If you’re unfamiliar with the term “non-executive director”, you’re not alone.
For businesses struggling to determine exactly why they should appoint a non-executive director, many factors must be considered. However, it’s vital that you understand that bringing the help you need on board is not only a good idea, it’s essential to the success, growth and stability of your business. What is a non-executive director, and what might these individuals offer businesses struggling to find growth in the modern economy? Here’s what you should know.
What Is a Non-Executive Director?
Many business owners and even experienced CEOs have less than a passing acquaintance with the position. Essentially, this person works part-time for your business in a director capacity, offering advice and help on a variety of situations. However, the individual does not take an executive position within the firm. Non-executive directors can be hired through strategic planning services and firms that offer other professional service solutions. The immediate upshot of this is a significant savings in terms of cost for the business in question, and what company couldn’t benefit from saving a few euros?
“Of course, the benefits go far deeper than just simple cash-savings.”
Evolution in the business world is growth. It’s important to realise that evolution is necessary – revolution often isn’t. The problems a business is experiencing that necessitate bringing a non-executive director aboard are often not earth shattering. Rather, they’re issues that require expert guidance, advice and a firm hand in the right position. A series of small changes (tweaks, as it were) is more beneficial than a single massive shift within the firm. A non-executive director can offer those tweaks and adjustments necessary to bring the business back in line with its growth objectives.
The Benefits Start Immediately
Hiring an executive director usually comes with a period of “feet-wetting” while the new executive becomes acclimated to the business, the business’ culture and its place in the market. With a non-executive director, that’s not the case. These individuals begin adding value to the business from the first day because that’s what they’re being paid to do. Because they’re not traditional business employees, non-executive directors face greater scrutiny, and must provide real, measurable results within a short time.
Other Ways in Which a Non-Executive Can Help
The benefits of bringing non-executive directors into a company are actually rather wide ranging. For instance, the individual can help get your executive team to stop their frantic routine and think about new ways for the business to grow, or better options for increased stability. He or she can also provide greater focus on developing the most appropriate strategy before a firm takes any public action as well. Dealing with stakeholders is another area where a non-exec can be invaluable – he or she can keep stakeholders on the business’ side.
Bringing a non-executive director into your company can be a highly beneficial business decision, with ramifications ranging from better profitability to enhanced stability over the long term.
To discuss if your company could benefit from a non-executive director, please mail us today at email@example.com or call 01 8058053