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Fundamentals
What are Advisory Boards Roles & Responsibilities?
Explore the fundamentals of understanding the roles and responsibilities of advisory board members.
Fundamentals
Published 25 September 2020
The ABF101 Advisory Board Best Practice Framework™ has been carefully developed to respect and support the balance required between purpose, people and process to create a strong foundation to Advisor engagement.
The ABF101 Framework is based on five key principles –clarity of scope, independence and fit-for-purpose, measurement, structure and discipline.
Let’s explore the “Structure and Discipline” principle.
Every organisation will have their own approach to strategic management. The ABF101 Framework is not about red tape, regulations and procedures. It is about flexibility, enablement and harnessing the powerhouse of expertise to make things happen. Inherently it is purposeful, flexible and agile.
Within the ABF101 Framework, Structure and Discipline and Measurement principles underpin the Advisory Board’s PROCESS section.
Structure and Discipline: The advisory board structure is clearly outlined with management protocols to establish, manage, and review effectiveness.
By taking the time to clearly define the Advisory Board structure it allows for elevated advisory conversations. Meetings are not dominated by process discussions. This allows for efficient operations of the Advisory Board including internal management, preparation from the organisation and the advisory members, and high quality, future-focussed discussions aligned to the organisation’s priorities.
A disciplined approach supports the transition from informal mentoring and coaching to a formalised Advisory Board. This is an important step for emerging organisations to support growth and scale ambitions. The Advisory Board Centre’s State of the Market Report identified that while emerging business had a high level of ambition to implement an Advisory Board, over 50% of these engagements were postponed due to the firm’s lack of planning, resources, and clarity of expectations.
It is estimated that 6% of businesses in the OECD ($1.5m to $100m in revenue turnover) show high potential to engage an Advisory Board, and the number of Advisory Boards established to support them is set to grow. In 2018, 92% of advisor appointments were for new Advisory Boards, and 8% were for existing Advisory Boards.
With many organisations looking to establish their Advisory Board for the first time, both the organisation and the Advisory Board members will benefit from structure and discipline.
The ABF101 Framework provides a balanced approach to Advisory Board establishment and facilitation. It recognises the balance necessary for defining a purpose that is unique to the organisation and applying good governance of people and processes.
Updated: June 2024, based on the ABF101 Advisory Board Best Practice Framework Third Edition.