Why non-executive directors are key to business growth and innovation

In today’s competitive business environment, companies must constantly innovate and grow in order to remain successful. This can be a challenge, particularly for established companies that are facing increased competition and changing market conditions. Non-executive directors (NEDs) play a critical role in helping companies to drive growth and innovation, and can provide a range of benefits that support long-term success.

1. Diversified expertise and experience

NEDs bring a range of skills, expertise and experience to the board, and can offer a diverse perspective on business growth and innovation. For example, a non-exec with experience in a particular industry or market can provide valuable insights into current trends and future opportunities. Similarly, one with a background in innovation can help to identify and assess new opportunities for growth. This diversified expertise and experience can help the board to make informed decisions and drive growth and innovation more effectively.

2. Independent perspective

Because NEDs are typically not involved in a company’s day-to-day operations, they can provide a fresh, independent perspective on business growth and innovation. This can be particularly valuable when it comes to assessing new opportunities. For example, they may be able to spot new opportunities that are not immediately apparent to other board members, or provide alternative solutions to growth and innovation challenges.

3. Monitoring and accountability

NEDs play an important role in monitoring a company’s performance and ensuring that it is taking the necessary steps to drive growth and innovation. They can review strategies and plans, monitor progress towards growth objectives, and keep the board regularly updated on key growth and innovation initiatives. By providing independent oversight, NEDs can help to hold the company accountable for its growth and innovation efforts.

4. Support for decision-making

NEDs can give the board support and guidance in making decisions, particularly in relation to growth and innovation initiatives. They can evaluate options, assess risks and benefits, and provide a strategic perspective on key decisions. This can be particularly valuable in complex situations where there may be multiple growth and innovation opportunities, and where the board needs to make difficult decisions in a timely and effective manner.

5. Encouraging innovation

NEDs can encourage a culture of innovation within a company and support the development of new ideas and initiatives. They can promote best practices in innovation, encourage the exploration of new technologies and business models, and help build a culture of creativity and risk-taking. By taking a proactive approach to innovation, NEDs can help to ensure that the company is well positioned to drive growth and stay ahead of the competition.

To enable NEDs to support them in driving growth and innovation, companies must give them the resources and support they need, including:

• regular training and education for the company's staff on innovation and growth
• access to relevant information
• the time and resources they need to carry out their responsibilities.

Companies should also be transparent about their efforts to drive growth and innovation, and report regularly on their progress in this area.

For more information, email me or call me on 020 7099 2621.