At some point the CEO will need to dismiss an advisor. The hope is that it can be done graciously but… Here are five situations to anticipate:
- Becomes a competitor. In the roles & responsibilities I recommend you ask the each advisor to sign, it specifically states that this is grounds for termination. Unfortunately an advisor often resigns after they’ve acquired some of your trade-secrets. A client of mine invited a serial entrepreneur to serve. The world of social media was taking off and she was using the advisory board to review one of her strategies. He thought her idea was so good he added it to his company’s service offerings. She found out through one of her clients he tried to poach. She promptly informed him his advice was no longer needed.
- No longer relevant. During successive meetings the advisor has added little, is not prepared and no longer seems engaged. When you observe this it’s time to relieve the individual. I had a client experience this. She created a little farewell ceremony to honor the individual’s past contributions at his final meeting.
- Misses meetings. When there are only 3-4 meetings a year and they are scheduled in advance there is really no excuse short of a family emergency. After 2 consecutive meetings it’s time for the CEO and advisor to discuss if the arrangement still makes sense.
- Disruptive to meeting flow. Occasionally you will get an advisor who just can’t keep her mouth shut. They speak so often and long that the others shut down. These people need to be individual contributors. The CEO needs to have a candid but graceful conversation about how the advisor can continue to contribute. Failure to do so may cause the loss of other advisors and/or prevent the important synergy between advisors’ ideas from developing.
- CEO doesn’t follow advice. If the CEO is not following any or most of the advice received then it’s time to let go some or all of the advisors. Clearly the wrong individuals were selected or the company’s issues have changed dramatically requiring different skills and talents. This can be avoided by conducting an annual evaluation of how the advisory board collectively as well as the advisors individually are doing.
To learn how to draft advisor roles & responsibilities or conduct an evaluation consider the Advisory Board Kit: A Comprehensive Guide to Establishing an Advisory Board. You will also learn how to set-up an advisory board in 90-120 days.
