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Consider
An advisory board is a committee of people selected by a business (or a board in the case of larger companies) to provide defined advice and information in an informal and flexible manner.
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Establish
Structural similarities may exist between a board of directors and an advisory board. They should both have a chair to facilitate and lead, as well as procedures for the conduct of meetings.
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Operate
Advisory board members must not be unwittingly exposed to liability as full directors. As the business owner, or business’s representative you must have absolute discretion to accept or disregard any recommendations made by your advisory board.
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Exit
At some point in the life cycle of your advisory board you may encounter the need to exit from or alter the arrangements.
Further reading
Excerpt from The Four Pillars of Governance Best Practice on advisory boards (Institute of Directors, 2014)
The role and value of an effective advisory board (Ivey Business Journal, 2003)
Don’t go it alone: Create an advisory board (Comaford, 2007)
Case studies
Representing NZ with chocolate (DominionPost 4 June, 2012).
Websites
Find out if an advisory board is right for you.
Acknowledgements
The Institute of Directors acknowledges the following thought contributors in the development of this toolkit:
Tracy Brown – Tregaskis Brown, Peter Crow – Independent Director, Rod Drury – Xero, Estefania Gallinanes-Garcia – Productspec.net, Alan Hucks – Creative HQ, John Lumsden – Growlypaw Limited, Steve O’Connor – Creative HQ, Andre Post – Splice Group, Tom Reidy – Catalyst90, Aaron Rink – CF Reese Plumbing, Richard Westlake – Westlake Consulting.
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