flexiblefullpage -
Currently Reading

Advisory Boards: Who is Advising You?

Advertisement
billboard -
Leadership

Advisory Boards: Who is Advising You?

You don’t have to be a big builder to have an advisory board.


By Mark Richardson, Contributing Editor May 16, 2014
This article first appeared in the CB May/June 2014 issue of Custom Builder.

Today’s business environment is much more complex compared with a few years ago. This complexity makes it that much harder to figure out what can you do to increase your knowledge base, react to great opportunities, and reduce risks and mistakes.

One approach is to get advice from others. Good counsel can come from a friend with experience, an expert, or a business consultant. It can come from your team members through a little think-tank, or it can come from an assemblage of the right advisers who are committed to your success.
 
Many years ago I was on the Andersen Windows advisory board. This experience afforded not only a great opportunity to hear the wisdom of many other remodeling leaders, but it was also a chance to study advisory models that I since have been able to duplicate for other businesses and industries. The Andersen team created a theme: “Listen, learn, respond.” This simple phrase provided a framework for the group’s alignment and their accountability to ideas and insights. The following are some tips, misconceptions, and keys to success:
 
1)  You don’t have to be a big company to have an advisory board. Structure your board to be in sync with the scale of your business. 
 
2)  Having the right board members is critical. They may or may not be your friends, however, you do want them to be committed to your success. After you take inventory of your business goals, find the right members with the right acumen or expertise (i.e., financial, sales, or legal).
 
3)  Start small. An advisory board can change over time to stay in sync with the growth of the business. I think having a minimum of three board members is fine, but no more than seven to start. As the business grows you can add a board member or two based on the obvious needs of the business and the holes in the group. For example, you may want an HR guru on the board if you feel talent, culture, and team dynamics are a priority. 
 
4)  Set the right expectations. I always like to communicate what the board is “not” as much as what it is. Expectations include how you want the board members to look at the business, their remuneration, confidentiality guidelines, time commitments, etc. Don’t over-dictate at the beginning because the board will evolve and tell you what is the best way to proceed.
 
5)  The right cadence for board interaction is important. Some boards meet twice a year and some meet four times. Some boards have conference-call meetings between meetings and some do not. Depending on the circumstances, I would encourage starting with two or three times a year and then tweaking after the first year. One of the considerations is the amount of time needed to prepare for each board meeting, which may affect the frequency of the meetings.
 
6)  Board longevity is important. A great advisory board is like a fine wine. With the right blend it gets better and more valuable over time. Do not create an advisory board if you are not committed to this concept for at least three years. The best advisory board I sit on now has been together for more than five years.
 
Going it alone in this business environment can be scary. But a great advisory board can not only give you answers and reduce your mistakes; it also can give you the confidence you need to be successful. CB
 
Mark Richardson, CR, is an author, columnist, and business growth strategist. He authored the best-selling book, “How Fit is Your Business,” as well as his latest book, “Fit to Grow.” He can be reached at mrichardson@mgrichardson.com or 301.275.0208.
 

Tags

Related Stories

Custom Builder

HUD Secretary Marcia Fudge Announces Forthcoming Resignation

U.S. Department of Housing and Urban Development Secretary Marcia Fudge has said that she intends to leave office later this month

Custom Builder

Floodproof on a Floodplain

An impressive addition to the IDEA Home series, the NEWLOOK Experience Home is a master class in engineering and creative design, with builder Michael Freiburger out-thinking an exceptionally tricky lot

Custom Builder

Why Start a Custom Building Business?

In this Taking Care of Business segment, expert coach and trainer Scott Beebe joins our host Duane Johns to talk about where custom builders could be getting off on the wrong foot

Custom Builder

3 Questions Answered About Reliable Energy in Home Construction

Energy expert Bryan Cordill makes a case for why and how propane is an answer to growing concerns about reliability and resilience in home construction 

Business

Custom Builder to Talk Color Design with Becki Owens at IBS

At this year's IBS, renowned designer Becki Owens will sit down with host James McClister, editor of Custom Builder, to discuss a variety of topics from basic color play in design to the Allura Spectrum palette, a collection of Sherwin-Williams colors curated for the benefit of pros

Business

PERC Highlights Sustainability and Efficiency at IBS with 'Clean Build Conversations'

Hear from industry standouts Matt Blashaw and Anthony Carrino at this hour-long Show Village event

Business

The Five Foundational Cornerstones

Business coach Scott Beebe shares insights into the often ignored business basics that could be the difference between long-term success and failure

Custom Builder

Start With the Why: Fundamentals of the Custom Builder Business

In our inaugural episode of Taking Care of Business, host and custom builder Duane Johns sits down with Scott Beebe, head coach and founder of My Business on Purpose, to talk vision, purpose, mission, values, and more

Business

Why AI Is Now Key to Our Trade Partner Strategy

Thompson Custom Homes Business Manager Erin Day explains how AI became a crucial part of building and maintaining successful trade partner relationships

Business

Thriving in 2024: Tips for Succeeding in an Uncertain Environment

Author and sales expert Mark Richardson shares his insights on the industry and how to rethink your approach to success in the new year

Advertisement
boombox1 -
Advertisement
boombox2 -
Advertisement
boombox3 -
Advertisement
native1 -

More in Category

Custom Builder

HUD Secretary Marcia Fudge Announces Forthcoming Resignation

U.S. Department of Housing and Urban Development Secretary Marcia Fudge has said that she intends to leave office later this month

Custom Builder

Floodproof on a Floodplain

An impressive addition to the IDEA Home series, the NEWLOOK Experience Home is a master class in engineering and creative design, with builder Michael Freiburger out-thinking an exceptionally tricky lot

boombox4 -
Custom Builder

Why Start a Custom Building Business?

In this Taking Care of Business segment, expert coach and trainer Scott Beebe joins our host Duane Johns to talk about where custom builders could be getting off on the wrong foot

Custom Builder

3 Questions Answered About Reliable Energy in Home Construction

Energy expert Bryan Cordill makes a case for why and how propane is an answer to growing concerns about reliability and resilience in home construction 

boombox4 -
Advertisement
native2 -
Advertisement
halfpage1 -