As professional service providers we all strive to develop a “trusted advisor” relationship with our clients. A term coined by the guru to professional service firms, David H Maister in the book titled The Trusted Advisor.
I have found as a contract CFO, advisor, and consultant that when this relationship is working at its best I get asked about everything and anything. If I can’t do whatever needs to be done I am expected to know who else might be qualified. Many times the answer is as simple as my client needs to speak with someone with the appropriate background and not hire a consultant. If this happens often enough on a variety of topics it usually suggests a carefully selected board of advisors would be beneficial.
So what are the signs your client might benefit from an advisory board? Consider these ten indicators:
- Your client calls you about anything and everything.
- Your client continues to make the same sort of mistakes because no one in management knows enough about the topic in question.
- Human resource related mistakes are happening more frequently and have potential legal ramifications i.e. bad hires, high turnover, sexual harassment issues and the like.
- The CEO or business owner is making decisions without much consideration and is often so ill-informed that corrections need to be made.
- The company is expanding either through a new product, building a larger plant or new distribution territories.
- The company continually misses key deadlines and is losing credibility in the market place…often an indication of limited or no accountability.
- The company is receiving increased complaints about the quality of their product or service.
- The company has been hit with a law suit that was preventable had external advice, besides legal, been sought.
- A key member of the senior management team has just announced their retirement or has been diagnosed with a serious medical issue.
- The CEO or business owner has announced they want to prepare to sell the business because none of their children are interested in taking over.
I am sure if you could add to the list. Let me know what you come up with.
In the meantime, as a way to continue to be that trusted advisor resource to your client, consider purchasing on their behalf a copy of the Advisory Board Kit: A Comprehensive Guide to Establishing an Advisory Board.
