What Is a Steering Committee and How Does It Work?

Mitigating risks, resolving conflicts, and managing projects as an SMB can be complex. So, you might consider a steering committee to act as your guiding light—but what is a steering committee, and do you need one?

Whether enhancing cybersecurity or improving project-based outcomes, your SMB can significantly benefit from an advisory committee. Considering 61% of SMBs report buyer's remorse over a recent technology purchase*, having access to expert support and advice could help you prevent these setbacks—and this is just one example.

While setting up a steering committee can be involved, as an SMB, you don't need to overthink it. Here's what to consider when seeking high-level assistance and how to get started. 

A steering committee is an advisory body of high-level members who help govern an organization. It can provide invaluable assistance in helping an SMB get off the ground, stay connected to the community, and appropriately govern itself. Typically, these committees include department managers and C-level executives. ​​

The responsibilities and functions of these committees can vary depending on the industry and company. The ultimate goal is to create a committee that offers diverse perspectives so that a range of insights and solutions are brought to the surface.

Steering committees can offer immense value for SMBs seeking advice, experience, and knowledge. Based on the advantages these advisory groups bring, they are often created in the IT industry. However, they also hold value outside the IT world, especially if your company focuses on project-based work.

Provide strategic project oversight

When you develop a steering committee for a specific project, they will provide advice and ensure successful outcomes. The committee would oversee the project, guiding resources, staffing, deadlines, marketing needs, budgeting, etc. It will also help your SMB make critical connections.

If you're creating a project-based steering committee, members could include a project manager, a technical expert, a financial analyst, an end-user representative, and then, depending on the scope, a legal or stakeholder representative.

Throughout the process, the committee may be involved in everything from overall project scope and direction to setting policies.

Assist with risk reduction 

Risk management should be a priority among SMBs, as it helps drive long-term growth and success. These risks could be anything from catastrophic HR issues to data breaches. 

Some threats overlap across many industries, such as data security—yet many SMBs do not consider cybersecurity until it's too late. In fact, Gartner reports that by 2025, a lack of talent or human failure will be responsible for over half of significant cyber incidents. [2] Meeting with expert cybersecurity steering committee members three to four times a year could make all the difference for your SMB.

When creating a steering committee, you must pinpoint your most significant threats. Depending on your business model and structure, your most significant risk could be equipment breakdowns, whereas another SMB may need to reduce risks associated with new legislation or rising interest rates.

Help organizations innovate

If you see an opportunity to become more competitive in your industry or niche, you may develop an innovation steering committee. As an SMB, do not allow strict committees to hinder innovative initiatives. The rise of artificial intelligence is a primary example.

Gartner reports on the importance of balancing innovation with risk mitigation concerning the applications of generative AI. Many organizations are creating AI policies [1] and steering committees that focus too heavily on risk management instead of on opportunities to create and dominate new dynamic marketing categories.

There is no one-size-fits-all answer concerning the perfect steering committee structure. Your objectives, company size, and industry will determine who is on your committee. Say you're in the life sciences industry—you may seek a combination of executive leaders and practitioners for a more well-rounded perspective.

These individuals often come from outside your organization, allowing you to gain expertise you wouldn't normally have—especially as an SMB with few team members. Creating a committee of external, capable members also helps ensure a more unbiased approach. To stay connected with members when you need them most, engagement ​​platforms can help streamline this process so that you can gain valuable insights from members 24/7.

Subject matter experts (SMEs)

Whether you lack formal governance processes or need assistance to launch your latest product, your committee must comprise subject-matter experts. These experts can be pulled from internal departments, such as your chief marketing officer, or hired externally—like a manufacturing quality consultant.

Some industries that benefit from SMEs include:

• Healthcare

• Law

• Marketing

• Engineering 

• Energy

Community members

If your organization serves the community at large, your steering committee must have members of the constituencies of that community. Doing so ensures that affected groups have a voice in your organization and can impact decisions that may affect them.

Example industries where community members are valuable include:

• Environmental 

• Justice 

• Government 

• Education

Board officers

If your board officers have relevant skills or talents, you may want to consider having them on a steering committee that will give advice and feedback. They can then report on the committee's progress to the board.

Like any business meeting, you need to plan and create an agenda in advance.

To maximize the time members have together, focus on big-picture concerns. Each member should provide insight based on their expected role. Communication is the most crucial aspect of any steering committee meeting, so it's essential to know who you're interacting with concerning varying perspectives and personalities.

Throughout the meeting, get someone to take notes, jot down what was discussed, and, of course, any major decisions. These decisions should be in writing, and before the meeting ends, all members should sign off on any suggested changes or crucial advice.

How often you meet will depend on the scope and intended pace of the project or objective. You may meet based on a time period, such as monthly or quarterly—or adjust your meeting schedule based on critical milestones.

A steering committee can help you remain competitive as a growing SMB—consider the following benefits if you're still on the fence. 

Outside organizational feedback

Steering committees allow your business or organization to access information, advice, and expertise that you may not otherwise be available to you. If you plan to launch a new product, are experimenting with new technology, or are concerned about the potential implications of a specific objective, external, unbiased advice could make or break your campaign or overall business. 

Deeper community connections

Since steering committee members typically come from outside an organization, you can build stronger connections between your SMB and another group. As you grow, you can lean on these connections to collaborate and network. This network can open new doors concerning additional experts or influencers. 

Guiding change management

Change management is how an organization can evolve to fulfill its mission or make more money. A steering committee can provide critical advice and technical expertise geared towards helping the organization advance.

You'll want to ensure you have at least a rough agenda of what you want to accomplish as part of your steering committee efforts. This agenda can help guide conversations and ensure you are sticking to the steering committee's purpose. Sample agenda items can include hearing reports from staff members, reviewing reports on project progress, and digging into financial documents.

Make a list of what's most relevant to your committee, including:

• Major issues and their implications

• Achievements and overall progress

• Cost updates 

• Work in progress and the next proposed steps

Steering committee agendas should always have a "new business" section. This allows committee members to provide feedback on broad items that may be within the committee's scope but not on the agenda.