Version française/French version: : LINK
This article discusses the importance for entrepreneurs to step back and establish a strategic committee or advisory board, which allows them to benefit from high-level expertise. We examine different modes of compensation for such a strategic committee and outline the ideal profile of a strategic advisor: an experienced individual who is critical yet supportive, capable of understanding the dynamics of a board. Certain technology startups supplement this strategic committee with a scientific committee to enlighten their scientific and technical choices.
E. Krieger
Adapted from « Le comité stratégique, clé de la performance entrepreneuriale », Les Echos Solutions, 02/06/2023 : https://solutions.lesechos.fr/business-development/c/le-comite-strategique-cle-de-la-performance-entrepreneuriale-38854/
Even when a young company has several partners with complementary profiles and temperaments, the founders are often so absorbed in their daily tasks that they are no longer able to step back and assess the development of their business.
This is where support mechanisms come into play, allowing for periodic evaluation and informed decision-making. The inclination to seek advice and high-level expertise often makes the difference between largely intuitive growth and more formal, ultimately much more effective processes.
The provision of advice and expertise is the raison d’être of many training and mentoring programs for entrepreneurs, including public structures, professional organizations, competitiveness clusters, incubators, and business accelerators.
However, it can be useful to establish a reflective body from the very beginning of the company’s creation, which foreshadows the governance model adopted by high-growth companies and publicly traded entities, where it is important to reassure funding providers.
The virtues of an advisory board
Creating a strategic committee has numerous benefits, particularly in providing founders with expertise that first-time entrepreneurs may lack. It also helps open doors, whether in scientific and technical, commercial, regulatory, or financial aspects.
The mere existence of such a committee can facilitate fundraising efforts and the acquisition of initial clients. This network effect even extends to the identification of exceptional individuals as new partners or employees.
In order to access such expertise and maximize your chances of reaching renowned decision-makers, start by not censoring yourself and be as ambitious as possible for yourself and your company. In other words, in the absence of any constraints, which individuals would you like to see sitting on your strategic committee? And if you don’t know these individuals directly, why not try to contact them directly? Many startups have successfully attracted experienced professionals who were honored to be approached, especially if the strategic committee allowed them to meet similarly calibered individuals from diverse backgrounds.
Compensation for participants
The compensation for members of such a strategic committee is rarely an issue, as it includes the satisfaction of enriching one’s own network and participating in the development of a promising company that can be boasted about later on.
Nevertheless, significant long-term involvement requires some form of reciprocation.
The remuneration of strategic committee members, therefore, ranges from periodic feasts and attendance fees to co-founder shares or stock options.
Profile of a strategic advisor
If you are a co-founder and leader of an innovative company, here is the profile of a member of your future strategic committee:
- Experienced in the sector and stage of development.
- Critical yet supportive.
- Not self-centered, understanding the dynamics of a board.
- Available for scheduled or unscheduled meetings.
- Willing to share their network and undertake ad hoc missions.
- Not necessarily a friend but an ally of the founder(s).
From the strategic committee to the scientific committee
Some technology startups complement the formation of a strategic committee with a high-level scientific committee, which contributes to enlightening executives on critical scientific and technical choices for the company’s development. Like the legendary Solvay Conferences created by the eponymous company in the early 20th century, some startups succeed in mobilizing Nobel laureates to help them make crucial technological choices. Needless to say, such profiles facilitate obtaining innovation support and even the conclusion of industrial partnerships.
Once again, it is important to be mindful of the overall dynamics of such a body and avoid involving individuals who don’t collaborate. The good news is that the best experts are often the most modest, and they also possess a solid sense of humor, which contributes to the quality of exchanges.
I have had the privilege of working closely with numerous startups and SMEs that have developed in this way before establishing a more formal board of directors. I can testify to the advantages of this type of body in terms of strategic thinking. If you are in the process of creating or developing such innovative companies yourself, do not hesitate to create and lead such a committee!
