Académique Documents
Professionnel Documents
Culture Documents
1 Function
o
3.1 Mandate
3.2 Focus
3.3 Size
3.6 Compensation
7 References
8 External links
Function[edit]
The function of an advisory board is to offer assistance to enterprises with
anything from marketing to managing human resources to influencing the
direction of regulators. Advisory boards are composed of accomplished
experts offering innovative advice and dynamic perspectives. [1] Meeting
quarterly or biannually, boards can provide strategic direction, guide quality
improvement, and assess program effectiveness.[2]
Entrepreneurs, especially from startup companies or small business may
not want to dilute their control of their business by establishing a board of
directors with formal responsibilities and authorities. Thus, an advisory
board may be a more suitable solution to entrepreneurs who want access
to high-quality advice and network in the industry. Advisory board, as an
external group, could also provide non-biased information and advice to
entrepreneurs.
provide unbiased insights and ideas from a third point-of-view (not involved
in the operation of the business)
challenge research and intelligence work being done in the company, thus
avoiding groupthink and giving direction on big picture issues.. [4]
Mandate[edit]
The type of advisory board members should be determined by the nature of
what is sought and expected from them by the enterprise. Advisory board
members should have distinctive knowledge on different aspects of
business such as marketing, product development, sales techniques that
are of use to the directors.
A lack of definition in what is sought from the advisory board or what sort
of advice is to be sought of would lead to a disorganized board, which
eventually could lead to an advisory board that provide less value per dollar
or hour invested than a well-mandated. Eventually, it could result a waste of
resources and time for the enterprise and the advisory board members.
Focus[edit]
The advisory board must determine what the focus of the committee is,
whether it is a broad focus or a narrow one on a specific product feature.
Size[edit]
Size of an advisory board influences the efficiency of delivering ongoing
information and effectiveness of organizing board meetings. A large
advisory board may result in managerial issues. Therefore, if is
recommended an advisory board to begin with the advisory board leader,
and grow from a fairly small size to its ultimate number. Group
dynamics suggests the maximum size for an advisory board is eight
members, which takes into account of the need for enterprise people and
other facilitators at meetings. Some advisory boards mandate may require
more significant representation of a specific and large number of
constituencies.
Term of Membership[edit]
Advisory board members could be appointed to specific terms i.e. one, two
or three years so that it ensures them to actively commit to the company
and prevent them to get too comfortable with their positions. Term of
membership is also important when it comes to expansion of the board;
term of membership ensures that the size of the advisory board remains
efficient and manageable.
Compensation[edit]
Advisory board members serve an enterprise for a range of reasons, from
personal loyalty to direct compensation. Compensations are important as
they give incentives to advisory board members to commit to the enterprise
and give quality advice.
For example, the director of Lorus Therapeutics Inc., Reiter,[5] had
described the compensations of members serving on the Lorus advisory
committee. Some of the compensations include:
Distance Control
Higher efficiency
Formal advice
Focused Input
Less compensation
An advisory board deals with a more narrow range of issues and meet less
often than board of directors. There is less commitment for advisory board
members compared to directors in the board. This is reflected in the lower
compensation advisory board members receive as compared to those in
the board of directors. Nevertheless, the compensation for advisory board
members depends on various factors, including return of investments, time,
organization and cost.
review the quality and relevance of the scientific and technical information
being used by the EPA or proposed as the basis for Agency regulations;
Give advice on the long-range strategy of the Institute for achieving its
mission to promote biomedical research and science education;
Structuring
[13]
Business plan is important not only for planning purposes, but also for
obtaining banking funding or other credit arrangements. Startup advisory
service could provide guidance to startup businesses on designing and
developing a comprehensive business plan.
Financial forecasting
[14]
[15]
Marketing strategy
References[edit]
from:http://www.hhmi.org/about/leadership/medical-
advisory-board
8. Jump up^ Gov.uk. About - Technical Advisory Board - GOV.UK
[Internet].
2013
[cited
25
October
2014].
Available
from: https://www.gov.uk/government/organisations/technicaladvisory-board/about
9. Jump up^ Cambridgescholars.com. Cambridge Scholars Publishing.
Editorial Advisory Board [Internet]. 2014 [cited 25 October 2014].
Available from:http://www.cambridgescholars.com/t/AdvisoryBoard
10.
2014
[cited
26
October
2014].
from:http://www.mrsc.org/publications/lgcab08.pdf
Available
11.
[Internet].
2014
[cited
27
October
2014].
Available
from: http://energy.gov/seab/secretary-energy-advisory-board
12.
[Internet].
2014
[cited
27
October
2014].
Available
from: http://www.venturearchetypes.com/work/startup/startupconsulting-advisory-board.html
15.
from: http://businessfinancemag.com/corporate-
finance/role-forecasting-financial-planning
16.
27
October
2014].
Available
from:http://smallbusiness.chron.com/importance-marketing-successbusiness-589.html