Marian Evans, the Managing Director at Elevate BC Ltd., shares insights on the key attributes of a great non-executive director (NED) in a recent article. According to Evans, a great NED should possess independence, objectivity, strategic insight, industry knowledge, financial acumen, governance expertise, effective communication, interpersonal skills, risk management expertise, commitment, and ethical integrity. These qualities are crucial for providing governance, oversight, and strategic direction to an organization.
However, Evans also highlights common pitfalls that NEDs should avoid, such as groupthink, dominating discussions, conflicts of interest, neglecting preparation and engagement, resisting change and innovation, micromanaging, poor communication skills, lack of accountability, inflexibility, and self-serving behavior. These behaviors can hinder the effectiveness of NEDs in fulfilling their roles within a board.
Evans emphasizes the importance of independence and objectivity in decision-making, strategic insight in focusing on long-term objectives, financial acumen in evaluating financial risks, and governance expertise in upholding high standards of accountability and ethical behavior. Effective communication, interpersonal skills, risk management expertise, commitment, and ethical integrity are also essential attributes for a great NED.
In addition to these attributes, Evans stresses the significance of avoiding behaviors that can undermine the effectiveness of NEDs, such as conforming to groupthink, dominating discussions, having conflicts of interest, neglecting preparation, resisting change, micromanaging, ineffective communication, lack of accountability, inflexibility, and self-serving behavior. By being mindful of these pitfalls, NEDs can contribute effectively to the governance and strategic direction of an organization.
Evans encourages professionals to consider these attributes and pitfalls when aspiring to become NEDs, as they are critical for driving organizational success. By maintaining integrity, expertise, and interpersonal skills, NEDs can effectively contribute to the governance and strategic direction of organizations. Evans’s insights provide valuable guidance for individuals seeking to excel in non-executive leadership roles.
