ADVISORY BOARDS AND NON-EXECUTIVE DIRECTORS SUMMARY 1
This article is a summary of various previously published articles on this site with the topic; advisory board
A team of expert individuals that are chosen to assist in advising - a managing director or business owner - relating to a variety of business issues, topics such as business planning, growth & development, business funding, stakeholders management, marketing & sales, human resources, finance, manufacturing and more; a committee that gives critical consideration and (non-binding) advises / recommendations to the board of directors and executing management of a company however does not make any decisions or do not have any command to vote on company issues.
Advisory board - Summary - Consultdustry screens, select and contracts professional advisory board members, and offers this service in the ASEAN Countries.
These days, a raising amount of businesses are assigning an advisory boards. There are several excellent factors for a firm or organisation to do so. Maybe to ensure, getting practical, affordable, professional advice on lots of actual business topics, like for example; to acquire insights into doing business in varied local and/or international markets, or understand and use new technology or new regulations, or just reduce issues and improve business results, or to increase network and get access to new customers, business partners and financers. An advisory board might likewise gain firm's credibility, public relations and reputation management as it will increase a company network and therefore get access to new customers, business partners and financers.
An advisory board is no replacement for a formal statutory boards of directors. Undoubtedly, an appropriately and effectively constituted, advisory boards ought to complement and accompaniment as well as reinforce the existing board(s) of directors. Similarly, to be competent, an advisory board requires a clear command. The board's role in purpose, terms and conditions along with the expected term, must be stated from the beginning of the appointment.
An advisory board is an confidential but at the same time an informal committee of business experts and counselling professionals who assist a company, to run its organisation and its business better. Due to the fact that an advisory boards are informal, without the obligations of company board of directors, a business owner or managing director has a lot of latitude in the foundation and the method of a potential advisory board. In principal they would be create both in order to assist with issues that occur in company operations and also to provide information on multiple business, manufacturing, finance and legal trends which might affect in general the business and particular the company.
Usually, the composition of a desired advisory board is as follows; a business professional or marketer, an auditor, a legal expert, a human resources specialist and also probably a banker or finance expert. Do not forget to add additionally successful business owners / entrepreneurs in the industry or from other sectors who recognize the fundamentals of running a business and for sure they will come up with interesting fresh objective thoughts. When, at the formation, it lacks of personal contacts in the proficiencies who are willing to share, do not hesitate to contact the most successful business individuals whom can be found. Most will be flattered anyway and in the best case they will be joining the advisory board.
When establishing the advisory board, be very clear concerning the plans and what the intentions are. Inform your prospective advisory board members about the company goals and that they will NOT have an active role in daily operational management, they have a highly regarded, non-binding advisory role and that they are absolutely NOT liable for the conduct of the company.
Advisory board participant, non-executive directors, are mostly compensated by a reimbursement and an occasional dinner. Professional advisors may normally charge a reduced fee. It looks like an imbalance compare to the role and value, but bear in mind, by taking a seat in the board, members will likely have direct or indirect some advantages. Like gain new and additional expertise, such as; business information, concepts, opinions, viewpoint and key features and figures. And also a substantial expansion of their own network, which gives access to other opportunities as well.
For the advisory board meetings, there are 2 basic options or a mix of those two.
The full “formal” advisory board meeting, periodical scheduled, each month or every other month, with an agenda and notes with action list for distribution, shared with the directors.
Second method is "on demand" or topic related, very short term scheduled on company needs, only topic needed and involved consulting advisors. It actually relies on company demands, just what is convenient and the desired interaction with the advisors.
Valuable Expertise at an Advisory Board - a service by Consultdustry Business Consulting & Interim Management[/caption]
Our articles are based on Consultdustry substantial experience of assisting businesses to screen, select and appoint advisory board members and to evaluate the role and function as well as beneficial contribution of advisory boards carefully. We at Consultdustry conclude that advisors board can have a significantly beneficial role in assisting businesses through both periods of growth as in period of economic unpredictability.
Consultdustry screens, select and contracts professional advisory board members, and offers this service in
the ASEAN Countries; Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, The Philippines, Singapore, Thailand and Vietnam.
Category1 : advisory boards