Choosing Advisors that Suit the Executive Suite

By Elaine Su

TV programs and movies often portray a “typical executive” as one who is continually wheeling-and-dealing, trailed by a gaggle of staff catering to his or her every whim. In reality, many executives don’t operate with a huge, expensive entourage. “Everyday executives” are not out to make headlines. They’re not here to save the world. They’re just trying to do the best they can. Yet the image of the executive as corporate titan has become so ingrained in modern-day thinking that few realize the toll that it takes.

Executives can become so isolated from their core business that critical decision making becomes very difficult. If the company does not invest in research to validate a hunch, then the executive risks relying on anecdotal evidence that is dated or, worse yet, wrong. Conflicting agendas among colleagues and departments also make it hard for a leader to discern whether the information given him or her is truly in the best interests of the company, or is the result of office politicking. The end result is that key decisions may be based on gut and past experience. But chances are that at some point, a pivotal situation will creep up that is unlike any the leader has ever encountered, and it will be tough to solely rely on instinct. That’s when having a cadre of trusted advisors becomes essential.

These advisors need to have high ethical standards, and be ready to provide frank, sometimes unpopular, feedback. It’s essential that the executive be provided with what he or she needs to know, rather than what he or she wants to hear. Here’s a list of essential executive advisors:

• Financial advisor. While this is obvious, it is worth stating that the obligation of a financial advisor is to represent the best interest of the company’s investors and shareholders, not the interests of any single individual. Consequently, an executive should be prepared to spar with the financial advisor from time to time.
  
  
• Legal advisor. Corporate legal counsel represents the best interest of the company, even if that means disagreeing with the executive. Why? Because in the heat of the moment, it can be very tempting for a businessperson to overlook what seem like minor points in order to clinch the deal. An experienced attorney will have a better idea of which issues can turn into a major headache if dealt with improperly.
  
  
• Trusted employee. It’s common knowledge that if an executive wants to know how the company is really doing, he should ask the employees. Because they are on the front line, they generally know what’s working and what isn’t, well before senior management does. While the executive should be talking one-on-one with employees regularly, she or he should also consider recruiting a few highly regarded employees into the inner circle. These employees are invaluable when it comes to learning about how the mechanics (and politics) of the business really play out.
  
  
• Human resources. The head of HR is responsible for tracking overall staff performance and morale. However, since the human resources department is often viewed as “management,” employees may not trust that the department truly represents their interests. If that's the case, there is good reason to have two distinct personnel staff advisors—an employee representative and a human resources executive.
  
• Customer relations. No business can succeed without satisfied customers. A customer service advisor will help steer the company toward the ideal type and mix of products and services and provide a sense of what the competition is doing.
  
  
• Mentor. Lastly, just as a top-notch athlete still relies on a coach’s experience and cool eye to achieve optimal performance, a top executive will benefit by a close relationship with a trusted mentor. The advice of one who had even more experience and faced even greater challenges is invaluable. An ally who has been in business for years can impart a great deal of wisdom when it comes to navigating the peaks and valleys inevitable in any corporate cycle.

One final caveat: many executives meet with specific advisors only on an as-needed basis—usually once a matter has become urgent. That is an unfortunate waste of talent. The astute executive uses a carefully selected group of advisors as an ongoing resource, ensuring that he or she guides the organization by experience, logic and hard data, and isn't constantly putting out fires.

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Author Bio: Elaine Su, Group Leader for FIND/SVP Inc.’s Management Advisory Group, is an attorney who advises management and executive personnel in risk management, negotiating and deal-making activities and other business matters.