There are differences between a advisory board and a board of directors, even though they both bring a lot of value to an organisation. Boards are accountable to govern, control and direct an organisation. A board of advisors can offer business-oriented strategic advice that are based on their knowledge and expertise. A board of directors is bound by specific legal obligations that require them to comply with specific guidelines and rules. An advisory board, on the other hand is not.

The definition of the role of an advisory board is crucial when it’s formed. This will avoid confusion and ensure that an organisation is able to get the most value from its advisory board members. This will also help to reduce the risk of liability for the advisory board members and their families. It is a good idea to make this clear in some way, be it an agreement in writing, a resolution of the board or company policy.

It would be useful to have a plan in mind when for instance, an organization wishes to establish an advisory board to serve purposes of strategic importance. This could be something as simple as identifying an individual that an organization may not be able to work with or as complex as providing business insights for an individual project.

An advisory board should consist comprising a mix of people that is pertinent to the company’s mission. This might include past volunteers, current board of directors members or external professionals. When choosing members, the organization must consider the individual’s skill in the field, their industry expertise and degree of https://theirboard.com/whats-the-difference-between-the-board-of-directors-and-an-advisory-board/ dedication to the mission. It’s also important to find out if the member can commit to regular meetings.