Advantages of appointing a Non-executive directors
I want to look at the advantages of non-executive directors. There are many advantages for such an appointing to your board, on a part-time basis, here are just a few that are certainly worth your consideration:
Taking advantage of their experience – The NED can fill a valuable gap in a small business owner’s experience, or can even add some specific industry knowledge on a sector that the business is targeting. As with myself most NEDs have helped many businesses find their feet, develop and grow through tough times and other challenges. Key to this is the wide range of experience the NED has accumulated over time. If however faced with a situation they’ve not dealt with before, most would have a wide ranging network of experts they can call upon for assistance.
Giving you a fresh perspective – Because the NED doesn’t work with your business full time and won’t we concerned with day-to-day issues they can concentrate on looking at the bigger picture. What is the direction of the business? Are the targets being met? What business and wider environmental changes may affect the business in the immediate future? Which competitors should the business be keeping an eye on, and what are the plans to stay ahead? They will have the ability and confidence to to give great advice and make unbiased decisions in the interest of the business.
Useful connections – Successful businesses are well connected ones. The NED can add to existing contacts a range of connections that could advance the business strategies and objectives, adding a new dimension to your business.
Keeping the management team in check – Many businesses fall into bad habits; missing agenda items, conversations being side tracked, and opinions being discounted incorrectly. The introduction of a NED will help to keep things on track and also help to alleviate tensions.
Giving an objective view – NEDs can round off a board by providing experience and knowledge that other directors may not have. They are also able to take a more objective view of issues affecting the business and offering a wider sense of the possibilities for growth.
They can be a welcome independent voice on specific projects, acting as a mediator, voicing the Pro-Select and cons of proposed moves. If their are financial issues they can alleviate stress and bring a voice of reason to the table.
For those who have not considered the positive affect the NED can have on the developing or changing business, it must, at the very least, be worth a conversation, don’t you think?