An expensive luxury or a cost effective necessity?
A lot of small businesses believe that a non-executive directorship is an expensive luxury reserved for large organisations. They are actually an incredibly cost-effective way of inputting high quality management into your business and the right non-exec can add tremendous value to any SME.
What is a non-executive?
A non-executive directorship is an appointment to the board of a company on a part-time basis. The work of a NED generally involves helping the owner/CEO and the board to operate more effectively and achieve their objectives by bringing a strategic ‘eye’, an added element of structure and process and crucially, lots of great experience.
A non-executive director holds a unique position in a business. They are neither fully in the business nor outside it, they stand on the ‘rim’, able to provide a different perspective, unbiased advice and new thinking whilst at the same time being fully committed to the long term success of the business.
Why use a non-executive director?
- Non-executive directors can offer advice from the perspective of somebody who isn’t absorbed in the day-to-day rituals of the business. They’re independent and their judgements aren’t biased and they can concentrate more on strategy because they are not burdened with the executive duties that occupy the rest of the board..
- They can bring in their own personal skills, experience and industry contacts. They also provide a different perspective, fresh new thinking and a wealth of knowledge, experience and contacts.
- They have a different level of emotional attachment to the business, it’s often easier for someone less involved to identify problems within the company and instigate the changes needed in order for business growth to occur.
- A non-executive directorship helps your business remain competitive. Many organisations from small companies to those listed in the FTSE 100 employ non-execs for this reason.
- All our non-executive directors are committed to adding value to the businesses they work with and helping them to meet their goals whether this is business growth or increasing profits or something else.
- On occasions NEDS will challenge the business owner/leader and tell them what they need to hear, not what people think they want to hear and they are always available to act as a confidential sounding board.
Every company and organisation has different requirements when it comes to their non-executive directors. For this reason, we always discuss your reasons for recruiting a NED and the role you expect them to perform. Together, we identify the help you need and deliver it from our network of experienced business professionals; people who have been there, seen it and done it before.
Whether you’re a privately owned business going through change and could do with some advice and support or you’re a small listed company who needs to find the right non-executive director for your board, NXD can help.
What makes us different?
- We don’t charge a placement fee.
- NXD is made up of current and past business leaders which means that we can provide practical advice based on experience.
- Our main focus is to identify the value we can add to your business.
- We value good old fashioned standards of decency, honour and sticking to our commitments.
- We are all dedicated to bringing the benefits of non-execs, board advisors and part-time execs to the UK business world and in particular, to small businesses and SMEs.
If you would like more information about the benefits of having a non-executive directorship in your business, please feel free to contact us and we will be more than happy to help.