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Orthopedic companies often leverage the expertise of external advisors to provide additional perspectives and valuable insight that aid organizational growth. Establishing a formal, structured advisory board can lead to even greater benefits.
Unlike a board of directors that possesses fiduciary responsibilities, an advisory board is a group of problem solvers. Orthopedic device companies often develop boards comprising surgeons, scientists or tenured executives.
The Advisory Board Centre was established after its founder experienced success creating a board to support international expansion and then helped other companies build boards. The center has since assisted 1,200 organizations in 23 countries to establish advisory boards.
“The application of advisory boards is expanding rapidly,” said Udo Doring, Director and Chair of the Advisory Board Centre. “They are problem-solving bodies that have existed for millennia, so they aren’t new. What is new is their pervasiveness in more and more organizations as, when used correctly, they are flexible, effective and agile structures that overwhelmingly support better business outcomes.”
We spoke with Mr. Doring about the benefits of advisory boards and ways to ensure that they remain productive and agile.
Leveraging the Benefits
An advisory board empowers a company to expand its expertise. Among the benefits the Advisory Board Centre cites are uncovering new business opportunities, keeping current on market trends, raising capital, challenging existing operations and assisting in avoiding pitfalls.
About 90% of organizations that establish an advisory board see a positive impact, according to the Advisory Board Centre’s State of the Market Global Report 2021. The most common benefits are increased financial results, as well as business strategy and planning confidence.
Companies can benefit from a board no matter where they are in their life cycle. Startups often leverage them to help with fundraising and validating business models, while an established corporation might pursue independent thinking to inform their strategy.
The State of the Market Global Report noted that the top three drivers of demand for advisory boards are the need for technical problem solving, the desire to expand to a new space and market intelligence to explore new opportunities.
“There are many other benefits,” Mr. Doring said. “It depends on what an organization is looking to achieve as it relates to establishing an advisory board, but these findings have remained consistent for over five years.”
Setting a Sound Structure
Companies that seek long-term success with their advisory board must first consider its structure.
“Many organizations are tempted to jump ahead and go straight to who they should invite onto the board before they worked through the foundations of the board itself,” Mr. Doring said. “It is very important to invest time and focus into the establishment process.”
Mr. Doring recommended that companies answer the following questions: What are we trying to achieve as an organization? What are the opportunities, challenges and priorities that we are currently facing? What skill sets are we looking to leverage to address these situations?
Doing the hard work to answer these questions can move your board from mediocre to productive, Mr. Doring said.
Once you’ve established a clear charter and scope for your advisory board, you can discuss member recruitment. Of course, recruitment of board members will differ based on what type of expertise your company seeks. No matter the backgrounds or perspectives you desire, Mr. Doring said you should recruit based on competence, currency and willingness to engage — not reputation.
Further, companies that appoint a board chair who understands advisory board best practices and processes often experience greater success, Mr. Doring said. This finding is so consistent that the Advisory Board Centre offers a chair certification.
Remaining Nimble and Relevant
Once an advisory board is in place, setting an agenda based on relevant business needs is imperative. Think of it as the opportunity to address the issues that keep the executive team awake at night, Mr. Doring said.
“These can be immediate tactical issues or long-term strategic challenges and opportunities — or both,” he added. “The most effective advisory boards invest time in crafting an agenda that maximizes the impact of their meetings.”
A common mistake companies make with their advisory board is not investing the appropriate amount of time in creating an agenda that addresses the real issues and opportunities that the business currently faces, Mr. Doring said. Company executives and board chairs must be aligned on an agenda and its goals because the group will collectively engage in conversation, disagreement, strategy road-testing and idea generation.
“It’s your meeting — drive a result,” Mr. Doring said.
Additionally, companies aren’t stagnant entities. Your company’s strategic priorities and market conditions are constantly evolving. So, too, should your advisory board.
“It is crucial that an advisory board works to an annual cycle,” Mr. Doring said. “This is a foundation to best practice and ensures that the board remains fit for purpose. It includes reviewing the board charter and impact measurements and understanding how the organization has performed against its plan. A certified chair is well placed to support this process and to help set the direction for the year ahead.”
Whether a company is new or experienced with an advisory board, a foundational best practice is to deliberate on what they want.
Orthopedic companies often leverage the expertise of external advisors to provide additional perspectives and valuable insight that aid organizational growth. Establishing a formal, structured advisory board can lead to even greater benefits.
Unlike a board of directors that possesses fiduciary responsibilities, an advisory board is a group of...
Orthopedic companies often leverage the expertise of external advisors to provide additional perspectives and valuable insight that aid organizational growth. Establishing a formal, structured advisory board can lead to even greater benefits.
Unlike a board of directors that possesses fiduciary responsibilities, an advisory board is a group of problem solvers. Orthopedic device companies often develop boards comprising surgeons, scientists or tenured executives.
The Advisory Board Centre was established after its founder experienced success creating a board to support international expansion and then helped other companies build boards. The center has since assisted 1,200 organizations in 23 countries to establish advisory boards.
“The application of advisory boards is expanding rapidly,” said Udo Doring, Director and Chair of the Advisory Board Centre. “They are problem-solving bodies that have existed for millennia, so they aren’t new. What is new is their pervasiveness in more and more organizations as, when used correctly, they are flexible, effective and agile structures that overwhelmingly support better business outcomes.”
We spoke with Mr. Doring about the benefits of advisory boards and ways to ensure that they remain productive and agile.
Leveraging the Benefits
An advisory board empowers a company to expand its expertise. Among the benefits the Advisory Board Centre cites are uncovering new business opportunities, keeping current on market trends, raising capital, challenging existing operations and assisting in avoiding pitfalls.
About 90% of organizations that establish an advisory board see a positive impact, according to the Advisory Board Centre’s State of the Market Global Report 2021. The most common benefits are increased financial results, as well as business strategy and planning confidence.
Companies can benefit from a board no matter where they are in their life cycle. Startups often leverage them to help with fundraising and validating business models, while an established corporation might pursue independent thinking to inform their strategy.
The State of the Market Global Report noted that the top three drivers of demand for advisory boards are the need for technical problem solving, the desire to expand to a new space and market intelligence to explore new opportunities.
“There are many other benefits,” Mr. Doring said. “It depends on what an organization is looking to achieve as it relates to establishing an advisory board, but these findings have remained consistent for over five years.”
Setting a Sound Structure
Companies that seek long-term success with their advisory board must first consider its structure.
“Many organizations are tempted to jump ahead and go straight to who they should invite onto the board before they worked through the foundations of the board itself,” Mr. Doring said. “It is very important to invest time and focus into the establishment process.”
Mr. Doring recommended that companies answer the following questions: What are we trying to achieve as an organization? What are the opportunities, challenges and priorities that we are currently facing? What skill sets are we looking to leverage to address these situations?
Doing the hard work to answer these questions can move your board from mediocre to productive, Mr. Doring said.
Once you’ve established a clear charter and scope for your advisory board, you can discuss member recruitment. Of course, recruitment of board members will differ based on what type of expertise your company seeks. No matter the backgrounds or perspectives you desire, Mr. Doring said you should recruit based on competence, currency and willingness to engage — not reputation.
Further, companies that appoint a board chair who understands advisory board best practices and processes often experience greater success, Mr. Doring said. This finding is so consistent that the Advisory Board Centre offers a chair certification.
Remaining Nimble and Relevant
Once an advisory board is in place, setting an agenda based on relevant business needs is imperative. Think of it as the opportunity to address the issues that keep the executive team awake at night, Mr. Doring said.
“These can be immediate tactical issues or long-term strategic challenges and opportunities — or both,” he added. “The most effective advisory boards invest time in crafting an agenda that maximizes the impact of their meetings.”
A common mistake companies make with their advisory board is not investing the appropriate amount of time in creating an agenda that addresses the real issues and opportunities that the business currently faces, Mr. Doring said. Company executives and board chairs must be aligned on an agenda and its goals because the group will collectively engage in conversation, disagreement, strategy road-testing and idea generation.
“It’s your meeting — drive a result,” Mr. Doring said.
Additionally, companies aren’t stagnant entities. Your company’s strategic priorities and market conditions are constantly evolving. So, too, should your advisory board.
“It is crucial that an advisory board works to an annual cycle,” Mr. Doring said. “This is a foundation to best practice and ensures that the board remains fit for purpose. It includes reviewing the board charter and impact measurements and understanding how the organization has performed against its plan. A certified chair is well placed to support this process and to help set the direction for the year ahead.”
Whether a company is new or experienced with an advisory board, a foundational best practice is to deliberate on what they want.
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Carolyn LaWell is ORTHOWORLD's Chief Content Officer. She joined ORTHOWORLD in 2012 to oversee its editorial and industry education. She previously served in editor roles at B2B magazines and newspapers.
