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Advisory Boards Prove Beneficial for Growth

One of the key elements of business success is the ability to change. However, it is often hard to figure out why, what and how to change without any outside ideas. That is why many companies in the design and construction industry have formed advisory boards. Whether formal or informal, an advisory board can help you think outside the box and eliminate having to make the same mistakes others have in their own companies.

Unlike corporate boards, advisory boards have no fiduciary responsibility and their advice is non-binding. Separate from a shareholder or investor board, an advisory board can provide you with direction that isn't necessarily tied to the bottom-line and their stake in things. Rather, an advisory board can provide outside guidance on key issues that affect your business related to marketing, sales, staffing, succession planning and much more.

David Rosenberg, President of Hycrete Technologies, LLC, manufacturer of the Hycrete™ Admixture -- a hydrophobic concrete admixture developed in response to industry demand for a low addition rate, environmentally-friendly hydrophobic concrete additive - created an advisory board simply to bring more experience to the company. Although Hycrete Technologies' history is rich with technological breakthroughs and innovation, including several products used by NASA and the Department of Defense, the company was formed to further the application of Hycrete product technology as the leading solution in preventing rebar corrosion and extension of the cosmetic and structural life of concrete and cementitious products through moisture blocking. Today, Hycrete Technologies specializes in products for the concrete industry. Seeking feedback from key industry stakeholders about how to grow, he hand-picked a board comprised from a variety of markets in the concrete industry including repair, parking, technical products and more.

"I am pleased with the objective, seasoned opinions and willingness to help from the members of our advisory board," said Rosenberg. "People in the concrete industry want to help others so that the industry as a whole can be successful and improve."

Jim Joyce, President of H.R. Gray -- a management and consulting firm serving the construction industry exclusively for public projects - also benefits from key advisors.

"I decided to form an advisory board because we did not have any in-house experience in operating a company, but we are very experienced in the work we obtain," said Joyce. "I felt it was important to learn from others rather than repeat mistakes that may already have been made by others. I also wanted to structure our financial reporting to look like what other businesses were doing and what the financial marketplace was used to looking at."

To assemble his board, Joyce contacted his local business publication and relied upon their database of people interested in serving on advisory boards. He reviewed and selected candidates based upon their personal experience and familiarity with the industry. Although it took eight months to assemble the right players, Joyce said they now have a chair with strong CEO skills, a CPA with a strong construction background and a political consultant/lobbyist with a strong understanding of public works/contracting practices. Joyce suggests that you don't select members with the same skill set.

"It helps to have a perspective different from one another," he said, "and I think it provides a more complete review. Subcontractors, suppliers and clients can give valuable insight because they see many firms in the same position as your own and can give you a best of the best/best practice viewpoint."

While some advisory boards are hands-on, meeting monthly or more, many advisory boards come together to meet only a few times a year. Still other companies operate with advisory boards that never meet, rather, the president of the company has a listing of go-to people to test ideas on. Such is the case for Hardwire, LLC.

Founded in 2002, Hardwire is a privately-held company that produces high-tensile steel reinforcements for the broad composites industries, and also manufactures infrastructure armor to protect critical domestic facilities and infrastructure. Hardwire® products, often combined with concrete, can be found in blast-resistant structures, reinforced and corrosion-resistant flooring overlays, concrete repair retrofits, reinforced piping, and many other applications. George C. Tunis III, Chairman & CEO of Hardwire, LLC, has an extensive network of advisors from whom he calls upon and strongly encourages members of the industry to interact more as everyone benefits.

"I think the key to really high caliber advisors is to never waste their time with meetings that may cross too many lines of expertise," said Tunis. "Instead, focus your advisors' time by always keeping them up-to-speed with frequent updates or calls, and call on them when their expertise applies and the subject fits their passion or business interests. The best advice comes when the subject benefits both parties, even when there is not an immediate business fit. Then, be sure to say thank you in the most personal and appropriate way."

He continued to state that the difference between a formal advisory board and constant, continuous networking with a circuit of trusted, capable individuals is simply format.

"Some people are just more comfortable with the structure of an advisory board, while I, like most entrepreneurs, are just too impatient to wait for a regularly scheduled meeting," said Tunis. "And more important, when it comes to protecting soldiers overseas with Hardwire's ballistic- and frag-resistant panels, or developing lighter and more effective vehicle armor, time is critical. Our outside advisors bring a ton of real world experience to the solutions we develop, for which we are grateful."

Assembling Your Board
Key to success in selecting your board is assembling a group of business owners or executives whom you respect as you are more likely to listen to their ideas. Also do your best to pick companies with complimentary services or products. Not only does such a grouping provide a chance for interaction and leads among the members of your board, but a group of competitors will likely be tight-lipped.

Although advisory boards are typically unpaid positions, compensating the members in some fashion is appreciated - whether through in-kind service, gift certificates or even leads. Also be cognizant that while their greatest gift may appear on the surface to be their ideas, the greatest gift from the advisory board members is really their time. As such, it is crucial that you establish an agenda, provide ample background information and run a structured meeting. Same goes for an informal group of people you call upon. Even if you are simply running an idea by them on the phone, be fair to their time, try to schedule the conversation and give them a chance to think about the topic before you talk.

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