"Independent Directors help executive directors to get the most out of their business. They provide fresh objective input to strategic thinking and decision making. They use their broad business experience and judgement to provide encouragement and watch for pitfalls." 3i plc
A few years ago, Non-Executive Directors were seen as a useful - although possibly expensive - addition to boards of larger companies. Increasingly, companies of all sizes are recognising the substantial benefits of having an independent director on the board. The undoubted skill of the emerging entrepreneur can benefit from the support of energetic, seasoned business professionals as much as the long-established family firm.
The number of Non-Executive Directors is increasing, and generally companies have a ratio of one independent director to every executive director, irrespective of turnover. The average in smaller companies (below £25 million turnover) is 3 Non-Executives in a total of 6 Directors.
How can a Non-Executive Director help a small or medium sized company?
Be involved in the creation of sound business policy and strategy
Reviewing the detailed plans and budgets which will implement policy and strategy
Be a confidential sounding board for the Chairman and Chief Executive
Independently reviewing the management structure
Objectively assessing the companys overall performance
Providing outside experience of the workings of other companies and industries
Providing contacts with third parties such as financial sources, grant availability, etc.
How can Strategy Consulting Help?
Our links with the Institute of Management Consultancy, the
Academy of Business Strategy and the Chartered Institute of Marketing provide an extensive network of qualified and experienced directors.
The Managing Director of Strategy Consulting Limited, John Courtney MABS, AIMC, has been a Company Director for over 20 years, including many years as Chairman or Managing Director. He brings a wealth of experience, particularly in strategy, funding, general management, sales, marketing, import./export and purchasing.
What will it cost?
Having an effective independent Director can be very cost effective. Charges obviously vary according to the size of company, the responsibilities involved and the frequency and length of meetings. Annual costs for Non-Executives start at £6000 for Directors and £8000 for Chairmen.