Getting the Most from a Scientific Advisory Board

OVERVIEW: The care and feeding of Scientific Advisory Boards is an activity that is governed by a company's rationale for establishing such an organization. Up-front planning must be done to establish the SAB's charter, role, makeup, and use. Also it is recognized that one must be flexible and will have to make changes to enhance the group's ability to help the company meet its strategic objectives. The effectiveness of the SAB is directly related to the clarity of purpose, interaction with company scientists, sharing strategies and objectives with the members, and challenging them to make contributions. The authors describe Celanese Corporation's positive experience with the establishment and operation of an SAB, along with pitfalls and recommendations. Scientific Advisory Boards (SABs) have been used for many years by small, start-up companies, especially those funded by venture capitalists. The reasons are obvious, since the raison d'etre for many of these companies was the exploitation of a new scientific idea and technology. SABs gave the investors a comfort factor by rendering an independent overview and critique of the status, direction and viability of the company's technology. Furthermore, these Boards helped the entrepreneur focus on proving and developing the technology by providing direction, approaches to external resources, constructive criticism and, in some cases, hands-on scientific assistance. Also, a Board composed of prestigious scientists can make the company's stock more attractive to potential partners and shareholders. Another benefit of SABs to small, start-up companies is that all relevant personnel usually have access to the Board's scientific expertise and advice. In recent years, a number of medium and large technology-based corporations have established, or have considered establishing, SABs. While many of the reasons for doing this are similar to those described above, there are other rationales that are specific to larger organizations. Also, the use of SABs in companies that have large and diverse R&D groups and business units poses some interesting management challenges. The additional rationales are: *Ego gratification for the CEO, by having world-renowned scientists available to, and involved with, his corporation. *Advise the CEO, board of directors and stockholders on the strength and health of the company's science and technology base. *Help the CEO crystallize his vision far his corporation's R&D organization. *Assist the chief technical officer with technology audits. *Provide the CTO with "super" consultants for key programs. *Advise the CEO and CTO on growth opportunities by their vision of future technology and business needs. *Give the CTO contact with, and access to, external institutions such as universities, government entities, scientific establishments, and other companies. *Review the critical science needs of the organization for the CTO and suggest approaches that address these requirements. *Supply insight and advice to the CTO and CEO on various technology management issues. *Expose the company's technical and business personnel to "new" thinking. Obviously, the above rationales are not mutually exclusive and all can be addressed by managing the time and priorities of the SAB. The role of the Board also evolves as its members and company executives become comfortable with their working relationships. However, it is very important in obtaining effective and efficient input from the SAB to manage their roles and priorities so as not to frustrate and confuse them. Since SAB members are chosen for their accomplishments, competence and expected contributions, they must be challenged with interesting and significant issues. Also, the company's investment in the SAB in terms of time and money should yield a useful return. This article describes our experiences with the use of an SAB at Celanese Corporation, and provides some insights into the lessons learned on effectively using such a Board. …