Many privately held distributors have advisory boards, but they are comprised entirely of insiders, or the board is convened merely as a formality or legality. But a so-called "real board" could help in formulating and enforcing company strategy, says industry consultant Brent Grover of Evergreen Consulting in Creating a Board of Directors.

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The most useful advisory board will include "objective experienced businesspeople that can provide real input to the company," Grover says.

Rick Rogers, president of B.W. Rogers Co., a fluid power distributor in Akron, OH, inherited the board his father created when he was leading the company. "It was an executive board, but he had had the foresight to ask outsiders to sit on the board. It's evolved into a much stronger entity over the years."

Rogers' board does not include just members with experience in the distribution industry. "It's important to look for people that can fill in where you might have some weaknesses," he explains. Rogers' board has included a local grocer who is "fabulous with customer service issues we wanted to undertake" and a local advertising professional to advise on marketing.

Grover recommends starting with your immediate network of friends and colleagues. Also, look to people who work at large public companies. Usually, only the presidents and CEOs already sit on boards. "The others in the company are typically not asked, but would be flattered to do so," Grover said. "You'll be amazed at the talent that you can recruit to be on your board."

Grover is featured in this month’s Executive Briefing. Watch his presentation on Succession Planning, which includes advice on creating a Board of Advisors, here.