Absolutely! There are many large organizations that have successfully implemented Advisory Boards. Having said that, there are clearly more considerations when developing a corporatized Advisory Board structure. Fundamentally, the purpose of a corporatized Advisory Board is to support the Governance Board, the Management, or both.
Considerations include developing a clear Advisory Board Charter, reporting relationships and engagement rules with stakeholders and disclosures, amongst others. In a corporate environment, not unlike the requirements of Independent Directors on a Governance Board, Advisors must be independent.
Some of the leading Advisory Boards globally include:
- Conde Nast: The Global Advisory Board comprises of thought leaders and tastemakers from diverse backgrounds, ranging from inclusivity advocates to conservation pioneers.
- Singapore Economic Development Board: EDB’s International Advisory Council comprises 16 members who head globally leading business organizations across a variety of sectors and geographical regions.
- Takeda: The Takeda Ethics Advisory Council is comprised of a diverse group of professionals that include prominent external ethics experts and selected Takeda leaders; informing Takeda’s development of robust and principled positions and guidance on ethics issues.
Advisors in corporatized environments are usually composed of experts, thought leaders, and seasoned executives from various industries. As a strategic asset for the organization, Advisory Boards:
- Provide Strategic Insights: Advisory boards help organizations refine their long-term strategies by offering diverse viewpoints and identifying emerging trends.
- Enhance Innovation: By including members with cutting-edge expertise, advisory boards encourage forward-thinking and innovation.
- Bridge Knowledge Gaps: These boards bring external knowledge and industry-specific insights that might not be available internally.
- Support Global Expansion: For corporations entering new markets, advisory boards with local experts provide guidance on cultural and regulatory challenges.
- Mitigate Risks: Advisory boards help identify potential pitfalls and recommend solutions to mitigate risks in critical areas such as sustainability, compliance, and digital transformation.
By leveraging external expertise, Advisory Boards help companies remain agile, innovative and competitive.
