Measurement – Advisory Board Best Practice Principles
The ABF101 Advisory Board Best Practice Framework™ has been carefully developed to respect and support the balance required between purpose, people and process to create a strong foundation to Advisor engagement.
The ABF101 Framework is based on five key principles –clarity of scope, independence and fit-for-purpose, measurement, structure and discipline.
Let’s explore the “Measurement” principle.
Having the clarity and confidence to set out how the impact of the Advisory Board will be measured is a benefit to the organisation and the Advisory Board members. A holistic approach can be taken to best practice evaluation of the Advisory structure to identify the value derived from the Advisory Board and its alignment to Purpose, People and Process.
Within the ABF101 Framework, the Measurement and Structure and Discipline principles underpin the Advisory Board’s PROCESS section. Within this, the Measurement principle states “The Advisory Board is measured on an ongoing basis for impact and organisational alignment.”
One example of an impact measurement tool for Advisory Boards is the Growth Score developed by the Advisory Board Centre. It can be used by organisations and Advisory Board Chairs to evaluate organisational priorities and capacity for growth. Used on an annual basis (or more frequently in time of change or volatility) the Growth Score provides an objective framework to facilitate best practice conversations regarding the Advisory Board’s impact and alignment.
The Gold Coast Innovation Hub was recently supported by the Advisory Board Centre to utilise the Growth Score tool to measure the impact of the 12 month Innovation, Advisory and Board services program. Businesses that participated in the program which included independent Advisory Boards reported improved management practices and cashflow for all participants and significant increases in profitability, including one participant that saw profits soar by 40X.
When are Organisations Starting Advisory Boards
A purpose driven Advisory Board should, by design, drive an impact for the organisation. Due to the inherent flexibility of Advisory Boards, defining the intended impact and measurement will be unique to each organisation.
The Advisory Board State of the Market Report identified that Organisations start Advisory Boards at different points of their growth journey- and for different reasons.
The ABF101 Framework provides a balanced approach to Advisory Board establishment and facilitation. It recognises the balance necessary for defining a purpose that is unique to the organisation and applying good governance of people and process.
Importance of Measurement for Organisations
- The Advisory Board has clearly articulated goals to measure performance
- The Advisory Board maintains focus
- Impact of the Advisory Board can be validated
- Impact and alignment of intent and outcomes achieved
- The Advisory Board can adapt to the organisational needs
Importance of Structure and Discipline for Advisors
- Members are clear on the priorities of the organisation
- Members stay focused
- Members can articulate and validate where they add value
- An impact measurement is conducted in the establishment phase with articulated goals for the shift in measurement
- Annual impact assessment measures the organisational result to the goals
- Re-evaluation of goals is in line with the organisational needs
- Re-evaluation of the Advisory Board and its members
What’s the next step?
A well-crafted, comprehensive Advisory Board Charter can outline the measurement elements that are tailored to the Advisory Board scope and organisational needs
Advisory Board Certified Chairs have undertaken specialised development to assist organisations to evaluate their options and develop Advisory Board protocols, including a Growth Score impact measurements that can support high performing Advisory Boards.
If you are a business and would like to tap into this and learn more about how Advisor Engagement could benefit your business, email: firstname.lastname@example.org
Interested in learning more around best practice for Advisory Boards and professional Advisors? Download your complimentary copy of the ABF101 Advisory Board Best Practice Framework™. In addition, you can gain a Micro-Credential in the Advisory Board Technical Foundations Program, which is a fully supported online program that is self-paced and can be done at any time to understand how Advisory Boards technically work, elevating your skills and lifting you in your role as an Advisor.