Organizations all over the world are looking for innovative ways to stay competitive. One of the most promising solutions is incorporating the help of advisory boards and consultants. As experts who can bring fresh ideas to the table, these ideas can open new doors for organizations. But how do they differ from each other? Here are five crucial takeaways for organizations using advisory boards and consultants.
First of all, they offer different kinds of advice. Advisory boards really act more as advisers, wondering through ideas and concepts, rather than offering strategic advice on how to approach a problem or spur growth. On the other hand, consultants are employed to provide specific guidance and actionable solutions. Their counsel can help make decisions on the spot and to jumpstart initiatives.
Secondly, these two can be employed in different capacities. Organizations can turn to advisory boards for strategic decisions, while consultants are primarily hired to improve performance or execute a process. Organizations should ask themselves this question: What kind of assistance are they looking for and how can the solutions best be applied in this situation?
Thirdly, consulting and advisory services require different commitments. An advisory board works more gradually to help develop a long-term plan and can act as a brainstorming hub on an ongoing basis. Consultants, on the other hand, are typically employed on a week-by-week or month-by-month basis and conclude their task in a shorter period of time.
Fourthly, advisory boards and consultants may differ in their cost structure. Usually, advisory boards work on a retainer basis with a set payment structure, while consultants are more likely to charge an hourly fee with tasks allocated to specific budgets.
Lastly, some consultants may offer advisory board-like activities. However, it is not always appropriate to put all the eggs into one basket; it is important to maintain a balance between the two, in order to get the most out of your investments.
Advisory Boards for Strategic Planning
When it comes to developing strategic plans for organizations, advisory boards provide a platform for brainstorming ideas and problem solving. Along with knowledge and experience, advisory board members also bring their own perspectives to the table, which can help to create innovative plans.
If an organization is looking to expand business operations or ready to introduce new products and services, the advice of a trusted group of professionals with different backgrounds can prove invaluable. Such advisory boards can help narrow in on the scope of growth and map out different options to make it happen in the best possible manner.
When an organization is stuck in a rut and not sure how to break out of it, an advisory board can help in charting out a plan. This can help in gaining insights from cognitive diversity of different advisers, instead of trying to find the one answer to the problem.
Engaging with the right advisory board can help in crafting a successful strategic plan. But it is equally important to ensure that all engaging members are well selected, to ensure maximum efficiency and relevance of the board.
Having the right people to guide and suggest strategies is crucial for organizational growth. When organizations put the devoted time and resources to choose wisely, the results can be strategic planning with a bang!
Making the Most Out of ConsultantsHiring a consultant can help organizations generate actionable steps and quickly implement strategies. Whether it’s for a company-wide initiative or individual tasks, experts can quickly analyze the situation, offer solutions, and support implementation.
Consultants can be engaged for several purposes, including assessment of a problem, providing a "gap" analysis, and drafting a rigorous action plan. Organization leaders can embed consultants in the workplace, or in some cases, engage them on a remote basis.
Organizations may also leverage consultants for project-based initiatives. This includes audits, operational reviews, process improvement, customer feedback analysis, and so on. With prior experience in the domain, consultants typically know what steps need to be taken to analyze the situation and offer effective solutions.
Importantly, organizations should take care that the project goals, the timeline, and the budget are finalized before the team is hired. This ensures that the team has a clear vision and knows exactly what is expected of them in the complete project.
On a different note, organizations should also be aware of when to use the service of a consultant and when they can bring the work in-house. While consultants can be a great asset for some initiatives, there might be times when taking a DIY approach is better in other cases. Organizations should take the time to evaluate the differences and determine what is best for their particular situation.
The Delicate Balance
Given both practitioners can be extremely valuable, organizations must strike a delicate balance between the two. That balance begins with recognizing that both are important and serves a different purpose.
If you focus on one and not the other, it can take away potential opportunities to use their expertise to solve a problem. When organizations understand the overlap between advisory boards and consultants and know how to use both, it helps to ensure more effective decision-making.
Organizations should also recognize that these professionals should not be communicating with each other. As entities offering different services, it is best to keep the conversations limited between the organization’s staff and the two separate entities — advisory boards and consultants.
Advisory boards should not be involved in the day-to-day operations, while consultants should focus primarily on providing actionable solutions rather than long-term plans. When both services are separated and then leaned on in appropriate manner, it can ensure that organizations are making the most of their beneficial relationship.
Effective Communication
In the end, organizations should strive to create an effective atmosphere for communication with both parties — advisory boards and consultants. This involves continuously working on understanding and managing the expectations of each.
Being on the same page helps to reduce misunderstandings and keeps all information on the same page. This also eliminates the need for misunderstanding or open conflicts and the doubt that such errors could bring.
Organizations should focus on creating a steady flow of communication between the three parties so that the intentions are clear. Creating regular feedback sessions and asking for regular reviews can also help to ensure that everyone is on the same page and their expectations are being met.
That said, the responsibility for successful communication and the effectiveness of the works lies both in the advisory board members and the organization. With clear communication in place, and clear expectations, organizations can ensure that the advisory board and consultant they hired is adding value to the organization.
Compensating Advisory Board and Consultants Fairly
Whether it’s an advisory board or a consultancy firm, they need to be fairly compensated for their services. That said, organizations should carefully determine the market rate and ensure that it is fair for the consultant or advisory board they are engaging.
Organizations should also consider the amount of time and effort they are putting in. This helps to ensure that the amount paid is well balanced with the estimated hours of work needed. Appropriate compensation also adds a sense of commitment to the advisory board or consultant employed by the organization.
Organizations can also capitalize on non-monetary offers. Reward and recognition can be used for specific milestones and achievements, too. Such incentives can foster goodwill and bring further loyalty from the professional.
Ultimately, the goal is to create a win-win situation. It is not just important to recognize the value that these crucial entities bring to the table, but also to recognize the commitment and dedication called for in order to. After all, it is through such commitment that organizations grow and scale up their business.