Building a business can be tricky – particularly in these recessionary times. Even when things are going well, there is a constant flow of challenges that need to be approached carefully and dealt with correctly.
Particularly for a fast-growing business, the counsel and support of a non-executive director can be the difference between success and failure. They can be a voice of challenge, and of conscience – as well as bringing an added level of authority.
Such is the nature of the role, the non-exec will differ wildly, depending on the needs of the organisation they serve, so how can you ensure that you recruit the right one for your business?
Firstly, relevance needs to be a defining attribute. Sounds obvious, but a non-exec with a deep understanding of the industry your business serves can offer appropriate advice on areas for growth. Especially within a highly entrepreneurial company, a relevant track record is vital. Furthermore, a good non-exec will be able to bring with them a book of contacts bursting with resources and new networks for your company to exploit, as it continues to grow.
Secondly, timing is crucial. There is a critical time on the growth curve of any organisation where increasing complexity and scale mean that finding solutions to new and different challenges will justify the additional effort and cost of appointing a non-exec.
Emotional intelligence is often an attribute much underrated. The most effective non-execs will fully understand and empathise with the culture and vision of your business, ideally having taken a similar career path elsewhere. However, it’s also important that they possess detached judgement, and a level of objectivity that allows them to make decisions that are removed from the influences of the day-to-day running of the business.
Finally, few things are more important than trust and respect – a fundamental element of any partnership. Ultimately, working closely with a non-exec means choosing somebody who is not only likeable and trustworthy, but can guide you in making changes to help your business flourish and grow.
So how do I know all this? Well, having recently conducted a search for a non-exec, we have been there; done that. I found the process rigorous yet exciting. And, by taking this on board, we appointed former TMW chief Chris Warren, who brings with him experience aplenty. We believe we’ve made a great choice, and it’s a move that’s already paying incredibly profitable dividends.
Ian Stockley is managing director of Indicia
