An advisory board provides independent advice and counsel to a company's management team without the responsibilities of a board of directors. It augments internal expertise, enhances accountability, and offers objective strategic planning. An advisory board helps make introductions, establish objectives and policies, improve senior leadership, act as an arbitrator during crises, and lend credibility. To be effective, the advisory board should be kept informed, given preparation time, trusted with significant information, and motivated while listening to management. The optimal size is four to seven members, and compensation may not be needed early on but could include per-meeting fees or options later. Personalities must be compatible and the CEO must avoid too many opinions.

1. Building a Board of Advisors Andy Forbes