Crafting the ideal board for your growth company
In a recent conversation our MD and founder, Brien Keegan caught up with Henry Lynch and Sam Piane to discuss building the ideal advisory board.
Henry Lynch is the Founding Director of Faraday, a firm specialising in board advisory programs aimed at driving growth in mid-market companies. henry@faraday.company
Sam Piane is a Partner at Sprout People, specialising in placing talent in technology businesses, with a particular interest in deep-tech. Sam’s work includes placing talent at the board level, such as independent chairs for high-growth businesses, ensuring the right people are guiding growth companies. sam@sproutpeople.co
They addressed three major topics:
creating an effective advisory board
the talent challenges and opportunities,
and how boards can act as accelerators for company success.
Creating an Effective Advisory Board
Q: What does a successful advisory board look like?
Henry Lynch: A successful advisory board is purpose-driven. Unlike traditional governance boards that are often rigid and focus heavily on compliance and legalities, advisory boards are more flexible and natural for the business. They're designed to help solve current business problems rather than operate on outdated structures
Q: When is the right time to set up an advisory board?
Henry Lynch: Ideally, when the company reaches a critical growth phase—raising capital, entering new markets, or facing disruption. These moments signify a "make or break" for the business, and having the right advisory board in place at such times can offer much-needed external expertise
Sam Piane: I’d add that sooner is often better. The moment founders or leaders face challenges they don’t have the expertise for, an advisory board should come into play. It’s also critical during periods of exponential growth or significant structural changes.
Q: What roles do advisory boards typically include?
Henry Lynch: Advisory boards aren’t static; they can include a variety of roles such as project-specific advisors. These roles can come in for a short-term engagement to address specific challenges and leave once the issue is resolved. This fluidity helps companies adapt faster
Board advisors versus career builders
Q: How do you ensure that someone is the right fit for an advisory board?
Henry Lynch: The focus should be on finding people who understand the company’s strategic goals and are capable of problem-solving at the highest level. It’s crucial not to treat advisory board selection like a “beer and pizza” gathering where you only invite friends. You want professionals who can strategically contribute, not just sit around the table.
Q: What’s your view, Sam, on finding the right talent for a board?
Sam Piane: It all comes down to having a robust process. It’s tempting to rely on your network or people you know, but that limits the diversity of experience on the board. The best approach is to objectively identify the gaps in your current board and find people who can fill them, even if they are outside your usual sphere. That’s how we recently helped place an independent chair for a biotech company.
Q: Are there specific traits or competencies that stand out in a great board member?
Sam Piane: Absolutely. A good board member is someone who can push back and challenge the leadership team constructively. Founders, especially CEOs, often feel isolated, and they need someone who can be both supportive and a strategic thinker—someone who will come prepared and offer long-term, visionary advice.
Henry Lynch: Sam makes a good point. It’s important to avoid filling the board with people who are not just adding to their career. You need those with real-world experience, people who’ve built businesses, made mistakes, and learned from them.
Boards as Accelerators of Success
Q: How can an advisory board accelerate the success of a company?
Henry Lynch: Advisory boards are instrumental in ensuring businesses move forward by guiding strategic decisions and helping leadership avoid major pitfalls. A well-formed advisory board should leave the CEO energized and ready to take on the next steps. They help create "economic mobility" for the company—shifting the odds in favor of success.
Q: What’s the role of the advisory board in developing talent within a company?
Henry Lynch: It’s a learning experience for both the leadership team and the board. Effective boards act as mentors, not just overseers. They help CEOs and founders navigate the complexities of growth, particularly by sharing their experiences of scaling companies.
Sam Piane: Boards are essential for supporting founders, especially during periods of high stress. Founders often face loneliness when making big decisions, and an advisory board provides not only strategic guidance but also emotional support, which is critical for their mental well-being.
Q: What are some potential pitfalls that founders should be aware of when forming an advisory board?
Henry Lynch: One major pitfall is not having the right balance of skills and failing to recognise the board's role in highlighting organisational weaknesses. Effective boards will point out these weaknesses and guide the leadership on how to overcome them. Ignoring these insights can be detrimental to a company’s growth
Establishing and utilising an effective advisory board can significantly impact a company’s growth and success. By carefully selecting board members who offer diverse insights, strategic guidance, and experience, growth companies can overcome challenges and achieve their ambitious goals.
The right board can be a game-changer, providing mentorship, support, and the expertise needed to accelerate business success.
