Adapting to changing needs
Your reasons for exiting or altering arrangements will vary and will possibly include:
“Unlike a board of directors, advisers can be replaced without a lot of legal headaches”
Stengel, G. (2003)
- there no longer being a need for your advisory board
- a need to transition to a formal board set up arises
- you need to replace a member(s) due to under par performance
- a change in the type of advice or skills required for your advisory board.
The more thinking and planning that goes into the exit of an advisory board or member the more effective and less stressful it will be all round. Consider developing a strategy for this.
Most advisory boards in New Zealand don’t usually transition to a formal board and your advisory board needs will be fluid. Be reassured that you are ‘not stuck with it.’
Exiting individual members
Should you need to replace an advisory board member due to under par performance, be sure to adopt and communicate a well-structured exit process with this individual. Reputations (yours and theirs) are on the line. Provide an opportunity for feedback, possibly through an exit interview and acknowledge the positive contributions each individual has made to your advisory board.
Rod Drury, CEO of Xero says ultimately its about good governance at every stage.