How to create and manage an Advisory Board

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As Airbnb began to expand around the world, it faced a major challenge: its management team lacked deep knowledge of the hospitality industry. To address this, it hired Chip Conley, a veteran hotelier, as a strategic advisor .

Conley’s experience helped Airbnb navigate the complexities of the hospitality industry, transforming Airbnb’s guest experience and bridging the gap between startup agility and traditional industry standards.

That’s what a well-staffed Advisory Board is supposed to do: provide expertise where it’s needed most to drive your company forward. Let’s learn how to fine-tune an advisory board to drive growth and the right intent for your company.

What is an Advisory Board?
An advisory board is a group of external professionals who provide strategic advice and expertise to your organization's management. These individuals are typically experts in areas relevant to your company's needs, such as finance, technology, marketing, or international law.

Unlike a board of directors, an advisory board has no legal responsibilities or decision-making media directors email list authority. Its role is purely advisory, improving the strategic direction and operational effectiveness of your company.

**Also read: This is a day in the life of a CEO

Types of Advisory Boards
1. Strategic advisory boards
Sometimes called steering committees , strategic advisory boards, guide the overall strategy and long-term vision of a company. These boards focus on macro-level decisions related to project governance , company direction, growth opportunities, target market, and business direction.

Spotify created a Content Safety Advisory Board in response to growing concerns about harmful content on its platform. This strategic advisory group helped the company make informed decisions about content policies and safety measures.

2. Technical advisory boards
Technical Advisory Boards provide expertise in specific technology areas, helping start-ups and established companies overcome complex technical challenges and drive innovation.

If a car manufacturer wants to lead in car design and sustainability, they might consider hiring advisors like Franz von Holzhausen, Tesla's chief product designer, to their advisory board. His expertise in product design and experience with electric vehicles would bring enormous added value.