As a business leader, it can be lonely at the top. The higher you climb, the fewer people there are who understand the unique challenges you face in steering your company towards continued growth and success. That’s where an outside peer advisory board can provide tremendous value.
What is a Peer Advisory Board?
A peer advisory board (also known as a board of advisors, advisory council, advisory committee, or expert panel) is a group of trusted outside advisors who offer informed counsel, share expertise and provide guidance to help you enhance your leadership capabilities and drive business performance.
Unlike a traditional corporate board of directors which oversees governance and compliance, a peer advisory board serves in an advisory capacity only. They have no formal authority over company operations. Their role is to collaborate with you, act as a sounding board, offer strategic advice and provide an outside perspective to help you make smarter decisions.
Why You Need a Peer Advisory Board
As an entrepreneur and business leader, it’s easy to become isolated in your own thinking. A diverse group of strategic advisors can provide insights you may not have considered and challenge your assumptions in constructive ways. Here are some of the key benefits of leveraging an outside peer advisory board:
Gain Different Perspectives
A peer advisory board exposes you to a range of professional backgrounds, industry experience, leadership styles and informed opinions. This diversity of perspectives can shed new light on challenges and uncover innovative solutions.
Tap into Specialized Expertise
Recruit advisors who possess deep functional expertise (sales, marketing, finance, HR, etc.) or industry-specific knowledge to help inform strategic planning. Advisors can provide best practice advice drawn from their experience.
Enhance Leadership Capabilities
Interacting with experienced advisors, mentors and coaches can help you further cultivate your leadership, strategic thinking, decision making, communication and management capabilities. Their guidance supports your continued professional development.
Accelerate Growth
Leveraging the knowledge and connections of industry leaders, thought leaders and influencers can unlock new partnerships, relationships and opportunities to accelerate growth and expansion
Achieve Alignment
Advisors can assist with aligning strategy, culture, processes, people and resources to drive greater operational excellence and help you execute on strategic priorities.
Gain Confidence
When tackling complex challenges or making major decisions, it can be invaluable to test your thinking and gain confidence by engaging advisory peers for constructive feedback.
Avoid Pitfalls
Learn from the hard-won experience of others. Advisors who have walked in your shoes can provide counsel on potential pitfalls to avoid and offer seasoned advice on key issues like growth management, leadership transitions, crisis leadership and more.
Break Silos
An outside perspective can help overcome organizational silos and politics that may hinder open communication and alignment on key priorities across the business.
Provide Accountability
Knowing you need to present plans and priorities to a group of trusted advisors creates accountability to execute on agreed upon goals and initiatives.
Best Practices for Assembling an Effective Advisory Board
If you decide to establish a peer advisory board, follow these proven guidelines to build a cohesive group that delivers maximum impact:
Seek Diversity
Aim for diversity in background, experience, expertise, perspective, age and gender on your advisory board. Different viewpoints enrich discussion and lead to more balanced counsel.
Recruit Accomplished Leaders
Search for respected executives, directors, thought leaders, subject matter experts and industry specialists who bring impressive credentials and qualifications to share their knowledge.
Check for Chemistry
Make sure to meet one-on-one with potential advisors to assess compatibility and comfort in working together. Mutual trust and respect are crucial.
Define Roles and Expectations
Be clear on what role you want advisors to play, expected commitment, term length, compensation (if any), and rules of engagement to avoid misunderstandings down the road.
Look for Engagement
Seek advisors who come prepared, actively listen, ask thoughtful questions, provide useful input and maintain confidentiality. Assess engagement level.
Limit Tenure
Consider limiting advisor terms to refresh perspectives periodically with new members. Stagger terms for continuity.
Compensate Strategically
Compensation, if offered, can range from cash stipends to equity grants. Ensure compensation aligns advisor incentives with company interests.
Hold Regular Meetings
Convene your advisory board at least quarterly. A consistent meeting rhythm drives meaningful engagement. Distribute materials for review at least one week in advance of each meeting.
Set a Forward-Looking Agenda
Focus the agenda on constructive dialogue around key strategic issues, not routine operational updates. Seek focused input to inform major decisions.
Encourage Open Dialogue
Foster candid discussion and active debate. Advisors should feel comfortable challenging your thinking once rapport and trust are established.
Actively Listen
Actively listen to advisor input without being defensive. Reflect back what you hear and ask clarifying questions to fully understand diverse viewpoints.
Share More, Talk Less
Resist the urge to do too much talking as the head of your company. Your goal is to access advisor insights, so make sure there’s ample time for discussion.
Align on Next Steps
Summarize the advice and perspectives shared to gain alignment. Outline action steps and accountabilities. Follow up to support implementation.
Give Recognition
Find appropriate ways to recognize the time, commitment and value that engaged advisors are providing. Effects like awards, events, gifts or simple thanks go a long way.
Key Takeaways on Leveraging an Outside Peer Advisory Board
Here are the most important points to remember on forming and interacting with an outside peer advisory board:
- Seeks diverse perspectives unlike your own
- Taps specialized expertise outside your current leadership team
- Provides confidential sounding board for strategic issues
- Accelerates growth through access to new relationships
- Aligns organization on objectives through outside lens
- Tests critical assumptions and provides unbiased feedback
- Helps identify potential pitfalls based on experience
- Creates accountability to execute on agreed priorities
- Requires commitment, candor, trust and active participation
- Most effective when assembled strategically and engaged consistently
FAQs
Who should be part of my advisory board?
Aim for a diverse mix of 7-10 respected industry veterans, subject matter experts, thought leaders and seasoned executives whose experience aligns with your most pressing growth challenges and opportunities. Assess chemistry fit.
What time commitment is required from advisors?
8-10 annual meetings of 4-7 hours each. Advisors should invest time preparing for/participating in meetings and making introductions. Some ad hoc consultation may be needed between meetings.
What should I expect from engaged advisors?
Preparedness, candor, collaboration, accountability, access to connections/networks, independent thinking, willingness to challenge you, commitment to your success.
How should advisory board meetings be structured?
Have a forward-looking agenda focused on key strategic issues/decisions. Provide materials at least one week in advance. Allow ample discussion time for advisor perspectives and feedback.
What are best practices for effectively leveraging my board?
Set clear expectations upfront. Keep an open mind. Listen intently. Engage regularly. Focus on strategic insights, not operations. Implement advice through agreed actions. Express appreciation.
Are You Looking To Become Part of a Peer Advisory Board?
If you’re a CEO or business owner interested in gaining strategic advantage through the guidance of an outside peer advisory board, join our upcoming in-person session with us at the CEO Resource Board.
This collaborative group of cross-industry leaders from the greater Vancouver, Vancouver Island, and Okanagan area are committed to learning from each other through open sharing and advisory support.
With hundreds of years of collective experience in the room, you will find immense value and reach new levels of performance and profitability for your business.
Don’t miss this opportunity to join a group of your CEO/owner peers in leveraging real-world insights to overcome challenges, capitalize on opportunities, and accelerate success.
**Reserve your seat today! Reach out to us at support@ceoresourceboard.com
The combined leadership experience at the table will provide perspective and strategic advice you simply can’t find anywhere else.
