How to Recognize When Your Business Needs an Advisory Board
In today’s hyper-competitive market, every business—whether a startup or an established enterprise—faces moments of challenge and opportunity. Knowing when to engage an advisory board can be pivotal. Advisory boards aren’t just about providing insights; they help you step outside your day-to-day operations and see the bigger picture. If you’re wondering whether an advisory board could add value to your business, the answer may lie in recognizing specific pain points: are you experiencing slowed growth, customer churn, or executive misalignment?
Let’s explore some signals and see if it might be time to consider bringing an advisory board on board.
1. Customer Churn and Retention Issues
If your customer retention rates are declining, it’s likely that there’s a disconnect between what your customers need and what your company is delivering. This issue is particularly costly since acquiring a new customer is more expensive than retaining an existing one. Let’s take Microsoft, for example. They have an active Customer Advisory Board (CAB) that helps them address these challenges. By engaging its CAB members in the product development process, Microsoft gathers unfiltered insights that help the company refine its offerings, address customer pain points proactively, and foster loyalty. This approach not only improves the user experience but also boosts customer retention, as customers feel valued and heard.
A well-managed CAB can offer similar benefits to any business, helping reduce churn by strengthening customer relationships and aligning offerings more closely with market needs.
2. Slowed Growth and Market Positioning Challenges
Growth can stall for all kinds of reasons, and often, the causes aren’t immediately obvious. One way to look for a resolution is by engaging with a Strategic Advisory Board (SAB). Unlike a CAB, a Strategic Advisory Board can help you dig into larger strategic problems, like discovering the “why” behind slowed growth.
Take Airbnb, for example. When the company set its sights on international expansion, it faced unique challenges in each new market. To tackle this, Airbnb brought together a Strategic Advisory Board filled with industry experts who offered insights on local market dynamics and strategic positioning. Thanks to the board’s guidance, Airbnb was able to adapt its model to different cultures and regulations, fueling its growth and positioning it as a trusted brand worldwide.
With the right advisory board, any business can gain similar insights and advice that revitalize growth and set it on the right trajectory.
3. Executive Misalignment on Strategic Priorities
Misalignment within your executive team can make or break your company’s long-term goals. This misalignment may appear subtle at first—perhaps differing opinions on product direction or budget allocation. Over time, though, it can lead to conflicting priorities, inefficiencies, and ultimately, stalled progress. An advisory board can provide a neutral ground for executives to receive advice, validate decisions, and gain alignment on what’s truly strategic, helping leaders recalibrate around shared goals. Think of them as a secret weapon with your leadership team.
4. Lagging in Innovation or Product Development
If your company is struggling to keep up with competitors in terms of innovation or product updates, an advisory board might be what you need. Product Advisory Boards or specialized Project Advisory Boards can offer valuable market perspectives and expert guidance on new product development. Advisory board members can serve as a test group for your ideas, as you’re aligning new products with customer expectations and market needs.
5. Considering a Major Strategic Move
Expansion, mergers, acquisitions, or entering a new market are exciting milestones, but they come with significant risk. During these transitions, an advisory board can provide expertise that helps clarify your path, navigate regulatory challenges, and anticipate market shifts. A great way to do that is to assemble a board of members specializing in exactly what you need. This includes adding an M&A expert if you’re considering that as part of strategy, or industry SME if expansion into a particular industry is of interest. For example, you might be considering expansion into a healthcare industry, which is highly regulated. Having a board member with healthcare experience can help you avoid potential risks. Assembling the right advisory board can help you navigate those nuances as you finalize your decision.
How Advisory Boards Address These Challenges
The value of an advisory board often lies in its diversity of thought. Here’s how advisory boards address common business challenges:
Access to Expertise and Market Insights: Advisory boards bring together individuals with a wealth of industry knowledge who can offer unbiased, experience-based perspectives.
Enhanced Strategic Planning and Executive Cohesion: With an advisory board’s insights, executives gain clarity on key priorities and decisions, ensuring that the entire team remains aligned with the company’s long-term vision.
Increased Credibility: An advisory board signals to customers, investors, and other stakeholders that the company is committed to growth, strategy, and operational excellence.
Focused Problem-Solving for Real Impact: Whether tackling customer retention, innovation, or new market entry, advisory boards target and solve specific challenges that drive measurable results.
Conclusion
Recognizing when your business needs an advisory board is about tuning into those critical moments when fresh perspectives and external expertise can elevate your strategy. Advisory boards provide more than advice—they empower you to navigate complex challenges with agility, turn customers into advocates, and seize new growth opportunities. As you assess whether an advisory board could be the right move, look at your current pain points. If you’re experiencing slowed growth, executive misalignment, or a gap in innovation, an advisory board may be the answer to driving sustainable, strategic growth.
About Boardstream
Boardstream is at the forefront of revolutionizing advisory board management by integrating decades of expertise with AI-driven technology to streamline operations. We provide tailored, cost-effective advisory board solutions, from recruitment to ongoing management, ensuring alignment with your business goals. Our strategic processes and data-backed insights help companies maximize the value of their advisory boards and drive sustainable growth.
Explore how Boardstream can elevate your decision-making with expertly managed, insightful, and efficient advisory boards. Ready to get started? Contact us today!
