A Non-Executive Director (NED) sits on a company’s board but doesn’t handle day-to-day management. Instead, they bring fresh thinking and oversee how the business is run. It’s a role that carries real responsibility – you’re accountable for the company’s success.
So what makes a good NED? Here are ten qualities worth developing.
- Stay objective
Can you look at company performance without getting caught up in emotion? This sounds simple, but it’s harder than you might think – especially when you care about the outcome.
Good NEDs keep a clear head. They assess what’s really happening, not what people hope is happening.
- Keep things confidential
The MD or CEO will use you as a sounding board. They’ll share concerns, test ideas, and ask for advice on sensitive issues.
Whatever gets discussed stays between you. Trust is everything in this relationship.
- Bring real experience
Your value often lies in what you’ve seen elsewhere. Maybe you’ve guided another business through rapid growth, or you know an industry inside out.
This experience helps companies navigate unfamiliar territory. When they’re facing something new, you’ve likely seen it before.
- Stay independent
Independence isn’t the same as objectivity – though both matter. As an outsider, you can challenge assumptions that insiders might miss.
This independence reassures not just the board, but shareholders and other stakeholders too. You’re there to ask the awkward questions.
- Be tenacious
Spotting potential problems is one skill. Actually getting answers is another.
Good NEDs don’t let things slide. If something doesn’t add up, they keep asking until it does. Politely persistent beats politely quiet every time.
- Show resilience
You’ll sometimes need to hold your ground, even when others disagree. Not every board discussion ends in consensus.
If your experience tells you something’s wrong, stick to your view. That’s what you’re there for.
- Put the time in
Being a NED isn’t just turning up to quarterly meetings. You need to understand the business properly – the market it operates in, the challenges it faces, the opportunities ahead.
That might mean visiting sites, attending industry events, or simply spending time with the team. You can’t add value if you don’t know what’s really going on.
- Prepare properly
Reading the board papers is the bare minimum. Good NEDs go further.
Look at what’s coming up. Where can you add insight? If there’s a topic you’re not familiar with, do some research beforehand. The more prepared you are, the more useful you’ll be.
Platforms like governance360 can help here – keeping all your board materials organised and accessible means you can prepare properly, wherever you are.
- Listen well
Communication matters in any business role, but for NEDs it’s especially important. The key is listening to understand, not just to respond.
A bit of empathy goes a long way. When you understand what someone’s really saying – not just the words they’re using – you can offer better advice.
- Have the confidence to challenge
Some of the toughest board meetings turn out to be the most valuable. Challenge and debate lead to better decisions.
Don’t challenge for the sake of it, but if something doesn’t make sense or goes against your experience, speak up.
Remember: “I didn’t know” isn’t a defence if things go wrong. You’re accountable. So ask the questions you need to ask.
Getting it right
Being a good NED takes work. It’s about bringing value through experience whilst staying independent enough to challenge when needed.
If you’re stepping into a NED role – or looking to improve how you fulfil it – focusing on these qualities is a good start. And making sure you’ve got the right tools to stay organised and informed (that’s where platforms like governance360 can help) means you can focus on what really matters: helping the business succeed.