09 Nov Explaining the Latest trends for formation of an Advisory Board Company
A good Advisory Board Company can help provide valuable guidance to an organisation as to latest marketplace trends and the direction of the company should be headed in for long term success. Forming an effective Advisory Board Company should take into account the latest in trends so that management can create the right structure for their advisory boards that requires minimum input of resources.
Look for both national and regional participants
An Advisory Board Company will need participants on the board who provide both insights on a national as well as regional level. Therefore, it is important to select a mix of experts who participate in national conferences and are therefore aware of what market trends the country as a whole is leaning towards, while regional experts would be able to help with overcoming rivals in the locality as well as determining any obstacles that can threaten the company’s success in their selected base. Market insights show that while 56% of large companies prefer to have only national experts on their advisory boards, 33% opt for a mix of both national as well as regional experts.
Recommended structure for advisory boards
An advisory board should comprise of a suitable number of individuals who can bring a good combination of skills and expertise to the table. Today, a lot of top companies invest in digital experts as part of their advisory board so that they can tap into the huge online market that exists. Choosing the right mix of skills is also dependent on the industry that your company caters to. For instance, in the case of a pharmaceutical company, the advisory board should comprise both physicians and clinicians to provide a more accurate picture of the industry as a whole.
Choosing the right people for the job
Selecting people from diverse backgrounds is also a good strategy used by large companies to structure their advisory board. A lot of companies these days get young people on their advisory board to provide a reference for more fresh ideas that a young, digital savvy customer might come to expect. They also tend to choose people from fields like gaming, digital communities as well as analytics so that there is a healthy mix of ideas that comes to the discussion table.
Best practices for a constructive advisory board
An effective advisory board lays out a framework of best practices to ensure that it stays on top of its game. Some best practices that are trending include:
- Work under a fixed set of bylaws
- Form a strategy at the beginning of the fiscal year that is periodically reviewed
- Hold regular advisory board meetings and record the minutes
- Deliver high impact advisory and results
- Actively watch for market trends and post fresh ideas on an ongoing basis
Finally, you need to make sure that your advisory board is adequately compensated for their time and effort. This will automatically translate to them wanting to help your business grow and expand, and therefore providing you with insight that counts.