New Market Activity at the Bookends
The Annual Advisor Engagement and Rates Report has long been an important reference document for our members with up-to-date benchmarks and market trends. Thank you to everyone for their active participation, helping our peer community understand the evolution of the advisory board sector.
This year the report highlights aspects of the changing market and those that are mature in nature. In particular, the business sector continues to be strong and consistent in the way advisory boards are being used.
The flexible nature of advisory boards is reflected in the flexible response to how rates are represented. This year, we have seen more commentary on rate ranges. It may signal the nuanced conversations being held in the market today around the needs of organisations and the increased utilisation of project advisory boards in being “fit for purpose”.
The big movements in the market are in three key areas:
- The average portfolio has increased in size from 6 to 7.5 engagements at any given time.
- The establishment phase and advisory board of 1 activity is active. Lower charge out rates is most likely reflective of a high rate with less time for smaller organisations.
- There is a 9% increase in professionals participating in corporatized environments, and they are charging more.
“Bookend” activity is broadening out the sector in a good way. In this environment, we are busier and there is a consequence. Increased flexibility challenges us to be deeply aware of our role and clarity in engagements as relationships and needs evolve.
Ethics frameworks are not to be forgotten.
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