A 2014 study by the Canadian Business Development Bank (BDC) surveyed more than 1,000 small and medium-sized enterprises (SMEs) that found that only 6% of SMEs have access to an advisory board, but 80% said they had re-entered an advisory board. The BDC also conducted a 10-year study of your study from 2001 to 2011, which found that the annual turnover of companies with advisory boards (307 observations) was 24% higher than that of the co-ordden group (300 observations). For advisory councils, productivity also increased by 18%. BDC now encourages its 49,000 clients to use consulting bodies, with about 10% of their clients using them. A global survey conducted by the Advisory Board Architects (ABA) showed that 15% of the boards of directors of private companies did not pay remuneration, only 25% in cash, only 43% of equity and 17% of cash and equity funds. Although the survey contains data from both directors and non-fiduciary bodies, the CEO of ABA stated that most of the respondents came from advisory boards and that the breakdown of remuneration was consistent with what they saw on the advisory boards. It is interesting to note that their surveys have shown that boards that pay only equity have the least impact. This is a counterintuitive approach to the widely held belief that equity participation is the strongest focus on achieving important corporate goals. The survey also showed that the boards with the most impact were paid in cash and equity.
Advisory Boards and Boards of Directors (DDPs) are often confused. The essential distinction lies in the fiduciary duty, the legal responsibility to act in the best interests of the parties involved in the construction of specific obligations. While BOD has a responsibility to influence corporate governance, advisory boards do not. Loyalty obligations are easier requirements to provide a strategic overview of business growth. In the absence of this legal responsibility, high-level individuals are generally more likely to assume the role of board member through management. Finally, it is important to define performance targets and indicators (KPIs). It is important to develop milestones, measure results using CPPs, and exchange members when they are no longer suitable. In my interview with Bob Arciniaga, he noted his aversion to the term „Sounding Board“ and said, „There are much cheaper and simpler ways to get feedback than trying to bring together a group of consultants.