Especially in the case of MNCs, with complex business as well as difficult policy and regulatory challenges, advisory boards with experience of the local market, can not only help think through these issues, but also provide access to policymakers and policy influencers. Advisory boards can also add value to localizing the business model – products to be introduced; pricing strategy; product adaptations for the local markets; and help MNCs find the right balance between being ‘mindlessly global and helplessly local’.
Dependable Advisory Boards can provide tremendous confidence to CEOs and senior leaders at company headquarters, being an extra set of eyes and ears on the ground, providing a crucial perspective on opportunities, risks and challenges.
However, the effectiveness of an Advisory Board depends on a few critical factors like the objective of its formation, the composition, correct financial compensation as well as the commitment of the CEO and senior leaders on spending dedicated time with the board. Top executive search firms in India, like Cornerstone India, specialising in HR advisory services, can help organizations meet the three critical criteria (outlined above) for organizations interested in mining the benefits of effective advisory boards. It is not always important to stock the board with heavyweight profiles, rather the members should be chosen on the basis of their particular expertise and fit to the organization.
An important aspect of choosing an Advisory Board is financial compensation, as this is a delicate matter. While the financial compensation needs to be adequate, it should not be perceived as being too high and inappropriate. Executive search consultants in India, with experience of board consulting services, can be the right and effective conduit to design the right financial compensation model for any Advisory Board.
In addition, while Advisory Boards are strictly independent advisories, the discipline of a statutory board must be brought into play to ensure value addition to the business from such an HR investment. As they represent a significant commitment of time and energy, a good advisory board can be extremely valuable, if chosen well with the top executive search firms in India. While MNCs can definitely benefit from the expertise of a local Advisory Board, even Indian companies can use them effectively to grow market share and develop business.
At Cornerstone India, qualified talent turns to us to place them in various Advisory Board capacities. As one of the firms specialising in leadership hiring, our consultants are well equipped to meet the challenges of selecting talent that can complement and provide substantial advice to the leadership team, keeping in mind the broader interests of the company and its shareholders.