Evidence-Based Power of Peer Advisory Boards

At TAB, we continually strive for improvement. That is why, for nearly five years, we have collaborated closely with a team of independent researchers from George Washington University and Case Western Reserve University led by Dr. Roman Terekhin. The team studies diverse peer advisory boards to better understand what makes them effective and how to make them even more valuable to the participants. The results of their studies provide evidence-based support for TAB work and enhance the experience of our members. Some of these studies are very recent and have not been published yet, so we are on the cutting-edge of scientific knowledge about peer boards. We appreciate the engagement of our members and facilitators in these studies and sharing their experience with the researchers.

Considering the critical role of peer boards for business owners and their organizations, it would be unwise to build them only on one’s “gut feeling” or some individual success stories. That is why we rely on evidence-based knowledge that generalizes best practices from multiple global organizers of peer boards and considers the diverse experiences of several thousand group members. The scientifically proven techniques that we implement, allow us to provide relevant support to any business owner. Below we summarize the main findings from research on peer boards of business owners.

Do peer boards help business owners?

In multiple studies, the researchers have compared support that business owners receive from peer boards to that from other teams they have access to. Peer boards proved to be significantly effective for individual development and learning among business leaders. They also notably improve overall well-being—a critical factor given the daily pressures faced by leaders in their job. That is no surprise, because, according to the studies, peers who were in your shoes are a leader’s unique source for development and problem-solving: they understand challenges of each other and can provide relevant advice and experience sharing. They also are able to support each other and mitigate loneliness that is an inherent part of a business leader’s job. Business leaders shared that there is no other social group, even their team or family members, that can understand them and be helpful as much as their peers. Thanks to long-term trustful relationships that are nurtured by a professional facilitator, the group is able to help each member with their struggles even when there is no obvious solution.

Do peer boards impact business development and bottom-line?

Although finding new clients or trusted contractors is a common result of group work too, the main proven benefit for the members’ organizations comes from:

• Avoiding losses thanks to collective approach to problem-solving in the boards;
• Improving risk preparedness through learning from the peers and active exploration of each other’s businesses;
• Seizing emerging opportunities (a critical skill of a business owner) as the peer board helps members spot additional opportunities, craft effective strategies, and act confidently on bold growth moves.

Why do business owners join peer boards?

Interestingly, almost none of the business leaders who joined peer boards were familiar with this format and they expected just networking or help with current challenges. Yes, boards are essential in helping with current emerging challenges, but their unique feature, according to Roman’s team research, is that they are able to address much deeper, strategic issues and obstacles and help the organization to avoid stagnation, overcome market decline, conquer a new market, or scale up dramatically. This is the result of a properly combined group of peers who were in your shoes and are engaged in helping each other—a unique feature of peer boards.

Are groups still helpful amidst a novel challenge—when no peer has had experience with it?

Although being helpful with day-to-day work, the study shows that peer boards become especially handy for business owners during a crisis. Rapidly evolving economic or geopolitical situations add novel challenges that a leader must address, that is why coming together with those who are facing a similar challenge, having access to the most up-to-date information about the new problems (and opportunities) during a crisis, and having a “team” of great minds who collectively face a crisis allow members not only to survive but to benefit from it. During a crisis, peer boards provide timely and topical help that takes into account the collective experience of the members about the evolving situation and best practices in adapting to it. Many business owners shared that their peer board became their life-line during COVID-19 pandemic and after major shifts in their country’s policies. Moreover, boards not only helped them to survive but thrive thanks to the opportunities that they collectively discovered during those crises.

What makes peer boards effective?

Research identified the most important characteristics of an effective peer board:

1. Optimal group composition.

This is not only about being together with fellow business owners. To make the group really effective, it should be carefully composed of the members whose skills and backgrounds are different and complement each other, allowing opportunity to see novel perspectives and ideas for each participant. At the same time, the participants in a group should share similar status and role; it is important to make sure that they were in each other’s shoes and understand each other instantly. The optimal balance of “similar but different” is a key to proper group composition.

2. Longevity of a group.

Although participants start to benefit from a board from the very first meetings, they share that it takes 6-24 months to establish full trust and deep understanding among group members, which enables even deeper support and mutual engagement. Such long-standing relationships facilitate mutual understanding and camaraderie and boost engagement in helping each other.

3. Professional facilitation.

Although the peers are the main source of expertise in group meetings, professional facilitation significantly increases their contribution. Considering that members of the board are different in their personalities and approaches to running a meeting, a trusted professional can help to find a balance between the expectations and preserve a safe space even in the hottest discussion. A professional facilitator is instrumental in building group emotional intelligence—another critical feature of effective peer board. Very few business owners are familiar with this concept before they join the board, although it is proved to be one of the most powerful contributors to effectiveness of peer boards.

In The Members’ Own Words…

Peer Board is a Space Where You Can Be Honest

(Confidential, judgment-free, emotionally safe)
- “It is a safe space with a group of very self aware individuals.”
 “Feedback from the group is open and honest. But feedback is also fair and does not indict individuals or get personal. It is a safe environment, and we can seek answers freely without fear of criticism.”
- “My peer group allows me to have unfiltered/confidential conversations about issues within my professional and personal life. Feedback is respectful but honest from a group of individuals that I trust.”
- “Candid conversation from a diverse group on topics inappropriate to discuss with subordinates.”
- “The non-disclosure agreement is great, creates a feeling of security and allows leaders to share, listen and be vulnerable.”

- “Transparency is key. Efficient getting to the bottom line.”

A Circle of Support and Shared Energy
(Not just practical help — emotional lift and care)

- “The encouragement received helps me to push through the tough times and allows me to draw on the energy of others!”
- “A supportive environment where my job is primarily to help others be successful.”
- “We treat each other with real support and empathy.”
- “Running your own business can feel like you're constantly pulled in multiple directions… You don’t have to do it alone and can get the support you need from the group or from the business coach individually.”

Access to Real Insight, Not Just Advice
(Diverse input, tailored feedback, fresh perspective)

- “It recharges me and gives a forum for seeking information that I cannot get from my work group, family, or friends.”
- “I like the fact that I get unbiased perspectives on how to handle various situations and/or employee problems.”
- “Effective feedback regarding my topics is when someone is thoughtful about a suggestion that fits with who I am and the business I run.”
- “Having a group I can turn to for advice is huge.”
- “The peer group is effective for me, because the group challenges my thought process, so I can look at all angles to a situation, thus making a better decision.”

Structure, Challenge, and Follow-Through
(A push to act — with accountability and clarity)

- “Allow and force me to plan business development. Gives me the opportunity, otherwise rare, to share my vision and get honest feedbacks.”
- “What makes the peer group effective for me is the inherent accountability to make progress on the things we talk about.”
- “I am most appreciative when our group members call me out for not following through on a commitment.”

The big decisions have been on your shoulders. Until now.

Building on scholarly evidence, TAB carefully matches each member with a carefully selected group of 6–8 non-competing business leaders whose expertise complement each other. The groups are organized using best proven practices to maximize outcomes for each member.

At TAB, we also pay significant attention to preparing group facilitators. Recent international research by Dr. Terekhin helped to understand the facilitators’ critical role in peer boards and what interventions are optimal to allow peers to help each other yet add significant value to these discussions using facilitator’s skills and their own expertise. Benefiting from the results of this research and in collaborations with the scholars, TAB composed first-of-a-kind evidence-based image of an optimal facilitator for a peer board and recommendations for working with a board.

Whether you're facing a turning point or simply want to grow with greater clarity and support, TAB gives you a space — and a structure — to lead. This is a scientifically proven fact.