Sixth Story: Supporting companies in establishing effective advisory boards and nominating independent local and international members
Brief explanation of the idea
The idea is based on helping companies establish effective advisory boards that support decision-making, enrich strategic vision, and provide specialized expertise from within and outside Saudi Arabia. The idea also includes nominating highly experienced, independent local and international members, thereby strengthening governance and increasing the company’s ability to meet challenges.
The situation before the intervention
The companies relied on limited internal decision-making and lacked sufficient experience in building a genuine advisory board. They also suffered from a shortage of specialized expertise and the absence of systematic mechanisms for selecting independent consultants. This led to slow development, repeated mistakes, and poor quality strategic decisions.
Why was intervention so urgent?
With the challenges and rapid changes in the market, companies increasingly need impartial external perspectives and global expertise to help build a broader vision. An effective advisory board is essential to ensure the quality of decisions, enhance competitiveness, improve governance, and raise the level of organizational maturity in line with international standards.
The risks if the situation continues as it is
Continuing to manage its operations without external expertise would have led to ill-conceived decisions, a weakened ability to mitigate risks, and a repetition of strategic errors. Furthermore, companies would have lost their capacity for rapid development or global expansion, potentially exposing them to failure or the loss of market share in competitive sectors.
What is the challenge?
The challenge lay in building an advisory board tailored to each company, identifying the required expertise, and finding independent members with international experience. It was also essential to establish a clear framework for the board, define its powers, ensure its alignment with the board of directors, and rigorously implement governance standards.
Why is the idea considered innovative?
The concept was distinguished by transforming the advisory board from a mere formality into an effective body that monitors performance and provides in-depth recommendations based on data and analysis. The model also introduced the concept of “global members,” enabling companies to benefit from advanced international expertise and raise the level of advisory quality.
The advantage of this idea compared to traditional methods
The traditional approach relies on forming a nominal council without a systematic selection of members or a clear definition of their roles. This model, however, provides a precise mechanism for selecting members, a comprehensive structure for the council’s work, and monitoring and evaluation tools, making the advisory council an influential element in performance and a model of advanced governance.
How was the idea turned into a project?
The project began by analyzing the company’s strategic needs, then identifying the required expertise of the members, searching for local and international candidates, conducting detailed interviews, and selecting the most suitable ones. Following this, a governance framework for the board was established, the first meetings were held, and recommendations were implemented until the board became an integral part of the decision-making process.
Project impact on the organization and society
The project contributed to improving the quality of strategic decisions, increasing companies’ ability to innovate and expand, and boosting investor confidence. It also led to improved governance and a higher level of professionalism within companies. At the societal level, it contributed to creating a more mature business environment and enhancing the efficiency of the private sector.
Has it been implemented in other locations?
Yes, the model has been implemented in small and medium-sized enterprises (SMEs). The pool of international consultants has been expanded to suit each sector. The model has proven highly effective, making it a leading methodology for establishing effective advisory boards in Saudi Arabia.