Specializes in strategy, finance, M&A and governance for private and family businesses. Experienced Corporate Director. Kona Advisors LLC.
As I look back at the many new boards I have been involved in organizing, certain lessons keep repeating. While there are nuanced differences between fiduciary and advisory boards, the basics are the same. In my experience, advisory boards tend to have a narrower scope than fiduciary boards. They mostly pertain to private, not public companies, and they are rarely responsible for regulatory issues.
If you are thinking about forming a new board, keep these lessons in mind:
Establishing a board is a process, not a quick event. Getting to the first meeting easily requires three to six months or more. This time is used to draft a charter; define qualifications, personal characteristics, experience and other factors; build a pool of competitive candidates; and run the interview process. Most processes require multiple