The Benefits of A Non Executive Director 2017 | Page 3

Non Execs Think Laterally.
Because a Non Exec Director does not work as part of the day to day
executive management team, they are not likely to be involved in office
politics and thus retain their independence. They make unbiased
decisions based on business principles and are often well versed in
knowing what works in which markets. It is a trait of Non Execs when
challenging the Board (constructively) that they think of alternative ways
to approach a problem or a sales initiative that the Board (who are
typically made of people from the sector and market in which they are
working) have never considered.
It’s All About Connections.
Networking with professional advisors and other industry connections
can be a very time consuming job in itself and when growing a
private/smaller business the CEO or MD does not necessarily have an
inclination to do this. A Non Exec Director on the other hand has spent
a career making these connections and in most cases can offer a black
book of relevant contacts to go along with their own
experience. The NED Black Book is not just lawyers, accountants and
funders, it could be industry contacts who may well boost sales and
open doors which are not open to the business.
Management Team Monitoring
Most Boards of Directors are driven by habit and the Board Meeting
can fall prey to this – if indeed there is an official Board Meeting at
all. A NED can help stabilise and drive processes through the Board
and keep the team in check.
It is often cited that NEDs “round off a board” by providing the key
industry experience and knowledge that the various other directors
simply do not possess. Their independence is their key asset and it is
one that adds value at every turn – they are better placed to make
comments and pass constructive criticism than a day to day member of
the executive Board.