How Do Advisory Boards Help Your Business Succeed?

It’s important that the members of a mastermind or peer advisory group complement one another. Many CEOs prefer to take part in a group made up of other business owners who are not from competing companies. Removing the competitive element allows for peer coaching that’s not tainted with any ill motives.

Likewise, it may be valuable to have every member be of at least comparable experience. Having one member who is still starting their first business among others decades into entrepreneurship creates imbalance. The rookie may be too intimidated and needy, and the pros may grow frustrated by constantly giving without receiving from the inexperienced member.

To receive the full benefits these groups have to offer, members must feel comfortable to open up about their real-life problems. Ask whether members sign non-disclosure agreements or adhere to some other confidentiality policy. This creates a safe forum where members won’t worry about private information being leaked or later used against them.

One of the biggest benefits of a mastermind group is that the other members can hold you accountable for actually doing what you say you will. This only works, however, if there is a method for capturing commitments.

Make sure there is a group secretary or someone responsible at each meeting for writing down each member’s commitment. It’s also helpful if the notes are shared in a group communication channel—it allows everyone to remember them between meetings and increase the chances each person follows through.

Without structure, a mastermind group can become little more than a social gathering. Shooting the breeze and catching up isn’t productive and won’t help members accomplish anything. Meetings should follow a predictable structure, typically with individual check-ins and “hot seats” to spotlight one member’s specific challenge.

There are strictly peer-to-peer masterminds where members lead and push each other without an external facilitator. Unfortunately, these groups can easily fall into disarray. Groups led by a coach, on the other hand, are more likely to find long-term success. The facilitator can create an agenda and keep meetings focused, act as a mediator to maintain a healthy group dynamic, provide tools and additional support, and remain objective because they aren’t focused on their own business.

Contribution of all members is key to a truly powerful peer advisory board. When one or a few members repeatedly fail to show up or participate in meetings, the effectiveness of the entire group is eroded. Ask what processes are in place to prevent and/or handle this scenario. Also, consider joining a group with a meaningful fee—people are less likely to slack when doing so will cost them financially.