Advisory Board

CONCEPT

An Advisory Board advises the management of an organization by providing non-binding but informed guidance.  Unlike the Board of Directors it has no voting rights nor does it have any fiduciary responsibility. Its role is that of providing opinion, by request, on a particular aspect of the business. These aspects are in general related to products, marketing, distribution or general management. It complements main board by providing specialists experience, knowledge and contacts.

A public company (with shares traded in a stock exchange), by law, is governed as follows:

Shareholders are responsible for electing the Board of Directors and for approving the accounts;
The Board of Directors is responsible for choosing the Executive Board and jointly they form the Company’s management
The Executive Board is responsible for the execution of the strategy and action plan
The Advisory Board is a technical body created with the objective of providing advice for the Company’s management


The Advisory Board, in the case of a privately owned company, has the role of advising the Company’s management. Management includes the shareholders with direct supervision over the business and managers. Its role is to provide opinion, by consultation, in respect to questions related to the company’s policies and directives and any other relevant issues. Examples of these issues are: budget and plans; strategic planning; financial planning and dividends policy; and investments and financing deals that the company intends to be engaged.

Multinational firms make use of an Advisory Board to bring knowledgeable people on specifics issues/disciplines which act as advisors to a Division President, a Regional CEO, or a Board Member responsible for a subsidiary.



ADVANTAGES

Advantages of using an Advisory Board are: “Outside” vision (laterality); Independence (intellectual honesty); experience (tracking record), expertise (in-depth knowledge); objectivity (covering the issue of the moment); and relationships (local understanding).

The effectiveness of an Advisory Board depends on:

1) Experience, wisdom and expertise of the advisor(s);
2) Clarity on the mandate (objective) fixed by the Company’s management;
3) Periodical communication; and
4) Commitment from the side of the advisor and of the company.

 


OUR SERVICES

We offer the services of Advisory Board in the Distribution dimension: Retail and Cash & Carry Wholesale. These services include, but are not limited to: Specialist vision (input); Second opinion; Specialized consultation; Participation in face-to-face or conference call meetings; Lectures (retail, finance, negotiation and Doing Business in Brazil).

Our knowledge covers how retailers and wholesalers purchase (select, introduce and manage suppliers) and negotiate, how they price and how they promote products. We have a deep knowledge on the existing market players and industry trends. Furthermore, our knowledge encompasses disciplines such as finance, commercial, IT, Logistics and General Management.

We help in the set-up of an Advisory Board and/or we provide, via our firm, experienced professionals to act as an Advisory Board. We offer our Advisory Board services via our partners and associates.