This introduction leads the discussion of what's new, what is an advisory board, how does it work, and why not stick with the statutory board or hire a consultant?
The concept of advisors to the person in responsible charge, the ruling monarch or head of state is, of course, not new. Richard II and Henry VI recognized the King's Privy Council as a selected body of men appointed by the crown, without any patent or grant to advise the crown in matters of state. Originally, the council had legislative, judicial, and administrative powers. Now most of these powers have been either abolished or delegated. The individuals, if any, provide official or private counseling on specific issues.
The corporate descendants of advisors-to-the-chief have existed informally or formally in business since the beginning of enterprise development. While not yet a common industrial organization tool, the historical use of advisory councils is perhaps more common with financial intermediary companies such as banks, insurance companies, and financial services. Chapter 1 identifies over one hundred large publicly owned corporations of all types around the world that publicize their advisory councils.
The advice comes from various sources: fellow entrepreneurial founders and directors, senior family members, or other shareowners in closely held corporations. Attorneys, accountants, bankers, scientists, friends, consultants, experts, and mentors of diverse sorts show up on advisory councils, depending on the business sector size, state of development of the firm, and nature of ownership.
What is new is the context in which business and other institutions