Many companies face challenges in the board room, particularly in areas like strategic planning, governance, and fundraising.
While founders possess a deep understanding of their product and vision, and back that with bags of passion and energy, they may benefit from an unbiased voice when making high-level decisions. This is where Board Advisors and Non-Executive Directors come in.
Board Advisors
A Board Advisor is usually brought into an organisation to work on clearly defined projects where the board requires new perspectives, connections, or expertise. It is an opportunity to gain new insights from an impartial, experienced professional who can offer a different kind of fuel for decision making.
Board Advisors are as important to PLCs as they are to startups, filling gaps in organisations where directors and managers are stretched and recognise that a Board Advisor will be able to bring a laser-like focus to important issues.
A Board Advisor has no formal powers or legal duties, and they have no responsibility for company performance nor for the outcomes of any advice or input they contribute. The role is unregulated and brings with it no specific fiduciary liabilities.
Non-Executive Directors
A Non-Executive Director (NED) is an independent member of the board, attending board meetings and bringing independent oversight. A NED plays a vital role in challenging the decision-making of an executive board, providing a very different and essential dynamic in defining strategy.
In addition, they take long-term views of crucial issues that will impact future success. They are excellent communicators both within the organisation and the outside world, and they must satisfy themselves on the integrity of financial information, controls, and systems of risk management.
NEDs agree remuneration of the board and have powers that can lead to the removal of executives. It is a regulated role and is one that should not be undertaken lightly as the Companies Act 2006 does not distinguish legally between Executive and Non-Executive Directors.
Who Do I Need?
Partnering with either a Board Advisor or a Non-Executive Director can provide your business with the strategic direction, connections, and oversight needed to navigate the crucial early stages and propel your business forward.
If you’re looking for a sounding board for ideas or someone with a specialist skillset, a Board Advisor might be just what you need. Low commitment and highly flexible.
If your goal is to more formally expand the leadership of your company, entering into a contract with a Non-Executive Director may be more appropriate.
Whether you would like some advice, or you’re ready to move forward, let’s talk.