You’ve got an operational board and management team that have clearly defined roles and are driving the business forward… so why would you need a Non Executive Director (NED)?
Well, the role of a non-executive director has a few key elements to it, and importantly it brings an independent fresh perspective, often with a wide network of contacts and a broad experience background. The likelihood is you’ll find it very difficult to financially justify having this type of exec person on board full time, so recruiting a NED gives you access to this person and the benefits they will bring at a much more affordable rate.
You need to be really clear about what you expect from your NED, what would really make the difference to your business… here are some of the key elements of a Non-Executive Director role:
Business Strategy – NED’s are here to challenge your strategy and help develop it giving you an external experienced perspective, taking into consideration what you want to achieve, your financial controls, systems and risk assess where you are going. Success – NED’s scrutinise the performance of management in meeting goals you’ve set and developing the objectives you have, giving you clarity and then independent external advice on how those goals and objectives should be monitored and reported. People – NEDs can be responsible for determining appropriate levels of remuneration of exec directors and take a prime role in appointing and where necessary removing senior management as well as succession planning, a lot of NED’s have the skill sets to motivate and develop teams too. Communication and Networks – a NED may well be an expert in your sector or have a wide network to help you grow and develop your business, networking with the right people to help you achieve your business goals and strategy.
In terms of time a non executive will give your business will vary from company to company and can be as little as attending the monthly board meeting to provide independent strategic support or to weekly face to face or telephone meetings.
One of the most important elements to your decision-making is good fit, your new NED needs to connect with your management team and bring a fresh exciting new element to your business.
If you’re thinking about taking on a non-executive director for your business check out www.sarahcross.co.uk