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Advisory Boards: What You Need to Know and How to Start One with Annette Taber

channelWise Team • Jun 16, 2023

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Are you a business leader seeking to navigate challenges, drive growth, and make strategic decisions with confidence? 

The answer may lie in the establishment of an advisory board. These dynamic groups of experts provide valuable guidance, subject matter knowledge, and problem-solving capabilities that can transform your organization's trajectory. 


In this episode of#AsktheExpert Live, Kathryn Rose, CEO & Founder of channelWise, interviewed Annette Taber, an expert in building successful advisory boards. Read on to discover how an advisory board can catalyze your business success.


Highlights

  • Advisory boards serve as problem-solving thinking systems, providing guidance, expertise, and subject matter knowledge to address challenges companies may not have in-house.


  • Key considerations for building a successful advisory board for a startup include structure and discipline, clarity of scope, board charter, independence among advisors, and selecting advisors fit for the specific challenges and objectives.


  • Companies at different stages can benefit from forming advisory boards, with a sweet spot for formal boards typically being companies with a valuation of $15 million and above, involving paid advisors with relevant expertise.


What is the role of advisory boards?


The role of advisory boards is to serve as a problem-solving thinking system. They provide guidance, expertise, and subject matter knowledge to address challenges the company may not have in-house. Whether entering a new market, exiting a business, or engaging in a merger or acquisition, advisory boards offer the flexibility for companies to adapt and change as their needs evolve. Advisory boards are not decision-makers like governance boards, but they offer valuable insights and experience to support strategic decision-making.



How does an advisory board differ from a governance board?


Governance boards primarily focus on compliance and legal fiduciary responsibilities. They often have limited bandwidth to think strategically about the company's future. In recent trends, companies are forming formalized advisory boards to complement governance boards and offload some strategic planning and future-oriented thinking. Advisory boards provide guidance and expertise in areas such as cybersecurity, where the governance board may lack specialized knowledge. The collaboration between the two boards allows for a more comprehensive approach to decision-making and risk management.



What are the important considerations for building a successful advisory board for a startup?


Building a successful advisory board for a startup requires more intentionality than simply assembling a group of advisors. There are five key elements to consider:


  1. Structure and discipline: Many startups lack the resources to dedicate themselves to managing an advisory board effectively. Consistency in meetings and a disciplined approach to understanding the company's market state are crucial.
  2. Clarity of scope: Solving all of the company's problems with an advisory board is ineffective. It is essential to identify and focus on the primary drivers that need attention.
  3. Board charter: Developing a board charter that aligns with the scope of the advisory board is important. This charter drives the measurement of the board's success and can include assessments at the beginning and end of the year.
  4. Independence: It is advisable not to allow advisors to recommend other advisors for the board. Independence among advisors helps prevent the formation of cliques and fosters diverse perspectives.
  5. Fit for purpose: Selecting advisors who are fit for the specific challenges and objectives the startup aims to address is crucial. Bringing individuals onto the board based on their alignment with the charter and the areas the company needs to focus on is key.

Considering these five elements can greatly contribute to the success of an advisory board for a startup.



What types of companies should consider forming an advisory board?


Companies at different stages can benefit from forming an advisory board. In the early stages, informal advisory boards of volunteers, such as family, friends, and trusted individuals, are common. However, for a more formalized advisory board, which operates under the governance board, companies typically reach a certain level of maturity and valuation. 


The sweet spot for formal advisory boards is often considered to be companies with a valuation of $15 million and above. These boards involve paid advisors with extensive experience and knowledge as senior executives. It is beneficial to look for individuals with relevant certifications and expertise in specific areas. Additionally, there are alternative options, such as customer advisory boards or project-based advisory boards, that can be considered depending on the company's needs and resources. The key is determining the right approach based on the company's size, stage, and goals.



Are advisory boards considered working boards where the advisors do the actual work?


No, advisory boards are not working boards in that sense. Unlike formal governance boards, where decisions are made and executed by the company's leadership, advisory boards are thinking systems and problem solvers. They provide advice, guidance, and expertise to help the company gain confidence in decision-making processes. 


The value of an advisory board is measured through assessments such as growth score assessment and value chain assessment, which are conducted at the beginning and end of the year to evaluate the impact and value the advisory board brings to the company. The advisors do not perform the day-to-day work but offer insights and recommendations to inform the company's strategic direction.

Is it common to have project-based boards?


There has been a notable increase in project-based advisory boards, with a 52% rise since 2019, according to the advisory board center. This trend reflects that companies often lack the necessary headcount and bandwidth to focus on the future while managing day-to-day operations. 


In project-based advisory boards, the focus is on specific areas or challenges. The duration can vary, such as a three-month project to accelerate growth in a particular area. The board must understand the problem and propose solutions through board reports provided by the business before the meetings. Closing the feedback loop and reporting on the outcomes and actions taken based on advisory board input is an important aspect of the process. This ensures accountability and demonstrates the impact of the advisory board's contributions.


When setting up advisory boards, what budget range should companies consider?


The budget range typically ranges from $2,000 to $5,000 per board meeting. Board meetings usually occur once a quarter and last about four hours or half a day. This translates to an annual cost of approximately $8,000 to $20,000 per person. It is worth noting that many experienced advisors are transitioning away from traditional corporate positions and seeking alternatives. BoardSwap’s Advisors Concierge is a great example, as it provides access to a pool of advisors. However, the choice of advisors and their associated fees ultimately lies between the business and the advisors themselves.



What made you decide to join channelWise as an expert?


I joined channelWise because I recognized the value it provides in offering quick, practical, and tactical advice. Sometimes businesses have specific questions or need immediate feedback without needing long-term engagement. channelWise fills that need by providing a service where I can offer quick answers and insights. Additionally, I engage in consulting, advisory boards, and facilitate peer groups, depending on the specific needs and objectives of the company. It's about providing the right solution to address the challenges the company is facing.

Are there any final thoughts or considerations for setting up an advisory board?


An advisory board provides the confidence and expertise needed to make informed decisions and take action. It is crucial to understand the role of an advisory board, including the time required to manage it, effectively utilize the feedback received, and implement the recommendations. Ensuring alignment between the internal team and the advisory board is essential to avoid frustration and maximize the benefits of the advisory board's insights.


For more advice about advisory boards, visit Annette’s profile on channelwise. 
Check out channelwise.com to find more experts to help you with your business or career.


Note: Transcript is edited for time and clarity.

What free or low-cost tools can help me market my MSP business?

By The ChannelPro Network in Collaboration with the channelWise Team • 12 Feb, 2024
One of the biggest marketing challenges I see with managed services providers is identifying the right marketing channels and tactics. Navigating the maze of marketing tools can be a daunting task for MSPs. Here are some of my favorite tools that won’t have you digging deep into your pockets:  Interview Your Ideal Clients Have you ever thought about simply having a chat with your ideal clients? It’s a classic, cost-effective way to understand what your clients really need and want. Engaging them in interviews can unveil their preferences, needs, and challenges straight from the horse’s mouth. And it’s free. Incorporate Tools Like ChatGPT AI has been making waves in the marketing sphere, and one tool that stands out is ChatGPT. This multipurpose tool can assist with content creation, SEO optimization, email marketing support, and more. Start with a free plan, and if it meets your needs, the paid plans kick off at $20 per month. Google Analytics & Search Console For a deeper dive into your website’s performance, Google Analytics is your go-to tool. It’s a treasure trove of data, offering insights into traffic, user behavior, and the effectiveness of your marketing campaigns – all for zero cost. Alongside it, Google Search Console can be your ally in optimizing your site’s visibility on Google, also without costing a dime. Try Ubersuggest SEO is a linchpin for online visibility, and Ubersuggest is a solid, budget-friendly option for keyword research, site audits, and competitive analysis. It has a free version, but its paid plans are competitively priced starting at $29 per month or a one-time payment of $290. Shore Up on LinkedIn LinkedIn, the haven for B2B marketing, is a social media platform you shouldn’t overlook. It’s a formidable space for networking, sharing insights, and flaunting your MSP services to a professional audience. Basic usage is free, but if you fancy more features, premium plans are available at a cost. Email Marketing Despite being a veteran in the digital marketing arena, email marketing still holds its ground as a cost-effective channel. Platforms like Active Campaign, Mailerlite, Mailchimp, ConvertKit, and Aweber are notable mentions. Their pricing starts at $10 to $20 monthly. Incorporating these tools can serve as a catalyst in refining your marketing operations, understanding your audience better, and fostering a stronger connection with them without burning a hole in your pocket.

Diversity matters to me, but there isn’t a lot of it on our team. Is that going to hurt us with customers?

By The ChannelPro Network in Collaboration with channelWise • 12 Feb, 2024
Today’s customers want to see themselves reflected in the companies they support. Research has shown that a lack of diversity within teams is detrimental to business development and customer relationships, especially when your customer base is diverse.  The primary reason that diverse teams are critical to the success of client engagement is due to the unique experiences and intersectionality of the varied perspectives each team member brings to the table. This opens the door to more creativity and improved problem solving that your customers expect from you, which leads to greater customer satisfaction. Your ability to connect with customers thrives on your capacity to deliver fresh perspectives and how well you anticipate and respond to their needs. The more your team is representative of the markets they serve, the more valuable their insights become – and you can create better solutions for your client. Lack of Diversity Stifles Progress Consider the backlash experienced by big brands that create racially or culturally insensitive ads or products. Chances are no one with a varied perspective was present in strategy meetings to challenge the status quo. Perhaps you have personally experienced a client interaction where you or a peer unwittingly disregarded the position and authority of the primary decision maker based on their race, age, gender, or other misguided assumptions due to a lack of cultural competence. It happens all the time but it doesn’t have to. Diversity is less about how a person looks or where they come from; it’s more about valuing different points of view and being open to exploring new ways of thinking. It’s about integrating diversity of thought, which comes from the unique backgrounds and experiences of diverse individuals. By contrast, homogeneous teams are composed of individuals with similar backgrounds, perspectives, and experiences, which often subjects them to groupthink, blinds them to new opportunities, and hinders exploration of unconventional approaches. Thus, you’ve inadvertently stifled the very progress you aim to achieve. Create Your DEI Strategy As you plan your next client interaction or strategy meeting, ask yourself these questions: How well do we understand the unique needs, preferences, and challenges of diverse customer segments and/or buyers? Which team members’ perspectives are missing? Why are they not in the room? How can we adjust our thinking to better connect with our clients and their needs? The responses to these questions position you to address the gaps, better relate to your customers and their unique challenges, and help them innovate. A diverse team is better equipped to do just that.

We are too small for an operations manager. How do we streamline inefficient workflows with limited time?

By The ChannelPro Network in Collaboration with channelWise • 12 Feb, 2024
I see this problem all the time: You’re overworked, can’t keep up with tickets, the phone is ringing, and there is no time for anything other than fighting to keep your head above water. However, if you don’t change anything, you will never break free. Even hiring an office manager won’t help because if you haven’t taken the steps to create a business machine, they’ll end up increasing your workload rather than reducing it. So, how do you create a machine? Here are some recommendations. Focus Your Operations Start by streamlining workflows through repeatable processes, then document them as you work. The most common source of inefficiency is solving many problems for many kinds of customers. You will be spread very thin and will never catch up if you work with accountants who have issues with Thomson Reuters, QuickBooks, and Liscio; doctors who struggle with Epic; and architects who need to make Papercut and AutoCAD work. The key to mechanization is focus. Get spectacular at solving a few critical problems for very specific markets. Focus cuts work out of your process and reduces work throughout the business. Make Time to Document A lack of time is a problem for many businesses, but you don’t have time to not document. Undocumented processes take two to three times longer to complete – sometimes much more – because you figure it out each time. A lack of documentation is why hiring an office manager won’t help. One of my clients passionately resisted documentation. They were drowning in tickets, unsatisfied customers, and unfinished projects. They also suffered from a lack of sleep. Documenting the first process was hard, but now, they have 5,000 processes documented. Trailing tickets were reduced by 93%, revenue tripled, they hired a team that delivers impressive results, and they take vacations without their phones. Use Automation Tools The third piece is automation. But you cannot automate a process you haven’t defined. That creates a mess and endless work. Once you have something defined, automate it. PSAs and RMMs have self-healing scripts and scripts for common problems that can save oodles of time. Ensure you set proper thresholds so you can detect issues before they escalate. This takes out randomness. Automate ticket assignments and responses, and create canned answers for the top 50 things your techs respond to. Plus, with open APIs, compatible tools, and tools like Zapier, you can automate an almost endless list of routine office tasks: Proposal creation and delivery Follow-up processes QBR (SBR) scheduling Sending birthday cards  By incorporating these strategies, even time-strapped small companies can reduce burdensome workloads.

When should I upgrade my website?

By The ChannelPro Network in Collaboration with channelWise • 12 Feb, 2024
When you’re trying to determine if it’s time to upgrade your company’s website, it’s important to first understand if your website works for you. Is it driving leads? More importantly, are those leads turning into clients? If so, then you are probably good. But if you’re like most of the 400-plus MSPs’ websites I reviewed over the last two years, then you probably are not getting the results you should be getting. But before you go near a keyboard or mouse – or worse, hire someone to redo your site – the fundamental questions around proposition, direction, and target market need to be answered. Making the decision to rebuild a site is so much more than a design exercise. It’s an exercise in figuring out what your business is all about and where it’s headed. Think of your site as a storefront window. It’s where potential clients first encounter your brand, learn about your services, and, most importantly, decide whether they want to engage with your business. An outdated or ineffective website can have a significant impact on your ability to start those new conversations. So, when do you know it’s time for a new website? Here are some overall thoughts: Outdated Design  The visual appeal of your site plays a crucial role in attracting and retaining visitors. An outdated design can turn potential clients away. You only have one chance to make a first impression. If your site looks like it hasn’t seen an update in years, it’s probably time for a refresh. I’ve seen too many sites that look like they were designed when we were still sending faxes or are a barely customized template. It’s almost 2024. Don’t let that be yours. Ineffective Content, No SEO Your site’s content should be informative, engaging, and relevant to your target audience. It should be personal, too. It should tell stories about your business and how you’ve helped your clients. In addition, is your site getting traffic for local geographic search terms? Are you missing out on organic visitors? If SEO is non-existent. It’s time for a refresh. Low Conversion Rates If you’re getting visitors, but those contact forms are not coming through, then your calls to action aren’t doing their job. Make them clear and always sell your credibility on relevant landing pages. Talk to me if you’re not sure how to make that happen. Domain or Business Name You are what you are online. If your business can’t be found easily, change it. It’s that simple. Be unique. Be found. If you’ve noticed any of the signs flagged above, it likely is time to consider investing in a refresh.

Our Lead Engineer Says He’s Burned Out. Is There Anything I Can Do to Make Things Better?

By The ChannelPro Network in Collaboration with channelWise • 12 Feb, 2024
As a leadership and coaching expert, my primary focus is on supporting individuals who experience burnout. Burnout is especially common in high-stress roles like engineering. However, there are several steps I recommend to make things better for your lead engineer . Foster Open Communication  It’s crucial to create a safe, nonjudgmental space where your lead engineer feels comfortable discussing their burnout and its underlying causes. By actively listening and showing empathy, you can help them feel heard and understood. Manage Expectations It’s important to review their workload and expectations. Burnout often stems from an overwhelming amount of work. Take the time to assess their responsibilities and workload, and identify areas where improvements can be made. This might involve redistributing tasks, delegating when possible, or even considering hiring additional resources to lighten the load. Work/Life Balance Encouraging work/life balance is another vital aspect. Help your lead engineer establish healthy boundaries by promoting regular breaks, time off, and the ability to disconnect from work during non-working hours. Demonstrating the importance of personal time and well-being through your own actions is key. Tools and Support Providing resources and support also is crucial. Ensure your lead engineer has the necessary tools and resources to perform their job effectively. Consider offering additional training, mentoring, or coaching to enhance their skills and boost their confidence. Employee assistance programs, counseling services, or wellness initiatives can also provide valuable support. The Culture Criteria Cultivating a positive work culture is essential in preventing burnout. Encourage collaboration, recognition, and appreciation among team members. Celebrate successes, share achievements, and foster an environment where everyone supports one another. Recognizing your lead engineer’s contributions and offering regular constructive feedback will contribute to a positive work environment. Empowerment Through Autonomy Promoting autonomy and flexibility can help combat burnout. Grant your lead engineer more control over their work whenever possible. Empowering them with decision-making authority and exploring flexible work arrangements, such as remote work or flexible hours, can improve their well-being and job satisfaction. Check In Often Regularly monitoring goals and revisiting them is crucial. Check in with your lead engineer frequently to assess their progress and adjust goals as needed. Collaboratively setting realistic and achievable targets, considering their workload and well-being, will help reduce overwhelm and increase motivation. Truly Listen to Feedback Seek feedback and be open to iteration. Ask your lead engineer for their insights, challenges, and suggestions for improvement. Involve them in finding solutions and implementing changes. Continuously assessing the effectiveness of the strategies you’ve implemented and adapting as needed is key to addressing burnout successfully. By implementing these strategies and demonstrating genuine care and support, you can create a healthier work environment that fosters well-being, productivity, and job satisfaction for your lead engineer and the entire team.

How do I attract more customers to my MSP?

By The ChannelPro Network in Collaboration with channelWise • 12 Feb, 2024
There are two reasons why MSPs fail to attract prospects: Potential prospects don’t know you exist. Those who do know don’t understand that you solve a problem they have. Spending time, money, or resources on Point 1 is a waste without Point 2, so start there. The problem is that most MSPs sell something nobody wants to buy: IT services. Potential prospects have IT issues but are unaware that they are IT issues, aren’t interested in IT, and/or don’t speak tech. They don’t know how your IT services solve their problems. This leads to confusion and not buying. Overcoming Confusion So, how do you get uninterested potential customers attracted to your offerings? Answering these three questions can help you: Who is your target market? This can be a vertical, but a vertical often is too broad. So, it more likely will be a sub-part of a vertical. What problem do you solve for your target market using technology? This is an objective your target market has and a reason they can’t achieve it. They have business problems, not IT problems. How will you talk about it in their language? Use prescriptive sales: Start with the problem in their language, then accentuate the pain of the problem, present a solution, discuss the transformation, and make an offer. Without clear, tested, and optimized answers to these questions, you shouldn’t spend any money on advertising. It doesn’t work. So, answer the questions first. The good news is the answers make connecting with prospects easier. Instead of talking to everybody about something no one cares about, you speak to a specific audience about a problem vital to them. Right Place, Right Time The next step is to find prospective customers by going to where they are: Attend conferences and shows. If you solve a problem for dentists, go to dentistry conferences, not MSP conferences. Use social media. Identify 100 attractive prospects on LinkedIn, and target them with customized outreach through social media, mail, email, phone calls, and office visits. Add to the list as you close clients or eliminate someone as a prospect. If you spend money on awareness, spend money here. Network. Identify your top 250 contacts, make them aware of your target market and the problems you solve for them. Since what you do is no longer confusing, they can make introductions. Create content: Write for publications, newsletters, blogs, and whatever else you can find that your target market reads. Evolve into Marketing If you’ve answered the first three questions above and followed the next steps, you will attract customers. Once you’ve perfected your sales process, you can consider marketing. There are no silver bullets; there isn’t one thing you can do that magically works. I’ve tried it all; this is the strategy that works.
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