Partner Article

Non-executive directors can benefit businesses

Many entrepreneurs are keen to profit from the skills of a non-executive director but over half are unsure of how they can use them to benefit their business.

However, a report commissioned by Coutts & Co shows that non-executive directors can often bring a wealth of experience to a company and can fill skills gaps in businesses.

However, a third of companies surveyed had suffered after employing a poorly performing non-executive director, who was unable to help the company with its priorities, which for many businesses seemed to be advice on finance raising and business exit strategies.

According to Andrew Haigh, managing partner for Entrepreneurs Client Group at Coutts: “The overall feedback from business owners is that non-executive directors can prove a vital resource by adding an independent, external perspective.”

“However, it is important that they are brought on board for the right reasons and that there are clear parameters in terms of what is expected.”

The report also shows how non-executive directors can add huge value to a business; but stresses the need for businesses to sent out clear expectations in order to get the most out of them.

Business owners are also encouraged to seek out non-executive directors through advice and recommendations, as well as ensuring that their skills would be right for the business.

This was posted in Bdaily's Members' News section by Ruth Mitchell .