Do you need a sounding board to discuss issues and developments within and outside your company? Then an Advisory Council can offer a solution. Only 1 in 20 medium-sized companies in the Netherlands uses an Advisory Board. Research shows that companies that use an Advisory Board achieve better results. They grow faster and/or perform better financially. That is why it is useful to know more about an Advisory Board!
An Advisory Board is a group of independent confidential advisers who assist the management of a company with valuable knowledge, experience and a network and who feel connected to the success of the organization. A clever definition, but who is an Advisory Board for and what does an Advisory Board actually do? An Advisory Board regularly meets with the management to discuss the difficult issues facing the management of a company in an open atmosphere. That can be once a month or quarter, whichever is desirable. The persons who sit on the Advisory Board, usually 3 and a maximum of 5 persons, each have knowledge and experience in a different field, such that every relevant expertise for the company is represented in the Advisory Board.
Because Advisory Board members do not work for the company and are independent, issues can be openly submitted by the management within the Advisory Board. The Advisory Board provides advice and support in tackling issues based on knowledge and experience and provides solutions by bringing you into contact with useful people from their network. In addition, the Advisory Board members are critical of the management's actions without any consequences being attached to this. As the name suggests, the Advisory Council advises. The management is free to follow advice and remains responsible for the decisions it takes. This means that an Advisory Board can be organized quickly, easily and relatively cheaply. As an entrepreneur, you have your own 'club of wise men' and/or women!
Added value of an Advisory Board at a glance
- Permanent experienced discussion partners with an objective view at your company
- Valuable knowledge and experience
- Access to an interesting network for your issues
- Trust of suppliers and financiers, after all, an Advisory Board is watching
- Quick, easy and relatively cheap to set up
Establishing an Advisory Board
You decide yourself who takes a seat on the Advisory Board. These can be skilled (former) entrepreneurs or contacts from your network. It is important that you can trust that the Advisory Board members are honest in their opinion and advice and that they are not hindered by any friendly relationship you have with them. Ensure that Advisory Board members complement each other, so that the background and expertise is diverse and preferably that every expertise relevant to the company is represented in the Advisory Board.
Despite the advisory role of Advisory Board members, it is good to record the agreements with the Advisory Board members in an agreement. The remuneration for Advisory Board members can also be laid down in this; that is a fixed amount per month or year for their involvement and commitment to the company.
Triple Group is experienced in organizing and composing an Advisory Board. In addition, various officers of Triple Group themselves participate in an Advisory Board. Furthermore, Triple Group is also familiar with other forms of strategic management, such as the Supervisory Board, STAK or (interim) management.
Interested in this subject or would you like to exchange ideas without obligation, please contact Ruud van der Knaap via r.vanderknaap@triple-group.nl, 06-23534931 or Marcel van der Zwan m.vanderzwan@triple-group.nl, 06-53781510.
Establishing an Advisory Board is worth your consideration!