While both offer the same benefits to organizations however, there are distinct distinctions between the board of directors and an advisory board. Boards are responsible for the supervision, governance and direction of an organization. On the other hand, advisory boards can provide strategic business insights that are based on knowledge and experience. Additionally, a board of directors is bound by specific legal obligations that require them to adhere to certain rules and policies, while an advisory board is not.
Clarifying the role of a advisory board is a must when it’s first established. This will avoid confusion and ensure that an organisation gets the most benefit of its advisory board members. It also helps to minimize liability exposure for the advisory board and its members. It is essential to record the clarification, whether through a written contract, an executive resolution or a company policy.
For instance for instance, if a company is planning to establish an advisory board to help with strategic goals it is helpful to have a clear objective in mind. This could be as simple as identifying a target audience the business might find difficult to engage with or as complicated as providing business-oriented strategic insight for a specific project.
An advisory board should consist comprising a mix of people that is relevant to the organization’s purpose. This could include former volunteers, members of the board of directors or experts from outside. When selecting members organizations should consider the skills of the person, their experience in their field and the level of interest in their mission. It is also crucial to determine if the member can commit to regular meetings.
www.theirboard.com/what-it-takes-to-be-an-effective-board-member/