Five steps to getting value from your Advisory Board
Five steps to getting value from your Advisory Board.
Advisory Boards can really help transform a business or enhance the company’s reputation and credibility in the marketplace. Comprising a carefully chosen group of independent individuals, an Advisory Board offers invaluable advice and support to business owners, boards of directors, or shareholders, whether on specific projects or broader strategic initiatives. However, to fully harness the potential benefits of an Advisory Board, it is crucial to gauge and evaluate its contributions effectively.
David McEwen has worked with Advisory Boards and found the following five steps a useful guide for Business Owners, CEO’s and Chairman of
Boards to get the most value from their Advisory Board.
At the recent NSW Leaders event David presented the fifth step to getting value from your Advisory Board.
Measuring the impact of the Advisory Board
Understanding and quantifying the impact of an Advisory Board is essential for businesses seeking to leverage this invaluable resource
effectively. Advisory Boards play a pivotal role in providing strategic guidance, industry insights, and expertise to business
owners and decision-makers. However, assessing the tangible outcomes and benefits derived from such an experienced team can be
complex. Here are some methodologies and considerations involved in measuring the impact of an Advisory Board, to measure its effectiveness
accurately.
Define Key Performance Indicators
- Define Clear Objectives. You must have clear objectives (or purpose) for the advisory board's involvement.
- Identify Relevant Metrics. Focus on areas you expect the advisory board to impact e.g strategic guidance, market growth, innovation, or operational efficiency and select metrics that directly relate to the objectives.
- Establish SMART KPI’s ie Specific, Measurable, Achievable, Relevant and Time-bound.
Assess Effectiveness.
- Regular Evaluation of Progress. Actively seek feedback from your advisory board members by conducting structured feedback sessions.
- Seek Feedback. Create an open and continuous feedback loop and ensure the advisory board's recommendations remain relevant and aligned with your evolving business needs.
- Adjust and Improve. Revisit the initial objectives and expectations you set for the advisory board and ask the question: “Is the AB still aligned with the current needs and goals of your organisation”?
Adjust Strategies.
- Embrace Feedback as Fuel for Growth. Feedback from the advisory board is a valuable resource for growth and strategic refinement. Be open-minded, actively seek input and establish multiple feedback channels.
- Regular Evaluation. Ongoing improvement, emphasising the need for continuous evaluation and refinement of strategies. Set regular reviews, analyse outcomes and make adjustments.
- Flexibility in Strategy Execution. Remain flexible in executing strategies and be willing to pivot based on the advisory board's insights. If feedback suggests a change in direction, be prepared to adapt quickly however constantly ensure that you remain aligned with the overall business vision and goals.
In conclusion, measuring the impact of an Advisory Board is not merely an exercise in quantification, but a strategic imperative for organisations aiming to optimise their advisory resources. By employing robust assessment frameworks, tracking key performance indicators, and fostering transparent communication channels, businesses can gain valuable insights into the tangible value generated by their Advisory Board. Ultimately, a well-informed evaluation of the Advisory Board's impact empowers organisations to refine their strategic direction, enhance decision-making processes, and unlock new opportunities for growth and innovation. As businesses navigate an increasingly dynamic and competitive landscape, the ability to effectively measure and leverage the contributions of their Advisory Board becomes a cornerstone of sustainable success.
