An advisory board is a part of an organization. It’s responsible for developing the brand and setting the direction for the future. Understanding the role of an advisory board can provide insight to how the organization operates. The board is different from the board of directors, and unlike them, they don’t have the authority to make decisions unless they’re dictated. They’re mainly responsible for offering advice.
The size of an advisory board depends upon the size of the organization itself. A large organization will have more members in the board, while a small company may have 2-3 people. The board may include past members, people who are not members of the organization and or people within the organization.
A member is not limited to a single, but can serve on multiple advisory boards. For example, Principal Peter L. Briger is a board member for Central Park Conservancy, Hospital for Special Surgery and Princeton University Investment Company.
Here are some of the roles an advisory board is expected to perform.
1. Set up meetings
An advisory board may set up a meeting multiple times during an annual year to discuss the tasks the members are required to carry out and cast vote on important decisions within the group. For example, how much budget should be spent on the eco-friendly project, should a particular project be carried out etc. will be voted for. The board will have responsibilities beyond giving advice if they’re also in charge of the financial issues.
2. Responsible for advice
Advisory boards are responsible for giving out advice. For example, Wichita Falls. Tex.’s financial planner Gary Silverman formed a board with the aim of getting advice for a new business plan. He wanted to bring a recent graduate on his team, but one of the board members suggested going for someone experienced instead for revamping his initial plan.
3. Responsible for the final decision
As mentioned before, an advisory board can only have a say in financial decisions if they’re dictated to do so. Some organizations may have an advisory board that contributes in final decisions. In this case, the boards will have a say pertaining to budgets, activities and projects carried out by the organization.
Advisory boards can also raise funds, promote the organization and provide insight to the workings of the organization to future members and public. Engagement and effective communication within the board members can play a crucial role in future success.