For AEC firm leaders navigating the complexities of growth, succession, and strategy, few tools are as underutilized—and as powerful—as a well-structured advisory board (AB) or board of directors (BOD). When Greg Riley became president of Schaefer Construction in Cincinnati nearly nine years ago, he faced a challenge many AEC leaders know all too well: there were no internal mentors, no one who had "been there" to lean on. His solution? Build an advisory board. It became one of the best decisions of his leadership tenure.
Advisory Boards vs. Boards of Directors: Understanding the Difference
Before building out your governance structure, it's important to understand how advisory boards and boards of directors differ. Unlike a BOD, an advisory board has no governing authority. It is purely advisory in nature—offering external perspective, strategic guidance, and a flexible meeting format without the legal or fiduciary obligations that come with formal board membership.
A board of directors, on the other hand, must meet corporate governance requirements and fulfill fiduciary duties, typically through quarterly meetings. For AEC firms structured as C-corps, S-corps, or Professional Service Companies (PSCs), a BOD is often a legal requirement. Directors insurance, while optional, is strongly recommended.
How to Build an Effective Advisory Board for Your AEC Firm
Riley recruited his initial advisory board members through a nonprofit serving local businesses, a CEO roundtable, and his personal network. He ultimately assembled a four-person advisory board with expertise in IT, AI, and finance—areas where he recognized gaps in his own organization.
When identifying advisory board candidates, Riley recommends looking for these key characteristics:
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Strategic thinking — Can they see the big picture for your firm?
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Financial acumen — Do they understand AEC-specific financial dynamics?
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Values alignment — Do their professional ethics match your firm's culture?
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Technology fluency — Are they equipped to advise in a rapidly evolving tech landscape?
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Commitment and communication — Will they show up prepared and engaged?
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Acquisition experience — Useful if M&A is part of your growth strategy
7 Tips to Get the Most Value from Your Boards
1. Invest in great board packets.
The single most impactful thing you can do is prepare thoroughly before every meeting. Your board packets should clearly communicate what's happening in your business, what's most important, and where your attention is focused.
2. Provide forward-looking information.
Advisory boards thrive on looking ahead, not back. While your BOD needs current data due to its fiduciary role, both boards should be focused on forward-thinking strategy. Come in with a clear "win" defined for each meeting.
3. Prioritize diversity.
A diverse advisory board—spanning gender, racial background, and geography if you operate in multiple markets—will think more broadly, consider more angles, and ultimately make better recommendations.
4. Know your legal and corporate obligations.
Understand state law and your corporate documents when structuring your BOD. Advisory boards offer more flexibility, but both benefit from an indemnification clause and a clear charter.
5. Compensate board members appropriately.
Advisory board members typically receive $1,000–$4,000, scaled to firm size. Internal BOD members may receive a stipend or bonus; external BOD members should always be compensated.
6. Leverage HR in the vetting process.
Your HR team brings bias-management skills and competency assessment experience that can improve how you identify and onboard board members.
7. Plan your exit strategy.
Transitioning a BOD member off the board is significantly more complicated than adjusting your advisory board roster. Plan for this from the start and take advantage of the AB's built-in flexibility.
Why AEC Leaders Should Sit on Outside Boards, Too
Riley encourages firm leaders to get involved beyond their own organizations. He earned a certificate in private governance and went on to sit on the board of a small consulting firm—an experience he calls mutually beneficial. "If you want to keep learning and growing, you need to get yourself on some boards and see the challenges they face," Riley said.
As coaching legend John Wooden put it: "Whatever you do in life, surround yourself with smart people who will argue with you." In Riley's words, a great advisory board will "call BS on you if it's appropriate."
For AEC firm leaders looking to sharpen their strategy, accelerate leadership development, and build a culture of accountability, investing in both a board of directors and an advisory board is not just smart governance—it's a competitive advantage.
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