What is an Advisory Board? In the most practical terms, an Advisory Board is a…
What are the different types of Advisory Boards?
What are the different types of advisory boards?
There are several popular models of advisory boards each with their own characteristics. Each type of advisory board is useful for different situations within an organisation.
Informal Advisory Board
Informal Advisory Boards are commonly used for businesses with very limited budget. These are often operated with a group of volunteer supporters with a very ad-hoc style discussion. This style isn’t considered best practice but can often lead to positive results, especially in early business stages.
Formalised Advisory Board for Business
A Formalised Advisory Board has an independent Certified Chair, a Charter, minutes and annual economic impact measurement. The most common composition is 2 internal Directors, a Certified Chair and 2 external advisors chosen specifically for the priorities identified in the charter. The meeting schedule is often quarterly with the Chair and Directors meeting more frequently.
Formal Project Advisory Board
A Formal Project Advisory Board is formed for a specific purpose and period of time. The timeframes generally range between 3 and 18 months and it’s sole focus is on a specific project.
Formal Corporatised Advisory Board
A formal Corporatised Advisory Board is similar to a Project Advisory Board with the organisation also having a Governance Board in place. The charter within these boards articulates the reporting mechanisms of the Advisory board and where it sits in relation to the Governance Board. This board is often used in multinational operations, commercialisation and innovation.
Selecting the applicable board is crucial to the success of business goals and should be one of the first steps in establishing an Advisory Board.
The Advisory Board Centre provides membership, certification and best practice training for Board Chairs and Advisors. When you are engaging strategic Advisors in your business- look for the logo: