I look forward to meeting with Paul, a good friend, and colleague, tomorrow afternoon. Paul and I have much to discuss, including my responsibility on his company’s newly created Advisory Board. The agreed-upon location is a convenient cigar bar, my preference for conducting business. I cannot meet in this venue every day, but it is a great pleasure when I can. I have been helping Paul connect with the financial community to support his company’s development goals. One of those connections suggested establishing an advisory board would be a good idea. As the common denominator in this process, they both agreed to invite me to join their Board. Naturally, I accepted.
During my career as an Executive Recruiter, many candidates expressed interest in serving on the Board of a prestigious company. Those folks were looking for paid Board seats but never considered a voluntary Advisory Board. As that type of search was not in my wheelhouse, I could not help them. After fifteen years of experience serving on Advisory Boards, I am enthusiastic about steering qualified candidates in that direction.
Large, established companies and small emerging companies form Advisory Boards to manage their businesses. Profit-oriented companies and not-for-profit associations use them. The scope of responsibilities will vary from organization to organization, depending on its size and complexity. Organizations expect Advisory Board Members to offer unbiased advice. They do not have decision-making authority or fiduciary responsibility, significantly different from a Board of Directors. Advisory Board members are chosen based on their skills, experience, and accomplishments relevant to the organization in question. To be invited to join the Advisory Board of a commercial startup, you will probably need direct experience with commercial startups. You should expect to have significant experience in the company’s industry segment. My friend and colleague, Mark McClellan, just reminded me that people with experience raising capital are in demand.
Compensation also depends on the organization’s size, complexity, and life-cycle position. Some are paid, including travel and meals, but many are uncompensated. Most of my Advisory Board roles have been voluntary and uncompensated, although our host provided food and beverage at each meeting.
Why would one become a member of an Advisory Board that does not provide compensation? It isn’t about the money, at least not immediately. As I mentioned earlier, serving on Advisory Boards has been personally gratifying. Each offered a new opportunity to gain skills and experience. They provided networking connections that led to new business opportunities. I have enjoyed giving back to the community, especially during my alum board years. That experience strengthened my relationship with the institution. If a career goal is to sit on a BOD for a prestigious company, serving on an Advisory Board is an excellent place to gain experience and credibility.
My first Advisory Board experience was with the National Alumni Association for my Alma Mater, where I served for three years. It was because of my affiliation with the Atlanta Chapter that I was nominated to join that body. The Executive Director of the Association talked to me about joining the Executive Committee, a pathway toward becoming Chairman. Regrettably, I had to decline that invitation as I was not in a position to devote the time or energy required for that responsibility. Nevertheless, my service on that Board was gratifying and a significant learning experience. I believe that serving on an Advisory Board for a not-for-profit association or a charitable organization is an ideal gateway for consideration in similar roles in the private sector. It worked for me. I gained visibility from that role which led to invitations to join profit-oriented and not-for-profit advisory boards.
Organizations need the kind of unbiased advice one can offer. Your expertise is required. You should consider joining an Advisory Board if you want to expand your skill stack, make new connections, and further enhance your career. If you are interested in becoming a member of a more prestigious, compensated Board of Directors, an Advisory Board is a possible stepping stone. A great place to start is with your College Alumni Association, an Industry Association, or a Charitable Organization. You will enjoy the experience and find gratification by giving back to your community.
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Jim Weber – Managing Partner, ITB Partners
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