Non-Executive Directors

Non-Executive Directors (NEDs) can be extremely useful to any business to help improve the efficiency of a Board and bring an alternative viewpoint. It is common for SME businesses to fall into the trap of "it's always been done this way" and not consider change or a pro-active review of the business.

Research shows that only a small number of SME businesses utilise the service of a NED, but those that do are consistently more successful. Recruiting a NED and making a commitment can bring considerable commercial expertise to the business. Each appointment is tailored to match the requirement, we take great pride in adding value to a business.

The benefits that a NED can bring include the following:

New Skills and Experience

A NED can bring specialist skills not already in the business, and will also bring valuable experience to the table and will probably have seen many of the problems you are facing before.

Corporate Governance

By working with a NED you are committing to improving the way your business is run. By having formal regular Board Meetings the management of the business will understand that the business operates a culture of accountability and that they will have to report performance, and account for their decisions and subsequent actions. This ensures operational matters are discussed pragmatically and therefore more time is freed up for focus on the strategic direction of the business.

Specific Assistance

Some businesses require a NED to see them through a corporate transition such as an acquisition or the sale of the business, where they can bring specific expertise having been involved in similar matters previously.

Decision Making

A NED can help a business make tough decisions with an independent viewpoint, for example in making staff decisions to ensure they are based solely on performance and the benefit that will bring to the business. Not being involved in day to day matters will enable a clearer focus on key decisions within the business.

Credibility

Where a business has external stakeholders such as banks and other Shareholders, a NED can bring credibility to the table. This can assist in raising capital and improving the overall perception of the business.

Independence

The NED will be acting with the best interests of the business, and not any one particular Director or Shareholder. This can help in difficult situations and help resolve conflicts. This can be particularly important where the Managing Director or Chief Executive is especially entrepreneurial or overbearing and tries to force things through. An independent view can assist in ensuring everything is properly considered for the benefit of the business.

Contact Us now to see if a non executive director could benefit your business


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