The Benefits of A Non Executive Director 2017 | Page 2

The benefits of a Non Executive Director (NED)
It is true that most people in business have heard of Non Executive
Directors (sometimes referred to as NED or NXD) but you probably will
not grasp or fully comprehend what they are and indeed what they can
potentially do for a small or growing business. In many businesses,
the NED recruitment has been the saviour of the business in tough times
and the hero in transactional situations, as they are blessed with the
benefit of hindsight.
You might think that NEDs are for the good of big businesses or indeed
major corporations such as Microsoft, Apple or British Aerospace,
but recruiting the right NED will help a smaller company gain the
valuable experience, contact-base and knowledge that a NED
inevitably brings. Not only that a Non Exec Director also brings ideas
as well as positive/constructive criticism which will not fail to add value
to any business, regardless of its size.
Non Execs will fill gaps which exist in smaller businesses and inevitably
these stem from the owner’s lack of all round experience (this is in no
way a criticism but all leaders look for inspiration and mentoring to
challenge and help grow their business constantly). Non Executive
Directors can add industry knowledge in a specific sector – most non
exec appointments opt to appoint NEDs with either experience in their
own industry, in the industries they are targeting or with a specific
subset of skills valuable to the business. Whatever the reason the
appointment is made, when recruiting a Non Exec Director the CEO
will always opt for an experienced business person with a strong
business background – who has helped a number of businesses find
their feet, grow or survive in tough times.
In these situations, if a NED
has not got the experience and hindsight, you can bet your bottom
dollar that they will know someone who has!