Peer advisory boards provide a unique opportunity for business leaders to tap into the collective wisdom and experience of their peers. By coming together in a confidential and collaborative setting, members can gain insights and perspective to help them overcome challenges, identify opportunities, and take their organizations to the next level. This article will explore the value peer advisory boards offer, who can benefit from joining, and how to maximize the experience.
What is a Peer Advisory Board?
A peer advisory board, also known as a peer board or business advisory board, is a group of 8-16 non-competing business leaders who meet regularly to serve as a sounding board for one another1. The board is facilitated by an experienced chairperson who guides the discussion and ensures participation from all members.
Peer advisory boards provide a safe, confidential forum for business leaders to gain unbiased advice and feedback on both business and personal issues from others who can relate to the challenges of leading an organization. Membership spans a diverse range of industries to get perspective from outside one’s own niche. The board functions as a mastermind group, with the collective experience greater than any one individual. While each meeting varies, they often follow a similar structure:
- Updates – Members share progress and metrics since the last meeting. This provides accountability to execute on ideas and input received.
- Education – The facilitator presents new concepts or brings in subject matter experts on topics valuable to members. This allows for continuous learning.
- Discussion – Each member presents a current business challenge or opportunity and receives insights from the group. Getting perspective from seasoned leaders often uncovers fresh solutions.
In addition to the monthly peer board meetings, members have access to the facilitator for one-on-one coaching and support. There may also be opportunities for social events, leadership development, and connecting with a broader network of peers.
The Benefits of Joining a Peer Advisory Board
Peer advisory boards offer a multitude of benefits both professionally and personally for members. Here are some of the top ways members can gain value from the experience:
1. Gain Unbiased Advice in a Safe Environment
Running a business can feel isolating, and leaders may hesitate to discuss vulnerabilities or challenges openly. A peer advisory board offers a judgment-free zone to share openly and work through issues. Since members come from unrelated industries, they provide an outside perspective, without preconceived notions or biases. Members must commit to confidentiality, which creates an environment of trust.
2. Leadership Development
Serving on a peer advisory board accelerates leadership growth. As members share diverse approaches to common problems, they are exposed to new ways of thinking. The variety of perspectives and experience levels pushes members to improve their own leadership capabilities. They also receive honest feedback and coaching.
3. Avoid Pitfalls
Learning from the mistakes and trials of peers helps leaders anticipate potential problems in their own organizations. By understanding common pitfalls and challenges other companies face, they can be more proactive in their own planning and risk mitigation. This allows them to avoid costly missteps.
4. Identify Blind Spots
Every leader and organization has blind spots – areas where they lack experience or need to improve. A peer advisory board helps uncover those areas through constructive feedback and diagnostics. By better understanding weaknesses, members can take action to develop new skills or bring in outside expertise.
5. Inspiration and Motivation
Surrounding yourself with positive, successful people generates inspiration and motivation. Other members provide real-world examples of overcoming adversity, achieving growth and excellence. Their energy and passion is contagious.
6. Accountability and Implementation
Peer advisory boards build in accountability, as members commit to actions and report back on progress. Knowing you will share results with respected colleagues makes you more likely to implement ideas. The group support increases commitment and discipline.
7. Expanded Network
In addition to the monthly board, members gain access to a broader network of peers. This provides connections for referrals, advice, partnership opportunities and more. Peer relationships often become trusted friendships.
8. Improved Work-Life Balance
The guidance on leadership and business best practices from peer boards allows members to work “on” their businesses, not just “in” their businesses. This provides more freedom and flexibility. Members learn to prioritize and delegate better.
9. Higher Business Valuations
Members report that joining a peer advisory board leads to substantial business growth and improved operations. This directly translates to higher valuations for exit or sale. Boards give insight into how to run a company attractively for acquisition.
10. Greater Career Satisfaction
The combination of business and personal growth that results from peer boards leads to greater fulfillment and enjoyment in one’s career. Having a supportive group to share wins, losses and lessons with increases resilience and satisfaction.
Who Can Benefit from Joining a Peer Advisory Board?
- Peer advisory boards offer immense value to business leaders across industries, at various stages of their careers. Potential members include:
- Entrepreneurs – Founders need guidance as they build their business. Boards provide direction through unknown territory.
- New Leaders – First-time executives gain wisdom from more experienced members. This helps them avoid mistakes and find their leadership style.
- Successors – Next generation family business leaders get perspective from peers in similar positions. Boards help build skills to lead.
- Established Executives – Leaders of mature companies use boards to spur innovation, avoid stagnation and plan succession.
- Technical Experts – Engineers, doctors and other specialists gain business leadership skills from collaborating with peers.
- Acquired Leaders – Those new to leadership due to an acquisition or merger leverage boards to successfully transition.
- Isolated Leaders – Leaders without trusted advisors use boards to share openly and gain counsel.
- Rapid-Growth Leaders – Executives of quickly scaling companies rely on guidance to manage explosive expansion.
- Struggling Leaders – Leaders trying to save a distressed business get support exploring turnaround options.
The diversity of backgrounds, experience levels and industries makes peer advisory boards universally valuable for any leader seeking unbiased guidance from those who understand their role.
How to Maximize the Value Gained from a Peer Advisory Board
- To fully capitalize on the benefits of a peer advisory board, members should:
- Attend consistently – Regular participation ensures you give and get maximum value. Prioritize attendance, barring emergencies.
- Engage fully – Be present and engaged during meetings. Listen intently. Provide thoughtful feedback.
- Open up – Be vulnerable and share your real challenges. The more open you are, the more you gain.
- Follow through – Implement the advice received and report back. Don’t let great input go to waste.
- Build relationships – Get to know your peers. Connect outside of meetings. Relationships amplify the experience.
- Participate in events – Attend social and educational events to widen your network and learning.
- Access coaching – Leverage your facilitator’s experience through one-on-one coaching sessions.
- Give back – Offer peers your best guidance. Everyone’s contributions add value.
The Synergy of Shared Wisdom
The collective wisdom that comes from assembling a diverse group of trusted peers is immense. Peer advisory boards exemplify the concept of synergy – the whole being greater than the sum of its parts. By tapping into the synergistic power of shared experience, leaders can gain perspective and knowledge far beyond what they could achieve alone.
Peer boards create connections and community. They break down barriers and foster understanding between leaders across industries and backgrounds. The non-competitive, collaborative nature of boards leads to fuller expression of ideas and creativity. Diversity of thought breeds innovation.
Final Thoughts
For leaders feeling the isolation and weight of responsibility that comes with guiding an organization, peer advisory boards provide a safe harbor. They offer unbiased guidance, motivation and accountability in a confidential setting. By investing time in this synergistic experience, members gain access to collective knowledge beyond their own.
Join Our Advisory Board for Non-Competing CEOs
I hope this overview has shown the immense value an experienced advisory board can contribute to strategic leadership and company growth. While they require effort to manage properly, the payoff in trusted guidance is well worth it.
Here at CEO Resource, we run a collaborative peer advisory board for non-competing owners, founders, and CEOs throughout British Columbia. Members rave about how much they gain from our quarterly working sessions and ongoing mentorship.
We have a few open spots at our upcoming meeting. If you lead a private company and want to take your game to the next level, get in touch today to learn more and request an invitation. Our group of seasoned business consultants looks forward to welcoming you!
Key Takeaways
- Peer advisory boards provide confidential guidance from a group of non-competing business leaders.
- Members gain unbiased advice, leadership development, motivation, accountability and an expanded network.
- Leaders at all stages and industries can benefit from the collective wisdom of peers.
- To maximize the experience, members should attend consistently, engage fully, be vulnerable, follow through on advice, build relationships, access coaching, and give back to the group.
- The diversity of perspectives creates synergy, where the collective knowledge is greater than any one individual’s.
FAQ
What is a peer advisory board?
A peer advisory board is a group of 8-16 CEOs and business leaders from non-competing industries who meet regularly to serve as a sounding board, provide support, and share expertise with one another.
What are the benefits of joining a peer advisory board?
Key benefits include gaining unbiased advice in a safe environment, leadership development, avoiding pitfalls, identifying blindspots, inspiration/motivation, accountability, an expanded professional network, improved work-life balance, higher business valuations, and greater career satisfaction.
Who can join a peer advisory board?
Peer boards benefit leaders across industries and career stages, including entrepreneurs, new leaders, successors, established executives, technical experts, acquired leaders, isolated leaders, rapid-growth leaders, and struggling leaders.
What is the time commitment?
Most boards meet for 4-8 hours once per month. Some also have annual retreats and social events. Members gain access to the facilitator for coaching.
How much does it cost to join?
Membership fees vary based on the organization, location, and services provided. Often there is an initial membership fee and then ongoing monthly or annual dues.
How are the groups structured?
Boards typically have a trained facilitator. Meetings include education, discussing issues, and providing input to other members. Confidentiality and non-compete agreements are required.
How can I get the most value from the experience?
Full participation, being vulnerable, following through on advice, building relationships, attending events, using coaching, contributing insights, and attending consistently will provide maximum benefit.