An Advisory Board of One

What if you called an Advisory Board meeting and only one person came?  For some CEO/owners that is an ideal situation.  Working with a business advisor on a one-to-one basis can reap a variety of benefits.

In past issues of this newsletter, we’ve talked about the advantages of adding an advisory board to supplement and support your role as an owner/CEO of your company.  Such a board provides an advisory role, rather than one with all the legal ramifications of a corporate board. Advisory board members have virtually no legal responsibility, no approval obligations, no authority, no governance, no overview, no voting. 

Two major benefits derived from an Advisory Board are both an objective outside view, and access to seasoned expertise that many companies could not afford any other way.  This is something that owners should seriously consider - an “agenda-less” objective, outside perspective and knowledge in the running of their businesses.

Another highly effective advisory alternative is to establish a relationship with an individual business advisor.  You may already have an accountant and lawyer to assist you in matters of finance and the law.  But often a CEO can realize some real benefits from having a pure “business” advisor – someone who has already faced the issues, challenges and successes that he/she is currently facing in their own business.  Of particular value is the ability to provide you with a completely unencumbered viewpoint – a dedicated person with no agenda.  The advisor can get to know and understand the personalities and diversity of the executive group and provide objective feedback and analysis when needed – often helping to provide a 360º perspective to the CEO that he or she may not get any other way.  The ability to see something from a variety of angles is always very important when making key business decisions.  An advisor widens your view and helps to present a range of options that add to your own input.

A CEO with whom we are currently working shared with us his opinion of the one-to-one advisory relationship he has with one of our principals. He said that:

 “The value has been high – that and his long standing working relationship with our team which gives him insight.  He understands our industry, our business, and more importantly, he understands me. He has helped me depersonalize my decisions.”

Another important aspect of a one-to-one advisory relationship is trust and respect. The right advisor should have a solid background, have a high level of credibility, and be able to advise, not direct.  It’s important that the CEO/Owner be able to rely on the confidentiality and impartiality of the advisor.  The reality is that for some owners, discussing the details of their business is a very personal thing.  Rather than discussing problems or challenges with a group of people, some feel much more comfortable having these discussions with one trusted advisor.  Who can a CEO really talk to?  Well – certainly the executive staff, and perhaps the spouse or other family member.  But even then, there are issues or concerns that are hard to share.  When objectivity and confidentiality are paramount, a one-to-one advisory relationship is invaluable.  There is an aspect of ‘baring your soul’ with sharing confidential business information that is easier with a single advisor – and helps many entrepreneurs get over the barrier of talking about the business with “outsiders.”  An “advisory board of one” provides a personal and professional resource that a CEO can trust and rely upon – a business building asset that can reap enormous benefits.

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