Agency Governance Part 1: Peer Boards.

Most agency founders don't wake up one morning and say "I think what this business really needs is governance." That'd be a kinda weird thing to say (but I respect it if that's you).

What they say instead might sound more like "Is X normal? Surely I'm not the only one who…"

For most agencies, Governance usually starts more simply than a formal board - instead it's a structure that helps to pull founders out of the weeds and into what the AICD (Australian Institute of Company Directors) calls the 'Helicopter View'.

There are three common models you might come across (excluding a formal board of directors):

1. Peer Boards
2. Advisors
3. Advisory Boards

Each solves a slightly different problem in a slightly different way. None are automatically "better" than the others. The right choice depends on your agency and how you personally like to work.

A simple summary of the three models

Peer Board — A group of business founders/leaders at a similar stage, sharing problems, perspectives, and accountability in a (usually) facilitated environment.

Advisor — A single, experienced external operator who works closely with you one-to-one.

Advisory Board — A small, curated group of experienced people who you meet with regularly to work as something that looks a little bit like a formal board.

Let's get into some detail. This week: Peer Boards.

Peer Boards

Peer boards are usually the most accessible entry point into light-touch governance for agency owners.

There are plenty of them around, all with slightly different spins. You've probably heard of CUB (I'm currently a member there) for example, but there's heaps of options making this model an easy entry.

In theory, I like them and in practice, they can work very well for the right person. There are some shortcomings though that I'll get into in a sec.

At their core, you're in a room (or on a call) with other founders dealing with similar problems, at roughly the same stage, with no sales agenda.

Why they work

• You very quickly realise your problems aren't unique (which IMO is comforting, not depressing).
• Cost is relatively low compared to the perspective you gain.
• Group accountability and social pressure can be powerful… if someone is actually tracking commitments.

They tend to work best when:

• You're open to sharing properly (you don't see every other agency as the enemy).
• Part of the appeal is the networking/social aspect (I've led a large agency before - I know how isolating it can be sometimes)

Watch-outs

• Advice is capped by lived experience. If everyone's at the same level, depth can be limited.
• Without strong facilitation, sessions can drift into venting.
• Accountability often disappears unless someone is taking notes and following up.
• You still have to do the hard work of applying advice to your context - peer groups don't do that for you.

My thoughts

Peer boards can solve several problems at once (perspective, community, accountability) and are a sensible place to start if you want a low-commitment, low-risk way to introduce structure around your business.

My frustrations with my experiences in Peer Boards is that everyone is probably around the same level as you. Also, unless it's a particularly curated group, you can end up with some businesses with zero overlap in applicable experience. Or with people you can't stand.

Part 2 — Advisors is up next.