What Are Advisory Board Roles and Responsibilities?

An advisory board is a collective of industry experts and thought leaders who deliver valuable insights to guide the board of directors and executive leadership. Its primary function is to provide input and recommendations that inform decisions and ensure the board aligns with organisational goals.

Purpose of an advisory board

Strategic guidance

An advisory board acts as a sounding board for its company, guiding the board of directors and executive management in making informed decisions. It acts as a neutral third party and offers non-binding advice on how to drive the company’s strategy forward.

Providing expertise

Advisory board members are subject matter experts who use their knowledge and experience to enhance decision-making processes and assist directors in overcoming industry challenges and exploring new opportunities.

Supporting organisational goals

Advisory board members always have their eye on the target, advising on critical decisions that contribute to the company’s long-term goals and mission.

Key roles of advisory board members

• Advising: Guiding directors and executives in making informed decisions that align with governance best practices based on expert analyses and industry experience.  
• Mentoring: Company leadership often looks to advisory board members as mentors, seeking guidance to navigate industry challenges and devise business strategies.  
• Networking: Advisory board members often have global connections in their respective industries, and can introduce the company to new clients, investors and top talent.
• Advocating: Advisory board members often advocate for the organisation, although this is not a formal duty. However, this promotion helps build credibility for the business in the community, shaping its public image and positioning it to attract new clients and investors.

Primary responsibilities

• Attending meetings: Participating in meeting discussions, staying updated on the company’s latest developments and sharing insights with other members.
• Offering expert advice: Providing advice regarding their respective fields to help the company navigate critical matters, such as shifting to new technology or determining buyer personas to better communicate the company’s message.
• Supporting leadership decisions: Backing up leadership decisions with expert insights and analyses of industry trends, guiding directors towards actions that align with the company’s strategy.
• Providing feedback: Offering feedback on important decisions and initiatives, helping company leadership understand how these may affect the company.
• Identifying risks and opportunities: Determining and communicating the risks associated with specific decisions, advising on ways to mitigate them and identifying opportunities for growth to ensure long-term sustainability.

Composition of an advisory board

An advisory board can comprise of any number of individuals, depending on the requirements and size of the business. This includes the chair, who is often a former CEO or executive with a deep understanding of the company’s sector of operation. In some cases there will be a co-chair to lead meetings in the chair’s absence. Other members may include external advisors from different fields, academic leaders, technical specialists, former directors, entrepreneurs and organisational representatives.

Difference between advisory board and governing boards

• Advisory boards can only offer guidance and do not have decision-making authority, whereas governing boards make binding decisions.
• Advisory boards have no fiduciary duty, whereas governing boards must uphold good governance and operate in good faith.
• Advisory boards are not liable for any outcomes, while governing boards are accountable to stakeholders for their decisions and actions.
• Advisory boards focus on specialised expertise, while governing boards focus on oversight and governance.
• Advisory board members have no legal responsibility, whereas governing board members are legally liable.