An increasing number of organisations are appointing advisory boards.
There are many good reasons for a company to do so. It could be to ensure it receives expert advice on emerging technology or scientific advances, or to gain insight into doing business in diverse global markets.
An advisory board may also assist a company to sell its products and services to government customers, or to provide counsel on public relations and reputation management.
Advisory boards are no substitute for statutory boards of directors. Indeed, properly constituted, advisory boards should complement and strengthen the existing board.
Equally, to be effective, advisory boards need a clear remit. The board’s objectives and terms of reference, as well as the expected time commitment, should be established from the start.
This paper, based on Odgers Berndtson’s extensive experience of helping companies to appoint advisory board members, looks at the role and contribution of advisory boards more closely.
We conclude that advisors can play an increasingly significant role in assisting companies through this period of economic uncertainty, regulatory change and intense global competition.
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By Paul Butterworth MNI, Global Head of the Maritime & Shipping Practice at Odgers Berndtson