Looking for the ABF101 Advisory Board Best Practice Framework™ information? Find it here.
Across Australia, significant investment has occurred in supporting more people to start their own businesses. The next stage in supporting entrepreneurship is to understand the conditions needed by owners to scale their business.
As part of this collaborative research project led by the Advisory Board Centre, we are seeking to explore the barriers to scaling a business for founders and owners. To capitalise on the investment made to encourage entrepreneurship and significantly advance the economic participation and impact of Australian businesses, we need to uncover and understand what works and where there may be barriers.
The Advisory Board Centre 2019 State of the Market Report is an evaluation of current practices,
trends, and implications. This report delivers market insights that allow businesses, advisors, industry groups, government, and academics to retain currency in the market.
With the absence of direct information on the size of the Advisory Board sector globally, to gain insight into the size of the sector, a data sample was evaluated from Linkedin of professionals currently working on Advisory Boards.
Advisor calculation – A data analysis was conducted on Linkedin Titles using two methods. Advisory Board “current role” search. A validation test was conducted with 100 “current” roles in the Canadian market. This produced a 5% variability between the tile “Advisory Board” and the actual current roles.
Advisory Board calculation – The study of Advisory Board structures in 2018 identified best practice for Formalised Advisory Boards which included 3 external roles on Average for formalised Advisory Boards This includes an Independent Chair and 2 external advisors. This calculation has been applied to the Advisor calculation method.
The process of scoping an Advisory Board and the roles within it requires an evaluation of the business priorities, strategic intent and the motivations of the owners and executives. Considerations for the business include the process of establishing their Advisory Board structure, accessing the appropriate people and appointing the various Advisory roles.
Within this report we review the demand of newly created Advisory roles and the mega trends that
are shaping how businesses engage external Advisors. This includes based Advisory Boards and the demand for sector based expertise.
The research is based on a series of surveys conducted on behalf of the Advisory Board Centre and actual case studies of Advisory Board activities from July 2017 to December 2018.
Individual respondents were drawn from 250 individual chairs, advisors and experts. Participating organisations include those which are actively engaged with more than 100 Advisory Board events. These firms range from pre-revenue start-ups to organisations with annual turnover of $200m.
Note: This research report is available exclusively to Professional Members.
Evaluating market rates provides us with a starting point of understanding “value transmission” within advisor engagement. There are interesting trends identified in this report providing insight into business investment and what they are willing to pay. Beyond this, we also have an indication of the complexity that comes with an engagement between a business and an individual advisor. Ethics in success fee structures, independence and risk/reward engagement parameters are examples of how and why rates are charged.
Our research catalogue commenced in 2002. If you have any questions about research findings, contact email@example.com.
Research collaboration is core to gathering data and sharing the key learnings within the market. Examples of collaboration include:
A Employment Systems in Small Firms: A Multilevel analysis
Data gathered from 2008 – 2010 was shared with an Independent Academic Committee who completed and published a Report in an A Class Journal for Small Business. Committee members were
Verreynne, M., Parker, P., & Wilson, M.. Employment systems in small firms: A multilevel analysis, International Small Business Journal.