Forming an Advisory Board

Executive Summary

“Where no counsel is, the people fall: but in the multitude of counselors there is safety.” – Proverbs 11:14

Forming an Advisory Board

Scott McDevitt, Founder of TLI

I’d like to quickly share with you the benefits of having an advisory board regardless of the size of your company. If you are interested in forming a board, I have tips to help you get started. Feel free to implement what is useful and contact me if I can help in any way.

Benefits of an Advisory Board

Holds you accountable as the CEO or owner of the organization. You may be in a position where you don’t have accountability other than to your customers.

1. Meet quarterly and discuss financial statements. There are times I have tough questions that must be answered.
2. Share your 12-month strategic plan and interrogate me on where we are falling short on execution to determine what we will do differently next time.
   

You have a team of “go-to” experts for when something extraordinary occurs and you need advice, feedback, and a game plan to strategize on. Examples:

1. Losing a large customer
2. A leader within a leadership role didn’t come through as promised.
3. A great sales rep is hurting your company culture
   

Available for a 1:1 meeting when your executive team has something beyond their expertise.

1. Launching a new service/product
2. Acquisitions

Forming an Advisory Board Checklist

What do you want the Purpose, Objectives, & Goals of the Advisory Board to be?

1. Review Quarterly Financial Results
2. Create the vision of where the company is headed
3. Receive advice and guidance to move in the proposed direction that would enable your company to grow faster, sustainably, with maximum ROI
4. Recommend alternative directions that will enable you to be more successful
5. Challenge/question current plans/milestones to achieve better revenue and earnings targets
6. Evaluate the organization’s leadership capabilities and advise on where there is needed support due to skill-set deficiencies
   

What is the needed skill set for your Advisory Board Members?

1. Financial background
2. Marketing background
3. ‘Well rounded’ business background from years of wisdom developed in various operations roles
4. Technology background
5. Industry specific expertise
6. ‘Friend of the family’ – an advisory who shares your vision & values
   

What are the expectations of Advisory Board Members?

1. Each member is expected to:
2. Attend each meeting
3. Come prepared
4. Reading the agenda & financials prior to the meeting
5. Participate through the meeting
6. Each member will receive $/meeting to reward their contributions to the Advisory Board initiative

When & What will the agenda look like? i.e.

1. Held the first Thursday of the second month of each quarter (gives time for financials to be prepared and analyzed prior to the meeting)
2. Meetings will be 2:00-5:00 PM with dinner provided following the meeting
3. A typical agenda is prepared in advance that reviews the prior meeting minutes, financial statements, KPIs, and a key topic of discussion to be reviewed.

 If you are entering this year’s strategic planning please be sure to read my advise on how to get through your meeting as productively as possible!