The Care and Feeding of Advisory Boards – From the Advisor’s Perspective Part 5

It is important to take these roles seriously. I limit my
advisory board seats and carefully define the expectations on both sides. I
make sure that I am connected to the company and that it fits with my own
professional and personal strategic plans. Companies I work with have learned
that I am more likely to accept a role if peoples’ lives are improved by the
services, products or offerings of the company (for-profit, social
entrepreneurship or non-profit).

If I think the company has merit, but is not a good fit for
me personally, I may recommend and help recruit someone else for that role. I
also let them know that if things change, and I feel that my time is not being
valued or no longer believe in the company’s vision or practices, I will
resign.

I need to know whom else is on the advisory board or whom
else will be asked. Do existing members have a say about any new or replacement
members? How big is the board? Is it big enough that we aren’t imposed upon
more than is fair and still small enough that our voice is heard?

I ask how often we are expected to attend f2f meetings. How
much prep work there will be before a meeting and follow-up after those
meetings. How many time should I be expected to attend conference calls or
review documentation. How much am I expected to learn about the business
operations of the company? How do we interact, if at all, with the board of
directors or CEO?

How will my sitting on an advisory board affect my ability
to consult for or provide legal advice for a competitor or anyone else in the
same or similar space? Am I insured or indemnified for any liability resulting
from my role as an advisory board member? Am I compensated? Do I receive stock
options or equity? Is there an honorarium? A donation to my charity, in lieu of
an honorarium? Are my travel expenses covered? Are other expenses covered? Are
all members compensated equally? If not, are all aware of any unequal
compensation packages?

Is there a point person to help manage our communications or
are we on our own? Is there someone to help us navigate our way around the
company and get us information when I need it?

Bottomline, I say yes to companies and people I like. A very
high consulting fee may get my attention in the short term, but if I don’t
trust the company or management or my fellow board members, I’m gone as soon as
the contract ends. I will help a friend if I think they really need my help and
don’t waste my time. And I will devote myself to causes and NGOs who make a
difference and value my contribution.

I suspect,  others do
the same.

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