The appointment of a Non Executive Director ( NED ) can lead to great benefits for the company.  Perhaps a staid, introvert, 'comfort zoned' management team is in place but the need for controlled change is necessary in order to improve business performance.

The appointment of a Non Executive Director ( NED ) can lead to great benefits for the company.

Perhaps a staid, introvert, 'comfort zoned' management team is in place but the need for controlled change is necessary in order to improve business performance.

The reluctance to change, an environment of 'we have always done it this way' can be found in many small businesses, particularly family owned.  The usual consequence of this behaviour is a deterioration in the financial success of the business.

How would this situation arise?

It is not uncommon for the management team to overlook, not even realise changes happen in the market place, usually because the team are engrossed in the day-to-day activities that consume the time.  The NED can counter this taking a different view on matters, particularly when business strategy is being developed.  The non-involvement in routine daily work will allow the NED time to reflect on the best future of the business and develop strategies accordingly. 

The organisational structure of the business may be an obstruction to the success of the organisation. 

The NED may fill a skill gap on the Board of Directors.  In addition an overbearing Chief Executive Officer (CEO ) or an ineffective Board of Directors are both scenarios in which the Non Executive Director can add balance to the team and offset the existent extremes.

The NED may offer the appopriate help during a period of significant change.  Businesses do change ownership, relocate, grow expotentially and the specialist help offered by the NED would be invaluable.