Advisory groups require time and money. Their benefits should be clearly defined and measurable to be worth the investment.
The group’s charter should include membership, compensation and terms, meeting frequency, goals, and expectations. It’s also important to set measurable milestones, track progress against KPIs and swap out members when their contribution becomes ineffective.
Advisory Groups Are a Great Way to Get Feedback
A well-run advisory group can provide valuable insights to your company. A study by the Business Development Bank of Canada found that companies with advisory boards saw 24% more annual sales growth than those without them.
Often, these groups are customers willing to share their experiences with your product and their opinions and expertise in their industry. They can offer invaluable market insight and help to identify areas for improvement.
When selecting members of an advisory board, it’s important to find people who fit your organization’s culture and values. They should also have the right skill set, level of industry knowledge, and interest in helping your company succeed.
Advisory board members should be able to openly discuss their experiences, opinions, and ideas with the company hiring them. Having a clear goal and agenda for each meeting is important to get the most out of your advisory board.
They Can Help You Make Decisions
The advice the canopy advisory group provides is important, but there should be other ways a nonprofit makes decisions. Having the right board management tools in place allows for a more effective process, whether tracking the goals of an advisory group or simply ensuring measurable aspects are included in the advisory board charter.
The same goes for customer advisory boards, which can help you make better product decisions by providing input on everything from how your customers use your product to their preferred features down the line. Moreover, since customer advisory boards make customers feel valued, they are likelier to become brand ambassadors and buy into higher-tiered offerings.
Depending on your organization’s needs, it might be best for an advisory board to remain in place until it has accomplished its purpose and disbanded. In this case, a clear plan should be set for how the advisory board will dissolve and when, and all members should be aware of it from the start.
They Can Be a Resource
An advisory group’s success depends on a clear purpose and clearly defined goals. It should be clear to group members at the outset, even before they agree to participate. Suppose they come to a meeting expecting to provide their opinion on the effectiveness of a medical simulation program and instead be asked to give input on an evaluation design. In that case, they may feel frustrated with their experience and may not participate in future meetings.
A group’s size should be carefully considered as well. While a larger group could have the advantage of a greater breadth of knowledge, a study by the University of Pennsylvania found that collaboration can begin to suffer as groups grow beyond five people.
Term limits are also important; this helps keep an advisory board fresh and prevents members from becoming too comfortable with their roles. Similarly, goal tracking and progress should be part of an advisory board’s role; this helps keep the board focused and accountable for its role in the company.
They Can Be a Mentor
An advisory board is an excellent way for a startup to get insight into industry trends and build relationships with thought leaders. For example, the members of an advisory board might help the startup stay on top of changes in consumer purchasing habits by sharing research or giving advice on new marketing strategies.
An advisory group can also be a source of mentorship for the founders. For example, if a board member has connections in a particular industry, they can introduce the founders to potential customers or investors. Similarly, if an advisory board member has experience in leadership, they can coach the founders on approaching new challenges.
When assembling an advisory board, it’s important to think carefully about the needs of each person involved and the goals you hope to achieve with their help. Ensure clear expectations for meetings, communication, and feedback before bringing them on board.
