Non executive directors can be extremely useful to any company. In many companies, it can be relatively simple for the management structure to slip into an introverted and staid approach to business. Find out how to avoid the complacency trap….
It is fairly common for traditional, family owned businesses to fall into the trap of “we’ve always done it this way – why should we change?”
Non executive directors can:
- Have a huge effect on boardroom culture and behaviour along with corporate governance.
- Influence not only the company’s governance but also the “family governance” in non listed companies.
- Bring to the boardroom a sense of independence and challenge the norm.
- Often see risks and opportunities in the market place that might be overlooked by the executive management.
- Act as a business`s internal critical friend and source of challenging questions.
- Be an influential sounding board for ideas and guidance in times of need.
- Have an influence to moderate overbearing directors who are not running the business for the benefit of the shareholders.
- Have the opposite effect of the point made above, in that they can bring flair and vision beyond the norm within the business.
- Bring with them their own sphere of contacts.
- Help to see companies through corporate transitions.
- Fill a skills gap at board level.