ADVISORY boards have had more prominence in the past few years than in past times.
While there have been people and businesses that have provided advisory board services for many years, there are also quite a few new entrants.
From my perspective, a well-structured advisory board adds value to the agribusiness concerned. I need to declare an interest though - I sit on a couple agribusiness advisory boards, so of course I would say this.
There are lots of reasons why it may be the right course of action for some farming businesses. Another set of independent eyes is one of the main benefits. Like everything, it's not for everyone. The timing has to be right, or the agribusiness itself needs to be open to it.
Recently a friend sent me an email outlining his views on how an adviser should operate. Among other gems was this one: What is one question a competent adviser should ask? He contended it is, "Do you really know?" That is a great question. It's not intended to undermine or underplay the intelligence or knowledge of the business owner being advised. It's simply a segue into a well thought-out, comprehensive analysis, and discussion of the issue at hand.
We all have inbuilt biases. Sometimes these are difficult to put to one side. We also all have egos, and this can be even harder to abandon.
As said before, if you think you're the smartest person in every room, you have a problem, as you're probably not. And as a result an advisory board will have limited value.
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We all have our strengths and weaknesses, and identifying them is half the battle.
Being open to ideas and robust discussion is another way to get the most out of any advisory group. I think a key trait for an advisory board member is the ability to keep quiet and really listen.
Far too many people feel the need to go straight into problem-solving mode, before they understand the issue. From what I have seen over the years, they work best when you match the skills with the areas of focus for the business. It may be a blend of financial, marketing, negotiation, production, or any other specific skill set.
Additionally, an independent, effective chair is crucial to making it all come together, and getting the best out of the respective skills on the board.
How do you get the right people in the right seat in your business bus? Well, you need to be crystal clear with what you want to achieve from this group. And find the people that fit the bill.
Mostly, board members come from within existing networks, but not always. In some cases, someone with outside influences would be useful. The board does need social cohesion, but they don't have to be too close personally. It's best if they aren't.
As they say in the public service, you need someone who's willing to tell it like it is; not what you want to hear. They are there to give fearless and frank advice, and they are doing the agribusiness a disservice if they do otherwise.
- Details: bagshawagriconsulting.com.au