Advisory board members are chosen for their expertise in specific areas. In contrast, governance board directors are elected by shareholders and have fiduciary duties. This crucial distinction ensures that advisory boards remain focused on providing strategic insights, offering non-binding guidance, while governance boards have legal responsibilities. Governance boards oversee the organization’s long-term objectives and compliance with laws. They make decisions that directly impact corporate governance and operations Balancing both boards can enhance decision-making and organizational stability.
What to consider in forming an Advisory Board?
Think of the Advisory Board as a problem-solving model and a thinking system. Advisory boards often comprise a diverse mix of experts who bring varied industry insights and valuable experience, who are selected for their specific experience.
All Advisors Collective advisors are Certified ChairsTM by the Advisory Board Centre. This means they follow Advisory Board Best Practice Principles, which is a principles-led, non-prescriptive approach to gaining the most value and managing the ethical boundaries on how the Advisory Board operates.
These principles include:
- Clarity of Scope: The Advisory Board has a clearly articulated approach, outlining purpose, roles & responsibilities, process, timing and boundaries.
- Structure & Discipline: The Advisory Board structure is clearly outlined with protocols to establish, manage and review effectiveness.
- Measurement: The Advisory Board is measured on an ongoing basis for impact and organizational alignment
- Independence: The Advisory Board has independent, diverse representation.
- Fit for Purpose: The Advisory Board members are profiled and selected by the organization to fulfil the scope and meet the objectives.
How often should Advisory Boards meet?
Typically, Advisory Boards meet quarterly. However, some organizations might meet more often, depending on their needs.
