SME’S SHOULD CONSIDER APPOINTING A NED
WHY SME’S SHOULD CONSIDER APPOINTING A NED
Many Directors and Owners of SME’s might be missing a huge opportunity to improve the performance of their business in terms of sales and profitability by not having a Non Executive Director on their Board. Why is this?
Well first, there is a misunderstanding about what NED’s actually provide to their SME clients. It’s not just all about Corporate Governance and Fiduciary Responsibility. Yes that is part of their role, making sure that Board and Sales Meeting are held and the appropriate items are covered on the Agenda, making them worthwhile and action orientated. However, NED’s bring far more to the table then just that.
NED’s offer a whole range of expertise and contacts in many areas crucial to the growth of businesses such as Sales and Business Development, bringing in new clients and contacts as well as attending Networking events and hosting Exhibitions and Trade Shows. Marketing were they help businesses produce and execute robust Marketing Plans. They support their clients across the whole spectrum of HR, including Recruitment and Disciplinary issues, taking external expert advice were appropriate. Client Relationship Management were NED’s support management in the deepening of existing client and supplier relationships. Funding and refinancing were NED’s use their professional contacts to ensure that the best funding or investment deals are available to their clients. Operations were they look at improving productivity and processes and finally, introducing KPI’s and Performance Management Frameworks to improve sales and service performance from employees.
The cost of employing a NED is also often over estimated and should be more than offset by the increase in profitability or a reduction in operational costs generated by your NED themselves.
Finally, SME’s with NED’s benefit from that independent supportive and sometimes critical but constructive overview of their business and business strategies. Challenging management and bringing alternative ideas are some of the greatest benefits that NED’s bring with them.