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Growth surge in advisory boards, State of the Market Report reveals



According to the State of the Market report released by the Advisory Board Centre, advisory boards are increasing in prevalence and impact. The most common starting point for such boards is businesses worth USD1.5m, with the average business, hosting an advisory board, valued at USD20m. Annually, an investment of USD40,000 to USD70,000 is made for paid roles, accounting for monthly meetings with the chair and quarterly meetings with the full board. Corporatised advisory boards are also on the rise, with governance board constraints being a key driver for this trend. Chairs face the challenge of managing risk profiles in a corporate setting, necessitating board recruiters to source independent members. Project advisory boards constitute 53% of newly formed boards, contributing to the 19% sector growth between 2020 and 2023. These boards typically last between 3 to 18 months. The report also shows there are more than 2.6 million advisory board professionals globally. Upholding ethics and credentials is crucial to protect the sector's reputation. On average, these professionals engage in six engagements, underscoring the growing influence of advisory boards in global business.

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