Getting the best from...

...a non-executive director

The appointment of a non-executive director can add real value to a recruitment company - but what should you look for - and what should you expect?

The role of a non-executive director can be varied but will essentially aid good corporate governance, ensure that the rights of shareholders and stakeholders are upheld and bring an independent viewpoint to help develop and contribute to the long term strategy of the company. A non-exec will also help facilitate a good decision making process at board level.

So what qualities and background should you look for? First, for someone who has been a director in other companies - preferably covering a range of organisations in both executive and non-executive capacities - and preferably with experience of companies of a similar size to your own. This way you will know that they are up to speed with the legal aspects of corporate governance and will be able to empathise with issues relating to your size of business.

Check out the companies where the individual has been a director. What is their corporate governance reputation? How are they thought of within their industry sector? Have the companies been through difficult times and if so what's the story?

You may find that it was a really good learning experience for the potential non-exec and that he/she actually saved the businesses from a worse fate! You should also choose someone who is independent and strong enough to raise difficult issues, and who will ultimately blow the whistle if necessary! A non-exec position is a good vantage point to be able to ask both dumb and difficult questions to make the executive directors really question whether they have thought through their solutions.

When you appoint a non-exec you usually want some extra value for your money. This may be expertise in a particular area (eg marketing, law or finance), or it may be industry sector experience. However, bear in mind that, often, people outside your own industry sector can be really useful. Being able to approach the old problems in a new way and having the distance to look at issues with the wisdom of 'general business experience' can help the board recognise its strengths and weaknesses.

I strongly believe that bringing a fresh view to an industry is invaluable. Having coached senior executives from a variety of sectors over several years, I have found that the key issues around strategy and people are always the same and you can learn the subtle differences between the industries.

It's also worth identifying what other relevant areas of expertise you may be able to make use of. As I am a director of a leadership development company, Poolia Parker Bridge, the organisation I work with, was able to make use of my expertise in that area.

Finally, and most importantly, one of the key traits should be transparency. Everyone who has contact with your non-exec should understand his/her responsibilities and duties. And the non-exec should also be able to develop and maintain a good relationship with the other directors in order for the benefit to be sustained.

Contributor: John Knights is a non-executive director of Poolia Parker Bridge. He is chairman and director of several companies, including LeaderShape, a company that specialises in leadership development or senior executives.

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