The Role of a Non-Executive Director
Non-executive director roles are very rewarding. They involve helping businesses to develop an effective strategy which will help them to succeed, grow and make the most of the assets they already have. As a non-exec, you will typically be responsible for ensuring:
- There’s a robust strategy for ownership, development and business growth. There should also be an ongoing and regular process for monitoring, reviewing and refining the strategy.
- The business has the necessary resources in place to support its strategy – especially in the key areas of human and financial resources.
- There’s an appropriate system in place by which the business is directed and controlled (corporate governance) and a high standard of relationship exists with external stakeholders.
How do non-executive directors add value to an organisation?
- They provide an independent perspective along with a broader, external view of matters.
- They show companies how to be a confidential sounding board and play the role of ‘devil’s advocate’ to the senior executives of the business.
- They help the executive team to achieve their business plans by providing support in whatever form is appropriate given the non-exec’s background, experience and network of contacts.
What makes a good non-executive director?
NXD is an exclusive membership organisation that gives the benefits of non-executive directors to the SME world in a big way. We look for three main qualities in our members:
- Judgement – you possess sound judgement, including a good understanding of timing and relative value.
- Empathy – you’re prepared to listen (ahead of speaking) and appreciate (but aren’t swayed by) every different opinion. You should also have the patience to develop business growth at a speed appropriate to the company concerned.
- Integrity – you’re honest, consistent and reliable irrespective of the circumstances or pressures being placed on you.