The document discusses the evolution and increasing prevalence of advisory boards. It notes that advisory boards are becoming more common as companies seek to manage risk, identify opportunities, and build resilience in complex environments. Advisory boards provide independent expert advice on issues like sustainability, stakeholder expectations, and societal issues. The document analyzes 150 large European companies and finds that two-thirds have advisory boards, which on average consist of 7 members and meet 2-4 times per year. It identifies three common phases in the development of advisory boards: starting as internal committees, then focusing on specific issues, and ultimately evolving into mature advisory boards that address a wide range of strategic themes. Experts provide perspectives on how advisory boards can effectively influence companies when they have

1. THE
EVOLUTIONOF
ADVISORYBOARDS
Inside
Insight and analysis into the
changing role of Advisory Boards
Join us for a roundtable discussion
– see back cover
DEMOGRAPHICAND
SOCIALCHANGE
REGULATION
CONSUMER
BEHAVIOUR
TRUSTAND
REPUTATION
DIGITAL
DISRUPTION
POLITICALINSTABILITY
BRINGING
THEOUTSIDEIN...
RESOURCERISK
Produced in partnership with

2. INTRODUCTION
BRINGINGTHEOUTSIDEIN–
THEEVOLUTIONOFADVISORYBOARDS
Advisory Boards have, of course, been around for years
but here at Salterbaxter and with our colleagues at Mondo,
we started to reflect that a change seems to be taking place.
It seems as if a growing number of companies
are creating Advisory Boards and engaging
external experts to help manage risk and
identify opportunity – helping to build
resilience amidst a complex and uncertain
business landscape.
All sorts of factors seem to be in play: the
constant rise in sustainability issues is
forcing business to rethink priorities and
processes, and is challenging their comfort
zones; the demand for transparency in
business requires an understanding of the
shifting sands of stakeholder expectations
and an ‘always on’ radar; the fact that
business is on the one hand liked less by
society than ever before and yet expected to
do so much more for society than ever before;
on the more positive side, it can also be that
business is really starting to sense that there
are opportunities for commercial success
and enhanced reputation by reaching and
connecting more to society’s issues,
challenges and needs.
Or, of course, a mix of all of the above.
Nigel Salter
CEO, SALTERBAXTER
MSLGROUP
Chair/Facilitator of several
Advisory Boards
Rufus Bullough
Partner
Mondo
Danielle Brown
Partner
Mondo
Advisory Boards add value to an organisation by
providing a good sounding board, inputting into
sustainability strategy, pushing boundaries and
mapping global trends.”
Peter Bakker
President – World Business Council for Sustainable
Development (WBCSD)
Advisory Board Member – Ikea, BASF, Nespresso, P&G
McKinsey have also just published some
interesting research in this area. In ‘How to
reinvent the external affairs function’, their
data shows that companies that have ‘a very
active approach to stakeholder engagement’
are more than three times as likely to succeed
in shaping government policy and/or
regulatory decisions that could affect
their business environments.
So, we definitely see something shifting,
with businesses feeling the need to
‘bring the outside in’.
But what form is this taking and how might
it evolve in future? Will Advisory Boards
become more formal and integrated, or will
they remain agile, enabling businesses to
respond to impacts with a more dynamic
and less constrained approach.
And how will they fit in with other more formal
management structures and processes?
It’s worth noting that a few people have
expressed concerns that Advisory Boards
don’t have the legal and accountability
framework that their Non-Executive Board
peer group have. With increasing pressure on
governance and transparency there is a need
to balance the rigour of formal processes,
with the flexibility of deeper independent
insight, provided by external experts.
Our research points to three phases in
the journey to Advisory Board maturity.
Although it’s also worth emphasising that
every business approaches this slightly
differently, with different issues and
different objectives. To help demonstrate
this we also have fascinating insight from
a few companies who actively use Advisory
Boards to good effect.
But this is really just the start of what
is likely to be an ongoing discussion.
So please see details of our first roundtable
discussion on this subject on the back
cover. We look forward to opening up the
debate a little more.
–– Advisory Boards are an external panel of
thematic and issue experts
–– They meet collectively and advise the CEO
and senior leadership about potential
risks and opportunities material to the
organisation, their stakeholders and how to
translate these impacts into practical
strategy
–– Advisory Boards provide an independent,
credible lens of insight, evidence and
assurance to filter risk, build resilience
and identify emerging opportunities
–– Advisory Boards are positioned alongside
the Non-Executive Directors (NEDs). NEDs
focus on corporate governance, Advisory
Boards focus on themes, impacts and
issues material to the business
–– Impacts can range from technology, health,
demography to urbanisation and the
environment
–– The value exists in the blend and collision of
disciplines. The Advisory Board provides
the first line of defence against the myriad
issues an organisation faces, before they
make an impact, often highlighting new
information significant to the business
–– Advisory Boards offer visible evidence that
the organisation is committed to engaging
with experts who represent relevant issues,
building dialogue and confidence with key
stakeholders
–– They are ‘critical friends’ who can challenge
and advise. All within an environment that
allows strategy to be tested and
challenged, prior to launching major
commitments, communications and
investment decisions
What are they?

3. RESEARCH/FINDINGS
We have examined a collection of the largest publicly listed
European businesses across 10 sectors for evidence-based
insights on the context surrounding Advisory Boards.
WHATWELEARNANALYSING
THEEUROPEANFT150
Composition
Whilst we accept there are exceptions to
the rule, the governance structure of an
Advisory Board is typically composed of:
Chair
–– Senior leadership representative,
often the Chief Executive Officer
Executive Committee
–– Corporate Affairs Director and a relevant
representation from the Executive
Committee, depending on impacts
under scrutiny
Facilitator
–– An independent external consultant,
ensuring structure and flow in
disseminating insight into strategy
Advisory Board members are typically
assembled from the following:
–– Corporates
–– Industry and Consumer Associations
–– Non-Governmental Organisations
–– Social Enterprise
–– Thought leaders
–– Academics
–– Regulators/Legislators
Size
Our analysis showed that the smallest
Advisory Board was made up of just four
individuals, the largest of 13, and an average
size across the 10 sectors of 7.2 members.
Frequency
In terms of frequency of meetings, we found
that Advisory Boards met on average 2-4
times per year.
Triggers
From our analysis we can deduce that there
are a multitude of reasons to trigger the
assembly of an Advisory Board. These can
be summarised (in no particular order):
Business model and/or digital disruption
–– An ‘Uber’ moment
Reputational management
–– Pre and post crisis
• Economic/Social/Environmental
• Sector specific
–– NGO pressure
Competition
–– Fear of a competitor taking the lead
and missing an opportunity
Growing Trend
Our research identified that two in three
(66%) of surveyed companies had an Advisory
Board, the majority being created in the last
five years. Companies are not obligated to
disclose information about Advisory Boards,
so we expect their prevalence to be even
higher.
Underlying Sector Issues
Our research indicates overarching issues
spanning all sectors. There are also particular
regional interests such as Africa for AXA and
Brazil for Danone. That being said, there are
material issues according to sector, and our
findings suggest the following connections:
Food – health, nutrition,
agriculture, food security
Beverage – water,
development, climate
change, sustainability
Retail – labour, equality,
human rights, circular
economy
Energy – policy, regulation,
low-carbon economy,
clean tech
Financial – economic
reform, financial inclusion,
cyber security, digital
disruption
Insurance – demography,
health, climate change,
consumer protection
Pharmaceuticals – health,
social enterprise,
environment, regulation
Chemicals – innovation,
technology, sustainability,
resource risk
Transport – environment,
technology, ethics,
urbanisation
Technology – technological
inclusion, cyber security,
behaviour change and
innovation
Influential Factors
Macroeconomics:
Our analysis demonstrates that there are
two significant prevailing themes that have
impacted the formation of Advisory Boards.
The challenges that the financial crisis has
imposed on the global economy, and the
speed of interconnectivity, have morphed
the business landscape meaning it has
become more uncertain and volatile,
prompting organisations to create risk
mitigation tools and build resilience.
Paradigms:
The increasing development of Advisory
Boards globally illustrates the rise in senior
stakeholder engagement and inherently
inward-looking Boards to look outward.
Advisory Boards play a critical role in
affording businesses a level of trusted,
credible and independent perspective
that they themselves cannot attribute.
Phases of Maturity
The complexity and uniqueness of individual
businesses, and their operating environment,
mean that there are many permutations of
‘Advisory Boards’. Our research indicates a
number of transitional stages until a mature
Advisory Board is established:
Phase I: Internal Committee
We often see organisations developing
capability from within, by creating internal
steering committees, often to support
individuals in the executive roles with a focus
on key issues and impacts of importance
to the business. Although beneficial, such
groups are typically limited in their ability
to provide unbiased, external expert opinion.
They illustrate an appetite for insight,
however feedback suggests that internal
viewpoints can be limited in the context
of perspective and best practice.
Phase II: Issue-led Panels
Organisations are increasingly creating
panels of external experts to advise around
specific issues. These issues are typically
operationally led and relevant to the specific
sector and business group. For example,
H&M has one focused on supply chain and
Nestlé has one focused on coffee. These
panels are useful in creating a group of
experts addressing and advising on specific
areas. They act strategically, but have
a clear mandate around one or two very
specific areas, thus advising the business
effectively on a smaller range of topics.
Phase III: Advisory Board
The most progressive organisations are
creating an Advisory Board of independent
experts each addressing themes and issues
material to their business. The board will
bring external independent advice to the
organisation which will strategically inform
the business both from a risk mitigation and
resilience side, to the business opportunity
and competitor advantage. It is not only the
independent expertise that informs, but
the experience of when these megatrends
and issues collide. These can range widely
from digital disruption and business model
transformation to migration and health.

4. EXTERNAL PERSPECTIVES
PROFESSIONALSVIEWSON
THEROLEANDEFFICACYOF
ADVISORYBOARDS
Dave Pearson
Chief Sustainability Officer
Deloitte Touche Tohmatsu Limited
Amy Fuller
Senior Managing Director, Global Brand
Deloitte Touche Tohmatsu Limited
table by simply leveraging its global
network, the group will be enhanced, when
needed, by a fully external perspective
from outside luminaries such as academics
or economists.
The SIAC is almost 12 months old, with a
plan to meet upwards of eight times per
year. But the impact is already being felt,
as Dave explains:
“It has been remarkable how quickly the
SIAC’s focus and agenda have evolved and
how much impact it has had in terms of
helping us to prioritise our activities and
rethink some of the societal impact
programmes we are trying to develop”.
Amy reinforces this: “The most striking
thing for me was just how quickly the SIAC
broadened our thinking on social impact,
helping draw connections between the
core of the business and social impact
programmes and finding unexpected
allegiances across geographies.”
Dave explains that the connection to the
business is also quite concrete. “The
insights we gain drive change quickly. Our
global network of corporate responsibility
leaders has benefited from the knowledge
and insights that the SIAC provides, and this
changes the focus of activity on the ground.
“In one instance we were providing an
update on our largest project – focusing
on the economic integration of refugees in
Europe – when one of our leaders from Asia
thought the project was so powerful that
he immediately asked how his member firm
could support it. It was a great response
(‘We want to help too! How can we help?’)
and Deloitte Global has already engaged
with them to look at how they can best
strengthen the efforts in Europe.
“On another occasion a senior leader
from Africa was outlining his member
firm’s efforts around women’s rights and
inequality. Immediately others throughout
the global network chimed in with examples
of their own and a demand to better
understand the great work we are achieving
worldwide in this area.”
The seniority and credibility of the people
on the SIAC is the key to its efficacy. It is, as
Amy says, “astonishing to see the level of
engagement and thinking, and amount of
knowledge gathered in one room around
these issues. The fact that the Global
Chairman presides over the SIAC, leads the
follow-up actions and personally takes the
lead in sharing the knowledge with others,
reinforces the mandate and the importance
of making an impact that matters.”
So the Deloitte model may be slightly
different because of the unique Deloitte
network structure, but the lessons learned
and the benefits that this sort of body can
deliver are still highly relevant.
Deloitte refers to one or more of Deloitte Touche Tohmatsu
Limited, a UK private company limited by guarantee
(“DTTL”), its network of member firms, and their related
entities. DTTL and each of its member firms are legally
separate and independent entities. DTTL (also referred to
as Deloitte Global”) does not provide services to clients.
Please see www.deloitte.com/about to learn more about
our global network of member firms.
This first session of AXA’s Advisory Board
exceeded my expectations. We came away
not only with some thought-provoking
insights but also a list of relevant action
items for us to take back to the business.
Expectations are high for our next session,
but I have no doubt the panellists will
continue to deftly push us farther in our
journey to provide even more ‘shared
value’ to society.”
Henri de Castries
Chairman and CEO
AXA
Advisory Boards fail when they don’t
have good, diverse representation; they
are not able to influence at senior level;
they do not have a clear remit; they are
not supported by relevant employees;
they don’t have a good Chair or leader.”
Julie McEver
Head of Investment & Social Enterprise
Local Partnerships
Advisory Board panel member of Lloyds Banking Group
When Advisory Boards work well, they
can be helpful. But their presence
should never be allowed to dilute the
responsibility and accountability of the
Board or to undermine the relationship
with the executive.”
Richard Sheath
Co-founder & Director
Independent Audit
A couple of notes of caution:
Given Deloitte’s business model, the
approach it takes for its global Societal
Impact Advisory Council (SIAC), isn’t quite
in the same mould as some external
advisory boards. But the drivers, objectives,
principles and insights for Deloitte’s council
are directly comparable to that of many
other businesses.
We spoke with Amy Fuller, Senior Managing
Director, Global Brand and David Pearson,
Chief Sustainability Officer to find out about
their approach and the impact it delivers.
In recent years, Deloitte has devoted
significant time and thought on how best
to live out its global purpose of ‘making an
impact that matters’. There are no shortage
of examples of the organisation engaging,
powerfully, with some of the world’s
toughest issues, but the question was
how to best leverage the good work and
commitment across so many local, regional
and global programmes. In order to better
understand how to deliver this impact
effectively in all parts of the world, Amy
and Dave felt the need to broaden their
engagement with the appropriate Deloitte
business leaders and stakeholders. A new
level and style of outreach allows global
leadership to better understand the issues
that matter most in different places and
how to generate attention at the top of the
organisation, among those leaders who are
often charged with telling the Deloitte story.
Hence, the Societal Impact Advisory Council
was formed. Chaired by the Deloitte Global
Chairman, the group consists of senior
leaders and subject matter specialists
from within the Deloitte network, selected
to represent a broad range of insight and
geographies. While Deloitte is able to bring
considerable diversity of thought to the

5. AT A GLANCE
7.2Average members on
an Advisory Board
Janet Voûte
Former Vice President,
Global Head of Public Affairs
The role of the Advisory Board is certain to
gain importance in the future. As companies
embrace the need to deliver both financial
and societal returns, and as Stock
Exchanges increasingly require both
financial and non-financial reporting, the
importance of expertise in specific social
issues is set to increase. The Nestlé
Creating Shared Value Council, that I had
the privilege to chair, serves just such an
advisory role and is comprised of experts
in nutrition, water, rural development,
sustainability and corporate strategy.
We will see more and more companies
setting up such advisory councils to advise
on issues of long-term sustainability.
JANETVOÛTEONTHEFUTURE
DIRECTIONOFADVISORYBOARDS...
SUMMARY
INAFASTCHANGINGWORLD,
FAILURETOBUILDRESILIENCE
LEAVESORGANISATIONS
VULNERABLEANDEXPOSED.
WHATOURRESEARCHHAS
INDICATEDISTHATTHEMOST
DILIGENTORGANISATIONS
AREUSINGADVISORYBOARDS
TOFILTERRISKANDIDENTIFY
EMERGINGOPPORTUNITIES.
The overall direction of travel seems to
be getting clearer. But, every organisation
needs to adopt a tailored approach fitting
specific needs.
66%
Of surveyed
companies have an
Advisory Board
2TO4Frequency of Advisory Board
meetings per year
5YEARS
The majority of
Advisory Boards
created in the last
5 years

6. About Salterbaxter
We help businesses and brands step
up to the challenge of the changing
relationship between business and
society. We combine smart strategy,
sharp insights and creativity to help
purpose-led businesses succeed.
Whether it’s communicating to
investors or opinion formers, engaging
employees or changing consumer
behaviour, our work delivers for our
clients in three key dimensions:
1. Purpose
Creating, defining, understanding and
building more purposeful organisations,
strategies, brands and communications.
2. Performance
Strategies to drive better performance
and communications to make this
performance transparent and trusted.
3. Transformation
Helping businesses and brands to
reinvent, find new models and drive
the changes needed to fulfil the new
contract between business and society.
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CONTACT US:
Samuel Griffin-Flynn | Business Development
samuel.griffin-flynn@salterbaxter.com
Rufus Bullough | Partner, Mondo
rufus.bullough@mondoexecutivesearch.com
Danielle Brown | Partner, Mondo
danielle.brown@mondoexecutivesearch.com
HOSTS: Nigel Salter, CEO – Salterbaxter
Rufus Bullough, Partner – Mondo
Danielle Brown, Partner – Mondo
DATE: Friday 7 October 2016
TIME: 8.30am – 10.30am
WHERE: Salterbaxter, 82 Baker Street
London W1U 6AE
To reserve your seat please RSVP:
Samuel Griffin-Flynn samuel.griffin-flynn@salterbaxtercom
About Mondo
Mondo is an international
executive search consultancy.
We create Advisory Boards.
Our research capability gives us access
to the best individuals. Our expertise
and experience is in blending these
individuals into modern, dynamic
Advisory Boards.
We also support the Corporate Affairs,
Communications and Sustainability
functions with executive search services.
SALTERBAXTER MSLGROUP
82 Baker Street
London
W1U 6AE
Tel +44 (0)20 7229 5720
www.salterbaxter.com
@salterbaxterMSL
Executive Search | Advisory Boards | Benchmarking
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