Non-Executive Director - GTE Group

The Benefits of None-Executive Director Services

More than just an objective outsider, an effective non-executive director not only lends experience and knowledge to a business, but also acts as a mentor, sounding board and critic.

A non-executive director (NED) sits in the board of a company and shares the same legal responsibilities as the executive directors. They are not affiliated with the company or part of the executive management team, so can act as an independent objective voice on important decisions.

Only working a contractual number of hours, NEDs are concerned with the strategy performance and governance of a company, not its daily business, so will have full knowledge of accounts, targets and sales figures.

Looking at the company whole

We see a NED as providing a "helicopter view" of the company. "Because of our part-role, NEDs simply cannot get entangled in the day to day operations, whereas for a busy executive team, it is all too easy to get sucked into those details, focusing on the now and forgetting the future. The job of an NED is to help the board not lose sight of the big picture.

Challenge the MD and executive board

Constantly asking "why" is another important job for a NED. "Asking the apparently simple questions about the business can really help an executive team to refocus on the important rather than the urgent. The freedom to challenge the board means that conventional ideas such as 'we've always done it that way' can be explored too. The ability to stand back question but not enforce is the duty of a good NED. " WE need to ensure that the business is well run and not to run the business."

Advise on Strategy

"A business without a strategy is a business without a sense of direction or purpose". NEDs will ask questions like: "Where are you going?" "What are your short, medium and long term aims?" and "What does success look like?" - things can all be too easily forgotten in the day-to-day running of the business. NEDs can facilitate the executive team to focus on articulating this strategy and communicating it thereafter." An effective NED must have good interpersonal skills, sound judgement, and the ability to manage conflicts and influence through clear communications.