Being brought up in Scotland, my father used to say “You are a fool to drink whisky before you are 30 – and a fool not to drink whisky after your 30 ! ” Similarly, a Small and Medium sized Entreprise (SME) with ambitions is a fool not to appoint a Non-Executive Director.

Why?

Some pundits say that running a business is very easy – all one needs to do is prepare a good strategic plan and then implement it. In practice, it is somewhat different.

Assembling a good plan requires considerable business expertise and industry knowledge and having a seasoned and experienced “outsider” helps; especially when there are Directors / Partners / Owners with differing personal and business objectives. And as many surveys show, companies that spend time on strategic planning, have a better chance of maximising growth and profits.  

A good Non-Executive Director can help implementation by bringing a discipline to monthly Board Meetings, whereby actions are agreed and monitored, procrastination is minimised and deadlines are met. Their experience and energy can help resolve ongoing business issues (a problem shared is a problem halved). Overall, Management becomes more effective.

What makes a good SME Non-Executive?

In my opinion, a good SME Non-Executive:

a)      Has run his or her own SME. Experience in a large organisation may help but experience running a SME’s is essential.

b)      Brings to the table business expertise that complements the skills of the current Management – for example, I have good experience being a Non Executive Finance Director and this benefits companies that need this expertise.

c) Has the personality and empathy to dovetail with the current Management.

What makes you think you are a good SME Non-Executive?

My university degree was Business Studies and I qualified as a Chartered Accountant. My big company experience was with Scottish & Newcastle Breweries and Mobil Oil – but I have also started my own Accounting Practice, built it up and sold it. For the last 20 + years, I have been working with SME’s – working as a strategic planning adviser and Non- Executive Director.     

Over the years, I have worked with many entrepreneurs in many different industry sectors – so have picked up quite a few tricks of how and how not to do things. Some companies have been successful, made acquisitions and exited at a good price – but I have also worked with others, who have struggled – and I can assure you putting companies into administration or liquidation is not pleasant.

With this experience, I believe I am well positioned to help SME’s whether they are “start-up”, “early stage” or “well established”.

Conclusions

SME’s with ambitions should seriously consider appointing a Non-Executive Director. Their support and knowledge can help maximise opportunities, whilst helping avoid the many pitfalls that lie ahead – and their remuneration is really an investment rather than a cost as they will bring considerable value to your company.

So that’s all from me – I’m now off for “wee dram” – a 16 Year Old Lagavulin – like an experienced  Non-Executive, a trusted companion in good times and bad – “Slanje Va !”.

Norrie Jackson (nj@jfp-strategic-planning.co.uk or 07710 348 197)