Rewarding boardroom bravery

Jul 4 2008 By Andrew Hebden

The Journal is celebrating the role of non-executive directors as part of its North East Business Executive of the Year awards. But what will the judges be looking for? Andrew Hebden seeks out the qualities of a good non-exec

BOARDROOMS can be intimidating places, so it can take a character of some stature to take up a seat around the table in the role of non-executive director.

But what kind of character really thrives in the role?

Andrew Davison, a partner at Newcastle law firm and award sponsor Muckle LLP, said a good non-exec should have an inquiring mind and not be afraid to ask the “stupid question”.

“They should have a good grounding of experience, not necessarily linked to the particular business – it depends on what role they are going to fulfil,” he said.

“They should be able to ask a difficult question in a way that is not threatening to the management team – perhaps with a smile on their face.

“They should provide a sounding board for the management team. We are looking for someone who instills trust and boosts confidence, while challenging in a constructive manner.

“They should be able to raise ambitions through their ability to enable the management team to see for themselves what is possible.”

A major study published by leadership consultancy practice Whitehead Mann carried out in-depth interviews with 124 senior executives to establish some key qualities for a good non-exec.

They concluded there were 10 key “X Factors” that mark out a great non-exec:

A breadth of experience: An outstanding non-exec does not need to be an expert in the business or sector but should be able to assess and comment on a full range of commercial and governance issues.

Team players who leave their ego at the door: A good non-exec knows how to stand back and not usurp the chief executive or other directors. They should let the executive team get on with the job in hand, take a different view where necessary and act as a check and balance.

Independent advisers who can challenge as well as support: Ask difficult questions, probe, penetrate, be persistent, test, stimulate debate and be a catalyst for change.

Committed and prepared: They must be willing to spend some time getting to know the business.

Articulate communicators: The best do more listening than talking, are articulate and command respect when they speak.

Sharp minds and good judgement: They should have a sharp mind to get under the skins of issues, grasp concepts and distil information quickly.

Visionary, creative and passionate about business: The best non-execs help the board stay focused on strategic issues and challenge and inspire them to take a leap forward.

Build strong relationships and act as ambassadors: They command respect, have a wide network of contacts and build strong relationships inside and outside the boardroom.

Self-confident without being dogmatic: They should be able to hold and express opinions but not be afraid to admit when they don’t know something.

Enhance their contribution through feedback: They contribute to collective decisions to define and deliver the business strategy. The best non-execs welcome ongoing feedback and coaching.

The non-executive director of the year award is being sponsored by: Muckle LLP, North East Chamber of Commerce, CBI, the Alchemists, Barclays, North Star Equity Investors, UBS Wealth Management, Newcastle University, Baker Tilly and Miller UK.