The five attributes of the highly successful NED - advice from the UK's top business leader

Sir Roger Carr, Chair of BAE Systems, received the Lifetime Achievement Award at the Non-Executive Director (NED) Awards on 27 March 2019 in central London.

Sir Roger identified the five key attributes of a successful NED

1. Have the right motives for joining the board, since the risk reward ratio is rarely favourable - what I can contribute must be more important than what I will get out if it. And develop the skillset to contribute as an individual, with the mindset of a team player.
2. Don't confuse helping the executive team with meddling in the business. That means getting to understand the business. 'Board members challenge. Executives execute. And non-executives execute the executive if they continually fail!'
3. Accept that others have something to offer. The best boards comprise individuals who are sure of themselves – but respect colleagues for their contribution.
4. Acknowledge that you may have been hired for your CV– but you will be valued most for your character.' A good NED is able to look to the mirror for judgement – not the gallery for applause. She or he has the courage to speak truth to power, the resilience to be rebuffed, and the integrity to know – whatever the pressure from stakeholders – that a board must do the right thing simply because it is the right thing to do.'
5. Recognise that stakeholders are increasingly focused on companies' ethical behaviour - how they make their money, not simply how much money they make.

As if these comments weren't enough, Sir Roger finished with some very powerful points:

• Honesty – integrity – and diversity are the hallmarks of a good board.
• Diversity is not box ticking – it provides the healthiest environment for collective decision making – it is a combination of merit and gender. This is not simply a gender issue – it’s about making business better.
• NEDs need to show respect for the environment, and concern for all stakeholders.
• Business - and business leaders - must be performance driven and values led. These are not optional extras - they are at the heart of the business, and the key to social acceptability.
• If capitalism is to thrive, the reputation of business must improve, and in this the role of the non-executive is key - 'how we conduct ourselves - present ourselves - govern ourselves - and pay ourselves'.
• 'IN SHORT, being a non-executive is not simply a job – it is a privilege – and vital if business is to be of value to society, and valued by the community in which we live'.

Wonderful sentiments!