Non-Executive Directors : The Impact
Non-Executive Directors are growing in prevalence, with Tesco being the latest to increase theirs to six. As many of you know I perform a Non-executive role* (a bit like a Non-executive Director ) for a small handful of clients. Here is the lowdown on what they do and what the benefits are:
What do they do?
Non-Executives work as a medium/long term “critical friend” of the board or CEO. Their role can involve:
- Assessing performance regularly
- Offering impartial strategic input or support for individuals at a senior level
- Attend the monthly board meetings (usually as a minimum)
- Objectively critiquing the company’s performance
- Your best interests at heart
- Specialist experience in various businesses
- Personal skills
Why should you appoint one?
- They can assist your profitability and growth goals
- They can be a central facilitator for positive change
- They can speed up decision making and ‘cut the wheat from the chaff’
- There is no ‘axe to grind’ and no fear of presenting the truth
- The right person is a quality investment
- They encourage consistent and productive meetings which can enhance accountability
- They can encourage a ‘working together’ culture with the business goal at the forefront
How does it work – the Andy Aldridge way….
On a personal level I tend to work on a project basis with clients initially, which sometimes then leads to a non-executive position, but only if it is the right decision for the business. This project basis gives us both time to assess whether a) we are compatible and b) whether you actually still need me around or whether you can be completely independent now. I specialise in integrity; it’s the cornerstone of my business, rather than recurring fees for no real reason.
Another client comment:
“We hold monthly senior team meetings which everyone attends – come hell or high water. These meetings are playing a big part in keeping us on track. We spend two full hours together, with each team reporting on progress and Andy acting as independent chair –he’s very good at teasing out what people really think and ensuring everyone has their say. Andy’s can-do attitude has been infectious.”
John Smith, Louth Tractors.
Want to know more? get in touch.
*Andy plays a non-exec role but would not be a Non-Executive ‘Director’ of your company.