Advisory Panels secret ingredient for regional success.

Running a business is a lonely job. 

 

In a country that is increasingly city-centric, running a regional business is even lonelier.

Regional business is tough business in Australia.

The unofficial source of much trusted advice in the regions is friends, family, industry, accountant, lawyer and other business owners.  This type of ‘buddy’ system has good intentions and is seen as a ‘safe’ environment for getting feedback; but it is very limited in terms of effectiveness.

It is often the case that these people do not understand the business.  Forming an opinion about the direction of the business is difficult, because each piece of advice takes precedence on a different day in the mind of the owner / operator.

As-far-as many other owner / operators are concerned, ‘no one knows the business like we do’ and they are not seeking any help at all.

What are others doing to get ahead of the game?

Some of the best product innovations, business models and marketing initiatives to come out of regional Australia in recent times, are from organisations that have formed Advisory Panels.

An Advisory Panel is a small group of independent mentors that use their complimentary skills and experience to provide advice on the strategic direction of the business.  These people do not have formal authority to make decisions on behalf of the organisation.  The structure is informal and flexible.

Advisory Panels allow owners and operators to step away from day-to-day management issues and focus on the growth and development of the business, using a forum that challenges critical thinking.

Doings things right will always be important.  True value for a regional business is created when the owner / operator has the opportunity to ask if they are in fact doing the right things.  This is the difference between working in the business and working on the business.

The use of Advisory Panels has many benefits that can be tailored to meet the current needs of the business.  Some of these are:

• Ideas and suggestions to grow and develop the business
• Vision and purpose
• Increased productivity
• Increased market insight
• Improved culture
• Increased management capability
• Create new business model
• Technical support
• Increased understanding of compliance and governance requirements
• Practical commercial experience
• Financial knowledge
• Independence

An Advisory Panel is functioning at its best when:

• The business owners and operators are open to receiving input from others
• Input from mentors is strategic, constructive and relevant to the current needs of the business
• Everyone keeps an open mind and actively participates
• Communication is open and honest
• Everyone is being challenged through critical thinking

Advisory Panels are a proven technique that serves as an informal guide to help a business learn, grow and perform better.  In most cases, owners and operators are already talking to some of the right people; it’s just a matter of bringing that feedback into a forum that is more effective for the business.