Advisory Boards FAQs

[expand title=”What is an Advisory Board?”]
An advisory board of an organization provides a structured, collaborative method to engage advisors and or stakeholders.

Advisory boards members include:

1. Representatives from the business or organization itself
2. An independent Chair
3. Selected Advisors

Members of the advisory board provide objective advice and mentoring to the business representatives. Prior to the first meeting, the Chair will define the scope of this advice based upon the results from a business needs assessment.

More detail on the roles and responsibilities can be found here_______. FAQ

Advisory Board Profile

• Independent Chair
• Charter purpose
• Advisor (s) purpose
• Structured and or informal (or both) meeting schedule, agenda and communications
• Member engagement parameters
• Mentor and Coaching to solve problem-solving Advisory Boards Help Topics?
• plan-scale-build sustainable growth and new markets
• Identify and execute “gap” solutions
• create-planning-execution of successful strategies
• successful delivery of “key organic changes” and fulfillment
• transforming business challenges & crises into “wins”
• cultivating a united and strong multi-generational workforce
• leadership and executive mastery trainings
• strategic or technical advice (IT/Engineering)

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[expand title=”Advisory Boards Help Topics?”]

• plan-scale-build sustainable growth and new markets
• Identify and execute “gap” solutions
• create-planning-execution of successful strategies
• successful delivery of “key organic changes” and fulfillment
• transforming business challenges & crises into “wins”
• cultivating a united and strong multi-generational workforce
• leadership and executive mastery trainings
• strategic or technical advice (IT/Engineering)

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[expand title=”What are the business benefits?”]

• Precise root cause identification
• Market Intelligence
• CEO, Executive and workforce fulfillment
• Management and workforce performance gap reduction
• Improved market strength, share, profits
• New insights
• Proven scaling tools/systems
• Test strategic thinking
• Access expertise
• Objective analysis
• Increased confidence
• Proven solutions
• Innovative thinking
• Lead successful change
• Generational Workforce Gap reduction
• Value and purpose-driven culture
• Business sustainability methods
• Reduced Gaps in Operations, Management and Operations
• Increased Revenue, net profits and market growth
• Business Exit-Sale Strategy Formula
• Professional Development Programming
• Influencer Leadership Impact
• Team Culture execution
• Customer & Workforce Retention & Loyalty
• Operational Efficiency
• Accounting System Transparency & Accountability

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[expand title=”Who Are Advisory Board Members?”]

Skilled professionals outside of the organization (not appointed by organization shareholders) and appointed by the organization within the organization’s industry sector (i.e. legal, financial, growth, supply & logistics, technology, marketing, sustainability, etc.)
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[expand title=”When and How does the Advisory Board Member’s Deliver their services?”]

• Semi-regular basis – 4-6x/year
• Monthly if required
• Open scheduling for “crisis or change” execution

Note: Particularly useful for high-growth businesses, family companies, crisis or change, duplicating executive functions, and installing an organizational advisory board.
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[expand title=”What is the difference between an Advisory Board and a Board of Directors?”]

Both types of boards are very different.

Comparison:

Advisory Board

• Deliver expert value
• Not shareholder
• Consultant-problem solving
• No fiduciary responsibility
• Governance responsibility

Board of Directors

• Can be shareholders
• Are fiduciary responsible
• Legally binding decisions

Advisory Board members offer strategic insights to inform the business owner, executives, or directors, who in turn will make decisions.

Advisory boards are known in the market by many different names including advisory panel, advisory council, steering committee, think tanks, board of advice and startup boards.
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[expand title=”How to Get Started and Hire an HAF Board Advisor ?”]

1. PREPARE TO GET WHAT YOU NEED FROM HAF BOARD ADVISOR
   1. STATE WHAT YOUR OUTCOME IS IN HIRING HAF BOARD ADVISOR
   2. STATE THE OUTCOME FULFILLMENT COMPLETION DATE
   3. ORGANIZE A SUMMARY DOCUMENT SHOWING:
      1. VISION STATEMENT
      2. MISSION STATEMENT
      3. VALUES
      4. STRATEGIC PLAN
      5. MARKETING STRATEGY
      6. CUSTOMER PROFILES
      7. MORE CAN BE ADDED WHEN REQUIRED BY BOARD ADVISOR
   4.  GATHER AND EVALUATE YOUR CURRENT BUSINESS, ITS CURRENT SITUATION AND PRIORITIES FOR THE FUTURE
   5. IF YOU KNOW THE GAPS THEN PROVIDE THEM
      1. EXECUTIVE TEAM GAPS, SUPPLIER GAPS
      2. WORKFORCE GAPS
      3. OPERATONAL GAPS
      4. CUSTOMER OR MARKET RETENTION PROBLEMS
2. Compile #1 above and have ready for submission to HAF Board Advisor
3. Submit #2 and request HAF to submit #4
4. HAF Board Advisor will provide a summary of findings regarding the outcome desired to the organization for review and acceptance. FAQ are available by conference.
5. Organization and HAF Board Advisor will execute an agreement with terms
6. HAF Board Advisor will schedule an “onboarding” conference that will include FAQ

Note: Anything missing from above list can be initiated and organized by HAF Board Advisor.

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[expand title=”How are individual board members compensated?”]

Compensation for individual board members is negotiated between the business and members.

Advisors will typically set their rates based on their level of experience and the expertise they can offer the business, their network or connections, the level of involvement and preparation required of them, and any expenses they will accrue during the course of the appointment.

Be mindful that an advisor’s rates are usually proportionate to their level of experience, commitment to professional development, and currency in the market.

While the arrangements with individual members can vary, they are generally compensated in one (or a combination of) the following ways:

• Per-meeting compensation: This is the most common arrangement. The advisor is remunerated for each meeting they attend, including any pre or post-meeting activities. Most businesses conduct between four and six half or full-day meetings per year.
• Annual retainer: Some organizations may opt to compensate their Chair or advisors on an annual retainer often paid monthly.
• Company stock: In some cases, such as a startup company, equity may be offered as part of the advisory board compensation. These types of arrangements require careful consideration and expert advice on structure to ensure they are appropriate to the short-term and long-term goals of the organization and individual advisors.
• Post-launch profits: Another less common option typically used by small startups is to offer advisors a percentage of the post-launch profits of the business. Navigation of these structures can be overly complex and potentially impact long-term business operations.
• Expenses only: In some cases the organization and advisors may opt for a pro-bono advisory engagement. Clear expectations should be outlined from both parties and generally, the business will still need to cover any expenses incurred by the advisor during the course of their participation.

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