top of page

You probably don’t need another director. You might need a Non-Executive Director.

Writer: Alex Baker
Alex Baker
Sep 15
3 min read

Updated: Sep 17

Growing businesses reach a point where the decisions get bigger, but adding another full-time director is not necessarily the answer.


The owner may still be close to every major decision. The senior team may be strong.


The business may be performing well. What can be missing is someone sufficiently experienced and sufficiently independent to ask the awkward question before an expensive decision is made.


That is where a good Non-Executive Director can earn their place.


A NED isn’t another pair of hands

The value of a Non-Executive Director is not that they arrive and start running the business. In fact, if that is what you need, you probably need an executive hire.


A good NED sits slightly outside the day-to-day. They bring experience from other businesses, other situations and often other sectors. They can challenge assumptions without being caught up in the politics or pressure of delivering this week’s numbers.


For an owner or managing director, that can be hugely valuable. There are not always many people inside a business who can genuinely challenge the person at the top.


The best NEDs don’t make the decisions for you. They make it harder to make a poor decision without properly thinking it through.

When does a business actually need one?

There is no magic turnover figure or headcount. It is usually more about what is happening within the business.


Growth may have accelerated and the management team may be dealing with decisions it has never faced before. The business might be preparing for investment, acquisition, succession or a major change in direction. An owner may want to strengthen governance without creating another full-time role. Or the leadership team may simply have become too close to the business to see every problem clearly.


In those situations, buying a small amount of highly experienced time can make far more sense than adding another full-time salary.


The title matters less than the gap

One of the mistakes businesses make is starting with the title: “We need a NED.”


The better question is: “What are we missing around the table?”


It might be someone who has scaled a manufacturing operation. Someone who has sold a business. Someone who understands international growth, finance, technology, people or governance. Sometimes it is simply someone who has already made the mistakes the current leadership team is trying to avoid.


That distinction matters.


A famous name with an impressive CV is not automatically a useful NED. Relevance, chemistry, judgement and the willingness to challenge constructively matter far more.


And sometimes a NED is the wrong answer

If the business needs somebody to own a function, manage a team or deliver a major operational programme, dressing the requirement up as a NED role will not solve it.


Nor will appointing someone purely because their name looks good on the website.


A NED works best when the business genuinely wants challenge. That means being prepared to hear a view that does not simply confirm what the leadership team already believes.


A natural extension of senior hiring

At Shillito Group, much of our work starts with the same question, whether the eventual answer is a permanent senior hire, an executive search or Non-Executive support:


What does the business actually need next?


Sometimes that is a full-time leader. Sometimes it is a specialist. And sometimes the most valuable addition is an experienced person who is not there every day at all.


The important part is diagnosing the gap before deciding what title should fill it.

 
 
 

Comments


bottom of page