When Should You Assemble an Advisory Board?

Recently a client of mine, knowing that I enjoy teaching & learning through reading, gave me an article on assembling a Board of Advisers. This is a topic many medium sized businesses should at least consider, Family-Owned and companies with unclear succession plans, especially so. Don't be lulled by our current down economy; times will change, and we need to systematically provide for our future, especially when questions surround it.

The question I'd like to put forward here is: Should we embark upon Strategic Planning (SP) before, or following, establishing the Board? When putting the Board together after SP, the Board assists and guides in the implementation of the Plan. The "what" has been decided; the "how" is what the Board addresses.

When the Board is established before SP, it will have a significant impact on new products and markets, expansion or contraction of existing ones, & even Succession Planning (SSP), depending on how it's empowered. Both the "what" & "how" are influenced by the Board. I say this because it has been my experience that SP leads to SSP, if that issue exists, which is often the case with Family-Owned businesses.

Often, within a Family-Owned Business, the direction (for future good or bad) has been set. If the business is healthy, all are comfortable, & in agreement, then the Board assembly issue can happen later, or not at all. If doubt and/or conflict regarding the future exists, then it may be time for at least a consultant, and perhaps later a Board.

The point of all this is to make a PROCESS (see 10/28/09 blog) of determining your future by considering and anticipating these issues. What worked in the past has no guarantee for the future; listen to those around you. If more experience is required, then summon the help you need.