Recently we wrote about how to gain your first Non-Exec Directorship (check out our blog pages) following on from that we wanted to look at the impact having a NED (Non-Exec Director) can have on a company, with attention to tech leadership.

First, it’s important to look at some of the general benefits of a NED:

Leadership and governance experience
Leading a company of any scale is a challenge, having the skills and resources at hand to make that as easy as possible is a real boost to making sure the organisation runs smoothly.

It can also be a big help when a key member of the executive management team changes, as having a Non-Exec Director to offer a little advice, especially if they worked with the previous employee, can make the transition easier, and a less disruptive time for all.

Questions the management team
Every good leader needs to be questioned, are they heading in the right direction, are they leading in a sustainable and productive manner, and are the making the most of the available resources? Having a NED on board can provide someone to be asking those questions, without the pressure of reporting directly to the person they are questioning. This means they don’t feel the same pressure a direct report might feel to behave a certain way or to avoid ruffling a few feathers.

Knowledge of how departments need to link together
Communication is key to the successful running of a company, but if you are too close, it can be hard to see if the right communication is taking place, and if it isn’t, how to make it happen. Having someone invested in seeing the company do well, but without the same daily close connection as full-time employees, is a big help in bringing issues and improvements to light. Companies can find their departments become siloed and don’t know how to break down the walls between departments, having a NED there can be a strong first step to managing that process.

Likely to be reached out to for networking/industry events
Networking and getting the name out there is a key part of many businesses’ growth. Reaching out to new people, events, publications to raise awareness of what a company is doing and such like takes time and key resources, having someone be approached and able to recommend you, makes companies look more legitimate but also saves those resources to be spent elsewhere. This can accelerate growth for many organisations and add weight to their proposition.

While there are many more general advantages of a Non-Exec Director then those listed, a tech specific NED can bring a lot to companies, especially tech-based companies:

Familiar with key hurdles and culture of the tech industry
Every industry has a unique culture, so having someone who knows the culture, what is expected of companies, how to portray themselves and how to make their own impact on that culture means companies can hit the ground running and make sure they are moving in the right circles. This can be great for newer companies, or companies expanding with new projects and propositions. In the current market, and with so many new ideas springing up all the time, it’s so important to kick things off strong and to keep that momentum going.

Specialist knowledge (and interest) in developing areas/new challenges
The landscape of technology is always changing, and fast. So, with new laws and legislation (like GDPR or Article 13) often in the works, having someone who is familiar with new updates and changes is always useful. For many the ideal NED will make themselves aware of this due to the range of companies they work with, so they can best advise them all on how to make sure they are meeting expectations and legal requirements.

Questions the product and helps work out if there’s a market and how to reach that market
Working near an ambitious project can lead people to lose sight of how impactful a new product could be, and who would be the best target market for such a concept. Having someone such as a NED who is familiar with other companies and the challenges they face, can make sure when a product hits the market, it is well packaged and designed for its target audience based on their needs and information you have on them, whether general public, or other businesses.

Can link companies to potential suppliers/partners/ recommend them
Finding the right supplier can have numerous hurdles as companies present their best side when trying to win business. Additionally, it may take time to find a good fit for meeting a company’s needs, budget and work style. Having someone who is familiar with those suppliers can give answers to some of those issues with minimal effort or time, allowing for better relationships to suppliers to be built, as well as making progress faster.

While there is a lot to consider when appointing a Non-Exec Director, so much can be gained from a good appointment.

To learn more about appointing a NED, or for help in appointing, email This email address is being protected from spambots. You need JavaScript enabled to view it.