As we reach a new era in business, a generation of leaders and executives are retiring. This is leaving holes and inefficiencies in organisations. To ensure your business is ready for a transition of new leadership, follow this checklist to make sure you’re prepared.
If a proper transition plan is followed, the hiring of a new non-exec director can integrate very smoothly with little friction.
For employing a non-exec director successfully, follow the checklist outlined below.
Step 1 – Timing
Allow plenty of time to transition between NEDs. Rushing anything in business is risky, especially something as important as transitioning someone onto the board. Map out a minimum of a few months to allow for a smooth transition.
This transition should also ideally not come at a busy time for the organisation. Bringing someone onto the board needs everyone’s fully attention so it needs to be scheduled in when everyone can give it ample attention.
Step 2 – Schedule
A comprehensive schedule of what needs to be achieved by certain dates should be created. Assuming you’ve given yourself enough time, this should include a period where the new NED can shadow and get to know the organisation.
It can be beneficial to allow the NED the opportunity to monitor different departments in the organisation before they officially start. This means when they do take over, they have a clear understanding of what’s going on and can make an impact right away.
Schedule in meetings with current executives and other team leaders during the transition so the NED gets familiar with how the current processes and strategies are used.
Step 3 – Initial Impact
The initial few weeks of a new NED joining an organisation are very important. This is an opportunity to provide them with support and resources but let them start to evaluate and understand the company. You don’t want to over-manage or impact their decision making. The whole purpose of an NED is to bring in new opportunities and strategies so limiting their reach will cause friction and create inefficiencies.
Step 4 – Review
This is often forgotten about but reviewing a shift in leadership is something necessary and vital. It’s important to see how a new NED has integrated into the business and what ideas they have suggested. This process will help ensure you can identify what areas their focus is on and how best the company can prioritise and manage this.
Looking to transform your business? Contact us today to see how hiring an NED can help.