We are preparing our SaaS business for an exit and want to establish a formal advisory board to help us navigate the sale. Where does an advisory board or board of directors sit on the EOS Accountability Chart, and how do we prevent them from crossing boundaries into our Integrator's day-to-day operations?

Question

Tyler Smith · Accepted Answer

An advisory board or board of directors does not sit inside the operational boxes of your Accountability Chart. Instead, they sit in a governing box directly above the Visionary and Integrator seats. This placement is crucial because their role is governance, high-level strategy, and fiduciary oversight, not daily execution.

To prevent your advisory board from crossing operational boundaries and undermining your Integrator, you must establish clear, non-negotiable rules of engagement. The board's primary relationship is with the Visionary and Integrator, not the departmental directors.

Clearly define the roles of the advisory board seat on your chart. Their roles should include:
- Provide strategic advice on market positioning and exit timing.
- Review and approve annual budgets and major capital expenditures.
- Introduce the executive team to potential buyers and investment bankers.

Under no circumstances should advisory board members assign tasks, request reports directly from department heads, or participate in your weekly Level 10 Meetings. All communication must flow through the Integrator.

If a board member tries to bypass this structure, the Integrator must immediately address the boundary crossing. Having this visual representation on your Accountability Chart makes it easy to show the board where their influence ends and where the operational team's authority begins. This boundary protection is vital to keep your business running smoothly as you approach a transaction.