How to recruit a non-executive director. Strangely, it may be easier to say “what not to do” in the first instance.
1. Don’t choose someone from the auditors
- They will be boring
- They will be super cautious
- They will be too financially orientated
2. Don’t choose someone just because they have the right name
- They will probably guess this is partly why you choose them and may therefore be arrogant about it
- If they are a “big name” you are almost certainly going to be a minnow in their world
3. Don’t choose someone just because you respect them
- This will soon wear thin. Trust is much more important (and don’t forget you should actually like these people)
4. Don’t choose someone just because they have your industry experience
- A good non-executive director is often better because they ask the “stupid question” that someone with industry experience considered irrelevant
5. Don’t choose someone who is doing it only for the money
- Decisions need to be challenged, hard and scary policies introduced. A non-executive director who is solely concerned with his or her fees will not contribute in the correct manner
6. Don’t choose an ex executive director or employee
- Independence is important. These people will carry too much baggage and emotion to do the job justice
7. Don’t assume non-executive directors don’t need objectives or feedback
- They do and both parties will feel more positive as a result of implementing such basic management principles
8. Don’t let your non-executive directors go native
- They must be able to see way beyond the wood
- If they become operational, they may loose this vital ingredient
9. Don’t agree with your non-executive director just because you think you should
- Equally, if they become in any way submissive, it’s time to move on
10. Don’t assume you don’t need a formal appointment
- You must put in place a contract for services
- Templates are on the web but it’s best to get a lawyer to check it over
And finally, don’t be afraid to trial run a few non-executive directors. This is an important relationship so try courting before the marriage.
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