Volatility has established a new norm in this country. We can pinpoint when it started and the reasons for it, but we can neither control it nor predict its demise. The only other alternative is to respond to it more aggressively with more structure and better ideas. That means CEOs need better, more immediate advice to the problems they have always faced and the new ones that have reared their ugly heads. Advisory boards provide armament in this newly-defined conflict.

Advisory boards exist for the sole purpose of advising the CEO. They differ from boards of directors and family councils because they do not vote, nor do they have fiduciary obligations. Sometimes advisory boards co- exist with a board or directors or a family council, but more often, owners or CEOs create them when neither of the other kinds exists. Advisory boards can be general in scope or targeted to specific markets, industries, or issues such as adopting new technology or going global. Advisory boards offer numerous other benefits to the CEO. Here are five:

1. CEOs seldom receive unbiased information, and they don't always spot a bias when they see one. Conventional wisdom advises: "Don't ask the barber if you need a haircut," yet the organizational equivalent to a cast of barbers populates every organization. No CEO can be certain he or she will receive impartial information from those who have a stake in the outcome of the decision.

In addition to offering prejudicial opinions, members of the organization tend to "filter" information that reaches the top. Like the king's taters of medieval times, those in the CEO's chain of command too often sort out what information should go forward and what should stall. CEOs need unfettered access to all relevant information. Sometimes an advisory board can offer more information; at other times they will recognize that the CEO doesn't have all the data that he or she should have received from those in the organization.

2. Those in the organization rely on CEOs to make final and important decisions, yet CEOs have so few sources of advice and wisdom. Advisory boards can provide timely knowledge about trends and the competition. They also might be able to identify upcoming political, legislative, and regulatory developments that will influence the organization.

When struggling with a complex decision, reliable information and strong analysis of the data work in tandem. One creates the voice; the other the echo. Without the presence of trusted advisor the voice lies fallow. This can cause the CEOs to hesitate in moving ideas to action, to second guess decisions, or to limit the number of creative solutions, especially when facing unfamiliar problems.

Advisory boards offer an alternative. If the CEO has chosen members of the advisory board time wisely, they will create a sounding board of highly-skilled, knowledgeable colleagues who can help the CEO get to the core of the issue, keep the focus on strategy, and zero in on the critical few while putting aside the trivial many. When advisors play devil's advocate, they can force the CEO to look at a number of scenarios-a practice that will identify worst cases and best practices.

CEOs who try to brainstorm with their executive teams often meet resistance and fear because the members of the team worry about every far-fetched idea that the CEO entertains. With advisors, the CEO can truly explore possibilities without causing undue angst.

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