As a nation we’re incredibly enterprising. With bright minds and vivid imaginations, it’s no surprise that many career opportunities featured on s1jobs are increasingly focused on young ventures in n
ew areas of innovation.
It’s hugely encouraging. What sometimes isn’t is the survival rate of fledgling companies – often in the burgeoning tech and IT sector – who have spectacular ideas but zero or little business experience.
How do they translate their wonderful concept into a marketable commodity on a global scale? How do they ensure long-term business growth? And how and when do they recruit from s1jobs to expand their team to meet demand? Well, that’s where the Non-Executive Director, or NXD, steps in.
While Generations Y and Z may be exploding with ideas, the NXD has the experience, contacts book and the long, dispassionate view that can offer focus, resolve confusion and guide strategies.
Many people think NXDs are only required in big listed companies. However, there’s an informal network of accomplished people who take a positive pleasure in mentoring promising new ventures, big and small.
“They perform a rather different role in SMEs compared to their peers at large listed companies,” says Dr Roger Barker, Head of Corporate Governance at the Institute of Directors. “In SMEs, the focus is much more on offering relevant expertise and business experience. Their value comes through their advisory input, which may fill gaps in the company’s in-house capabilities.”
ICAS (The Institute of Chartered Accountants of Scotland) says while Executive Directors would normally be involved in the day-to-day management and operations of the company and hold roles such as MD or Finance Director, NXDs are expected to operate as a ‘check and balance’ to the executives. They do this by bringing an objective external viewpoint to the board meeting and, where appropriate, making constructive challenges to those boardroom big decisions.
To be successful, any business must be connected. While networking is the obvious route – it takes time. There are lots of urgent demands to face and it can be difficult to build a network of trusted contacts at the same time. An NXD typically comes with a range of contacts, which they have acquired over several years, and so they can make swift, useful introductions to marketing firms, supply chain companies and, crucially, potential clients.
Of course, it’s important to be up front in stating what is wanted from an NXD: how much access you expect, how much he or she will be paid. Remember, too, the NXD will have the same legal obligations to a company as a Company Director.
The best of the best, however, will foresee the pitfalls they’ve already encountered in business and help others find their feet and survive even the toughest of times allowing the spirit of entrepreneurship to thrive.
If you’d like to make a difference in business, check out the latest Executive and Management vacancies on s1jobs.