{"id":2150,"date":"2020-12-04T09:57:59","date_gmt":"2020-12-04T09:57:59","guid":{"rendered":"https:\/\/www.edwarddrummond.com\/?p=2150"},"modified":"2022-05-26T11:24:20","modified_gmt":"2022-05-26T11:24:20","slug":"neds-in-aim-companies","status":"publish","type":"post","link":"https:\/\/www.edwarddrummond.com\/neds-in-aim-companies\/","title":{"rendered":"Finding the right non-executive directors for AIM listed companies"},"content":{"rendered":"

The benefits of hiring executives into their first NED roles<\/strong><\/h2>\n

Some years ago I sat down with the CEO and Chairman of a fast-growing PLC (a global manufacturing business, with a world-leading niche product) to talk about a non-executive role<\/a>. After listening to them for two hours, I had one of those \u201cOh my gosh, of course!\u201d moments.<\/p>\n

I would love to say it was my natural entrepreneurial creativity, but no. In fact it came from a business leader thinking ahead and applying the principles of ‘executive into board’ recruitment to non-executive director (NED) recruitment i.e. define the strategy, look ahead, identify the skills gaps and plan around this.<\/p>\n

We worked on and agreed the search<\/a> priorities, creating a wish-list of skills and experience that would be needed to support the board over the next five years \u2013 a journey that would see the business triple in size. At the time the list included global multi-site reorganisation, re-listing, specific market knowledge (life sciences, aerospace and defence) and someone to act as a mentor and coach to the busiest executives.<\/p>\n

We decided to keep the experience as current as possible and ended up approaching board executives (CEO, CFOs and VP HRs) to test the concept of hiring executives into their first NED role. We hired four new NEDs and\u00a0 the board changed dramatically, helping to facilitate the next stage in the company’s growth. The new recruits brought fresh momentum, new leadership skills and accurate insight as to what the future might hold and how best to get there.<\/p>\n

\u00a0<\/strong><\/p>\n

The need to adapt in turbulent and changing times<\/strong><\/h2>\n

Now in 2020 I am delighted to see that hiring executives into their first NED role is far more widespread, particularly with mid-sized or fast-moving businesses and PLCs. This is excellent news, except that it means our Edward Drummond boast of innovating in this area has now lost its lustre.<\/p>\n

But then came Covid-19, the lockdowns and the current economic maelstrom. Everything has changed and we are busy again, finding and hiring NEDs.\u00a0 What was needed eight months ago, in terms of strategic experience and know-how, already appears to be out of date.<\/p>\n

Some companies have been lucky. They offer the right product or service for the current circumstances. Some companies may need to tighten their lifebelts to survive. But others are growing. And hiring. They are thinking creatively, adapting quickly, calling on relevant experience and introducing exciting new strategies.<\/p>\n

It has brought back memories of my eureka moment all those years ago because forward-looking businesses are asking for the same kind of help from us now.<\/p>\n

So, what is the best NED hiring strategy, not for last February, but right NOW? Where are the gaps in our clients’ businesses?\u00a0 What do they need in today’s weird normal?<\/p>\n

\u00a0<\/strong><\/p>\n

The need for specific expertise and experience<\/strong><\/p>\n

We believe AIM-listed companies should be looking for candidates who can respond fast to change, with smart, relevant ideas. People who have been through turbulent economic times before (although probably not a pandemic!) and have experience of putting survival strategies in place. Who will help your business not only to outlast COVID-19 and Brexit, but take advantage of new situations to thrive and grow. Who can help you reach where you want to be in 3-5 years’ time.<\/p>\n

This is where we have been busy: finding candidates with specific strategic expertise and introducing them to boards that need them, so organisations can be confident that they are doing everything they can at a senior level to survive but more than this \u2013 to thrive.<\/p>\n

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What do non-executive directors bring to the boardroom table?<\/strong><\/p>\n

As company directors, NEDs are usually expected to contribute to:<\/p>\n