The Value of Advisory Boards By: Susan Hammond
In a study titled Advisory Directors published in June 2011 looking at the impact of advisory directors in public companies, the authors found:
Advisory directors possess the experience desired by CEOs in matters of strategic decision making including entrepreneurial experience, advanced degrees, and CEO-level experience.
- These advisory directors are independent board members without a principal monitoring committee responsibility but do serve on an advising committee.
- Advisory directors are associated with better strategic decisions, higher acquisition returns, shorter deal-time completion, increased and better-quality innovation and higher firm value.
If these results can be obtained by a public company there is every reason a properly assembled advisory board of a private company can obtain similar results.