Non-exec role can lead to huge benefits

Oct 14 2009 By The Journal

Next month, The Journal will name the second winner of the North East Non Executive Director of the Year Award. Tarek Nseir, chief executive of Newcastle-based digital agency Think tells Andrew Hebden how the appointment of a new non-exec chairman helped transform his business.

EVERY company has ambitions to grow, but making the step from a regional player to one with national or even global ambitions is not easy.

It was faced with the challenge of how to make a transformational step for his business that Tarek Nseir decided to call in help from an expert.

The boss of Newcastle-based web design agency Think knew that it was essential to broaden his firm’s client base if it was to continue its pattern of growth which had seen it notch several top national accolades.

So he contacted Lucy Armstrong, chief executive of The Alchemists, to see if they could put him in touch with the expert assistance the firm required.

And when they came up with a contact they felt fitted the bill, it was the first step in a relationship which has, in Mr Nseir’s own words, has been "revolutionary".

"Think had been looking for a while to understand how we transformed the business from a regional agency with a small handful of clients to a national agency with larger clients, and we knew that we couldn’t do that on our own," he said.

MT Rainey made her name in the industry through the success of her own agency, Rainey Kelly Campbell Roalfe and later through her website www.horsesmouth.co.uk.

After initially advising Think during a fixed period, the relationship was eventually formalised around 18 months ago when she became non-executive chairman of the firm.

Mr Nseir said that his chairman has brought two outstanding qualities to the business. Firstly, she offers an elevated view of the company and a complete objectivity which has helped the board to drive its own thinking to the next level.

Secondly, she is an expert in the industry, something that is not always necessary in a non-executive director appointment, but which in this case has proved an invaluable help.

He said the appointment had enabled the board to look beyond day-to-day operational issues and towards a more strategic approach for the company.

Mr Nseir describes his chairman’s boardroom style as "challenging at every level". But he credits her with having a "dramatic and immediate change" in the business.

"In an owner-managed business it is easy to lose sight of things, so it is fantastic to have someone to call on whenever I need to," he said.

MT Rainey’s arrival at Think was timely in wake of the problems at Northern Rock which was its single largest client.

"She was instrumental in helping us to break into the London market. As a result we have seen our revenues continue to grow despite some very challenging times."

Today, around 90% of Think’s revenue comes from clients based in London.

He urged other companies in the region to look at what such an addition may bring to their boardroom – but warned that the choice had to be tempered with caution. "Finding the right non-exec is fundamental," he said.

SPONSORS

THE winner of the second North East Non-Executive Director of the Year Awards will be announced at the North East Business Executive of the Year event on November 19.

This award is sponsored by a consortium of local businesses and organisations, who recognise the important role that non-executive directors can play.

The sponsors are: Muckle LLP, North East Chamber of Commerce, The Alchemists, Barclays, Baker Tilly, Brewin Dolphin, North Star Equity Investors, One North East and Northumbria University.