Influencing the Board as a Non-Executive Director
Joining a new company as a Non-Executive Director (NED) is an intriguing challenge. Often, your appointment is made by the Chair, CEO, or Managing Director. However, this doesn’t guarantee the rest of the senior leadership team agrees with the decision or was even aware of it.
C-suite roles are typically occupied by highly experienced individuals with strong personalities. Their responsibilities include advancing the business with ideas and stewardship from their respective divisions, while also protecting and representing their interests.
With this context, how can you influence the board as a NED and gain support from other members? This blog provides some guidance on achieving just that.
Listen and Observe
The first board meeting is not the time to introduce sweeping changes or make significant observations about the business operations. It’s a time to listen, observe, and allow yourself to formulate your thoughts. Providing insights on potential improvements without fully understanding the business is premature.
Understand Board Members
Equally important is understanding how to interact with each board member to gain support for your ideas or avoid upsetting anyone. Observe each member’s personality type and consider how they prefer to receive feedback. For instance, would the CTO appreciate a pre-meeting discussion about how a particular software could improve operational efficiencies? Nigel Risner’s book, It’s a Zoo Around Here, categorises personalities into four types: Monkeys, Elephants, Lions, and Dolphins. Each has its preferred way of receiving feedback, being managed, and collaborating with colleagues.
Build Your Internal Network
Whether or not the board members were aware of your appointment, building internal networks is crucial. Arrange meetings with the entire C-suite team at their convenience. Ask open-ended questions to understand their roles, past experiences, current challenges, motivations, and personality traits.
Convey that you seek their support and that you are an independent consultant there to provide honest feedback based on your observations. Assure them that your role is not to disrupt but to offer a helping hand, providing advice to improve the business.
Engage with Middle Management
Step beyond the board and engage with middle management. Understand their frustrations and their ideas for business improvements. The more knowledgeable you are about the company, the more credible your judgment becomes, making it harder for others to dispute your insights and easier for you to influence them.
Promote Your Experience
You’ve achieved this position for a reason, so don’t hesitate to promote yourself. If necessary, prepare in advance to articulate your introduction. Highlight your career achievements and their impacts on previous companies. This will help solidify your credibility in the eyes of board members.
Maintain Independence
As a NED, it is crucial to uphold your principles. Remember the old mantra, ‘it’s the executives who call the shots.’ The challenge is to remember that you’re not the chief executive and that your role is independent. You are not there to be a ‘yes’ person for the CEO; you must bring balanced judgment to the table, which requires extensive listening.
By maintaining your independence, others will recognise that your sole purpose is the benefit of the business. Providing independent, corporate governance will help others see that you are there for a good cause, making it easier to influence them.
Embrace Your Role
Being a NED can sometimes be frustrating. It is essential to be comfortable with your role and remember that you are there for the greater good of the business.
By listening, building relationships, promoting your experience, and maintaining independence, you can effectively influence the board and contribute positively to the company’s success.
