Resourceful Non-Executive Director

Today, I will be focusing on the role of the stakeholder, resourceful and enterprising non-executive director (NED), in a challenging economic environment.

The NED because of his distinguishing personality, faithfully promotes the success of the organisation with skill and diligence. Although his role makes him less hands-on, he avoids conflicts and never exploits corporate opportunities. His value-adding activities make him a very useful member of the high performing board (of directors). His wealth of experience and expertise are always available to promote overall effectiveness. He also provides very valuable business connections (some organisations are making this mandatory for NEDs to remain on the board).

However, before I continue, let me set the context.

Prevailing tough business environment is a challenge to business leaders to commit to what I will call the “deep purpose”. This requires a lot of courage. Leaders must change the direction of the wind and effectively combat uncertainty. There must be strategic shifts and moves. Rigidities must give way to agilities. We must even thrive in these agilities. We must adopt collaborative dynamics to imbue vitality into internal team processes. As I have been stressing in this column, day-to-day innovation must be galvanized with entrepreneurship essentials.

The leader with his idealized influence must act out his role as a role model. He is the role model that provides intellectual stimulation, personalized coaching and encourages innovation flavoured with creativity. There must be tangible organizational shifts that increase the “all-hands-on-deck” syndrome or an “all-involving” culture of achievements.

Leaders must foster entire-work-force capacity improvement and engagement. All functions must be improved and all employees must be involved. We must be open to new perspectives and embrace continuous adaptation.

Please note that to in order to achieve competitive success (especially in this present turbulent environment), “people” is the critical resource. Leaders must leverage (or bundle for desirable outcomes) heterogeneous capabilities and core competencies. We need regular information and intelligent recommendations on economic and political trends, societal values and shifts in demographics as well as costs and prices.

I am trying to build the foundation on why organizations need connections and contributions from all stakeholders including NEDs.

Core competences that will help us thrive include; interpersonal relationships, social capital and the culture of stewardship.

Value-enhancing interpersonal relationship among leaders (including NEDS), generates trust and friendship.

Culture of stewardship delivers unique values to the internal teams. It thrives on respect, empathy, honesty and trust. It guarantees the service mindset and effective engagement. It is a core competency that helps organizational development, high performance and individual career growth.

The Resourceful non-executive director is on the board to help the executive team to be more successful. He was (usually) appointed for his experience in business and specialist knowledge. He gives useful and value-adding perspective to decision-making. He is the “critical friend” that must always act in the best interest of the organisation and its stakeholders. He provides strategic expertise, asks constructive questions and proffers useful suggestions, solutions and contributions. His fiduciary responsibilities imbue and guarantee confidence among stakeholders including communities and government at all levels.

He operates in full consciousness of the fact that he must continue to add value by supporting with his “full weight”, strategic initiatives, including creative solutions as well as innovative shifts. He shuns divisive tendencies because he is irrevocably committed to organisation’s success. He stands out as the enterprising NED that once the board has agreed on priorities, he supports execution. He knows that “it’s not about you, it’s about the organisation”. He is a good team player and whatever worries the executive team, worries him.

He must have the ability to comprehend the accounts of the organisation and the various financial requirements. His knowledge of corporate finance will always come in handy.

Innovation involves a lot of risk taking. He must therefore, have the ability to provide useful guidance with his experience in risk management. An enterprising NED must also have experience in people management, strategic visioning and stakeholder communication. This mentor and coach must therefore epitomize emotional intelligence.

His value-adding deliverables to the organisation should speak to the quality of his commitment.

One critical plan that leaders (including the NED) must always pay attention to in strategy execution, is the “Security Plan”. The survival and growth platforms for achieving strategic, tactical and operational deliverables. Strategies though targeted for long term success, must guarantee stability of organisations. They must be aligned to goals and objectives.

Tactical plan is midterm and must provide details on accomplishing the goals and objectives in the strategic plan. Operational plan is of course, the short-term detailed plan.

Let me conclude with these thoughts from Richard Winfield’s new book titled “New directors Handbook”

The author pointed out that “Every director (as far as strategic board leadership is concerned) is equal and the same”.

The NED, he explained must regularly showcase knowledge, experience and wisdom to support the organisation. He must put his commercial networks and very useful contacts at the organisation’s disposal.

He cautioned that NED’s approach to his responsibilities must be from the position of “value-adding experience perspective”. The non-executive director must provide essential guidance but not encroach or directly control. His working strategy must be “leveraging on experience” as an adviser.

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