The possible uses of an outside business Advisor are many and will vary depending on the needs of each Organization. If you or your Senior Leadership Team have ever considered adding a business Advisor to your talent arsenal you are not alone. However, one of the biggest factors that prevents a Leader from engaging with a trusted Advisor is their lack of experience with choosing one. There is a fear of making a bad choice.
The possible uses of an outside business Advisor are many and will vary depending on the needs of each Organization. If you or your Senior Leadership Team have ever considered adding a business Advisor to your talent arsenal you are not alone. However, one of the biggest factors that prevents a Leader from engaging with a trusted Advisor is their lack of experience with choosing one. There is a fear of making a bad choice.
1. Confidentiality always and in all ways.
Professionals who are most successful in an Advisory role are defined by their selflessness and passion for working side-by-side with a CEO or business leader who has something on their plate that their existing resources or Team Members cannot fix. Whatever that ‘something’ is, it is a private matter between the Organization and the Advisor. Your Advisor should have zero interest in taking any credit or recognition for their successes with you. Their role is to help and to solve; not to shine. Be wary of those who are anxious to add your name to a Client List as a way to market their services.
2. Define the boundaries of the relationship you desire.
Do you want an ‘on demand’ Advisor relationship that allows you to decide when and how often you engage with each other? Is it a specific project you want that has a clear start and finish to it? Does an ‘hourly’ or ‘daily’ rate make sense? While we are not suggesting that fees and fee structure are your primary decision-drivers or criteria, it may help in your planning and budget process to understand just how ‘engaged’ you expect your Advisor to be. Train wrecks are plentiful if expectations of both parties vary widely [after] engagements begin. Remember also to discuss contracts, confidentiality agreements and the terms of other sharing of public and non-public information.
3. How deep is the expertise on your particular need or topic?
A long list of references from other Client projects is not an automatic indication of an Advisors expertise. Talk with them specifically about your needs. Ask questions about their ‘process’ in helping to solve your problems or in generating new ideas with and for you.
Notice the specific emphasis on ‘you’ and ‘your’? While the knowledge and first-hand experiences that Advisors possess are extremely valuable to companies who need to fill gaps within their organization, so too is the ‘fit’ and the ‘chemistry’ between you and the Advisor you ultimately choose.
Here is an interesting take: Would you invite this Advisor into your home for dinner? A ‘yes’ or a ‘no’ to that question might indicate if you really want to spend your valuable time with this person and develop a relationship.
4. Effective communication skills.
Are you a ‘just get to the point’ kind of person? Or do you want to see and hear every single step and sideroad that leads to a recommendation or a conclusion? Neither personality type is right or wrong, better or worse. Yet it is very important to understand how you and your Advisor will be able to communicate when the time comes for real interaction. Being able to communicate your thoughts and ideas in a way that others can understand is an extremely important skill set for an Advisor and yes, as a Client.
There are also times when Advisors have to be the voice of reason or disagree with a CEO for the betterment of the Company, and in doing so they need to be logical, straightforward and well-founded with their reasons, Likewise, a Client has every right to push back and to challenge ideas and solutions brought forth by the Advisor. A healthy relationship is one where clarity and candor are expected, allowed and encouraged.
5. Effectively sets and achieves goals.
Every Advisor project must have written goals and deliverables. No exceptions; even if you feel a very high comfort level or affinity to your Advisor. Are the project goals and processes clear, measurable and time-sensitive? (Yes, that age-old formula still applies). Boards and CEOs have a lot on their plates.
What often derails their focus on one major issue is the emergence of another one that seems to be equally or more important. People change, markets change, Customers change and so do competitors. A good Advisor remains “above the fray” and steers the C-suite Team back to the path to achieving their goals.
Can goals during an Advisor Project change? Yes, they can but the original foundational metrics are the ones by which to check and assess progress.
6. About attitudes and Role models.
Who exactly can the CEO or Board Chairman turn to when they are confused, upset or notably frustrated? Displaying those emotions [inside] their organizations may be a recipe for peers, subordinates and superiors to question if the CEO is the right person for the job. Yet all human beings have these, and other emotions.
The Advisor needs to be capable of helping to shape a proper outlet and outcome for what is likely a well-founded and real passion that Leadership has for their business. Many CEOs view their Advisors as a confidant, mentor and perhaps even a role model of sorts. Do not expect that degree of ‘relationship’ on Day One with your Advisor but it is a realistic and often-achieved longer term outcome.
7. A network of peers.
No one Advisor knows everything about everything. If they did, they would be running a small country or sitting at the right hand of Popes and Presidents. What is actually quite important to you is that your Advisor has a deep well of subject-matter-experts and other seasoned individuals that they trust and use.
Advisors can and should have something else valuable to offer to every Client; access to the Advisors own networks; people or firms who might be valuable assets on your Project. At our firm we have a long-standing belief that “…somebody knows somebody who knows something…” We aggressively build relationships large and small, specific and nonspecific.
Evaluate your Advisor on this point by asking them about the [kinds of] information they can tap into that may be one-phone call away. As an added bonus, you (the Client) may end up expanding your universe of people and information as well.
8. Competition is a good thing.
Clients in search of an Advisor should interview at least (3) three possible Advisor options and then narrow that down quickly to a ‘top two’. Try to balance any more than that and you will easily get into analysis paralysis of the worst kind. Do those involved internally in your selection process all agree with one another? Are your internal selection criteria written down (like the ones in this article)?
A failure in those types of clarity may cause your best potential Advisor to simply move on because you or your selection Team cannot seem to be focused on what you want, how you want it and what exactly determines success for both of you. In fact, a good Advisor will sometimes decide that they are not the best fit for you and your needs. Somewhat ironically, that may be their way of wanting the best for you; even if it means the assignment going to another Advisor.
The ‘perfect’ Advisor probably does not exist and nor does the ‘perfect’ Client. In the end, never let ‘perfection’ get in the way of ‘good’ or ‘great’ as good outcomes and improved performance were the reasons you started looking in the first place!
Thank you for reading our “Paths and Pathways to Choosing An Outside Advisor” Learn more about us at www.newcenturypartners.com We wish you continued success!
Copyright 2023, New Century Partners, Inc.
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