Disruption is everywhere. It impacts every industry. In 2015, the Global Center for Digital Business Transformation coined the term ‘Digital Vortex’ to describe how it sucks industries in. Key industries (in the centre of the vortex) are hit the hardest, but even industries on the edge of the vortex are affected.
And the effect is expanding. In a follow-up study in 2017 the Center found that all industries are closer to the centre of the vortex than they were two years previously. None experienced less disruption than before.
If your business is not developing any strategies to ride this wave of disruption, you’re in danger of being blindsided.
In that 2015 survey by the Center, researchers learnt:
1. Most business owners, executives, and managers aren’t adequately preparing for the rapid age of disruption.
2. Almost 90% of these business owners, managers and executives actually anticipate their business will be disrupted.
3. Only 40% of them say that their business organizations have prepared for the disruptions to come.
How to appropriately respond to the age of disruption?
In all this talk of disruption, it’s useful to remember that even the most competitive landscapes aren’t remade violently overnight. So if businesses that want to respond to disruption have the will to transform themselves into organisations equipped to deal with change, they’re already a good part of the way there.
But owners, managers and executives who are driven to transform their companies know (or quickly find out) that they can’t do it on their own. Many feel overwhelmed, knowing that ‘digital’ is not their world, their area of expertise.
Chances are you’re going to need the help of external experts who can advise on new technology and solutions to help you and your business adapt.
Which is where an advisory board comes in. The best entrepreneurs use an advisory board to fill in the gaps of knowledge.
Matthew Horton, co-founder and managing director of HR and payroll platform foundU, says that exposure to different opinions and advice from advisory board members is invaluable. Businesses can have different opinions and honest discussions about their business and they can either reject or accept the advice of the board. But the benefit of it is that they get to hear a different opinion from the people they trust and respect. An advisory board is always a powerful asset in finding solutions to key challenges.
Benefits of an advisory board
Business owners, managers, and executives have someone to talk objectively about business issues.
There is a wide variety of skills and expertise available for advisory board members who have “been there, done that”.
Businesses with formal advisory board improve their strategic business choices and decision-making.
Leaders, managers, and executives find it easier to develop new and better ideas.
On average, most businesses increased their sales for up to 66% in their first three years after setting up an advisory board.
Productivity rate of businesses who have an advisory board increased from 3.2% to 5.9% on average.