When can an Advisory Board be useful?
An Advisory Board is often a natural choice for family owned businesses and startups, when there is a need for qualified advisors, while the Board of Directors consists primarily of the company owners. Advisory Board offers more freedom with regards to the formal requirements than a traditional board. It can be useful for shareholders and leaders who want to get perspectives from outside, be it specific areas of expertise or certain phases of the company lifecycle – an Advisory Board allows you to do that without disturbing the existing governance of the company. An Advisory Board has no formal voting power and is typically used for strategic guidance and expert advice.
My approach to Advisory Boards
I usually get engaged in Advisory Boards by company owners and leaders: I either help them establish an Advisory Board where it is relevant to do so, or take on a seat as an active member when a board is established, or both. I am usually brought in by the company leaders, founders, or owners f the family businesses. Sometimes an Advisory Board is initiated by the existing board of directors. My contribution is typically based on my expertise and industry experience, strategic outlook and professionalisation of the board operations, including identifying qualified external members. In a board setting I make sure that the roles, mandate and communication are clearly defined, ideally through a written agreement. This has proved to benefit and increase value creation through well functioning boards with complimentary skill sets that cover all identified needs of the company.
What results you can expect
- A clearly identified strategic direction that strengthens the foundation for success.
- In the case of “next generation” transition in family owned businesses, increased engagement and feeling of empowerment among the new owners as a result of customised advisory.
- Accelerated growth pace in startups due to access to relevant expertise and experience.
- Increased level of expertise in the times of quick changes and the need of new perspectives and knowledge.
Reference
“Birthe has a rare combination of professional expertise within traditional finance and more typical coaching and mentoring areas. Together with her ability to observe and adapt the shape to the context, it makes her a valuable contributor as an Advisor/Advisory Board member, as well as executive board member and mentor. I have personally had the pleasure and benefit of sparring with her when building up my own board portfolio, and worked together with her to develop a concept for Advisory Board. In my experience we compliment each other ver well in such occasions, and I am open to take on Advisory Board roles together with her in future.”
– Katrine Trovik, Advisor & Board Professional