GARY LUMBY MBE FCIBS MANAGING DIRECTOR
What is the similarity between a shopping trolley and a NED
Journey of a NED • Benefits to Business • Attributes needed • How to become a NED
Why do SME’s need a NED? Time – owners and directors do not have enough time to undertake all the activities that they know they should when running their business. Knowledge - they do not have all the skills and knowledge required in some areas of business – no one does of course Finance - they do not have endless amounts of cash to spend on hiring additional full time resource or on consultants. An external perspective - this is often missing from their business and this creates missed opportunities and leads to wrong decisions being taken. Regulation - they often are challenged by regulatory and macro-economic changes Growth - they are not always able to grow their business as fast as they want.
Provide a part time Executive level resource to support current management team • Meeting existing clients to assist in relationship building and up-selling. • Meeting and introducing prospects. • Undertaking presentations to clients and prospects. • Attending networking events on clients behalf. • Running, attending and speaking at seminars and conferences. • Marketing Strategy– On and Offline, branding and design including vision and values creation. • HR - including recruitment, performance management and reward systems.
Provide a part time Executive level resource to support current management team • Negotiating with professional advisors and suppliers. • Negotiating and advising on funding structures. • Overview and critique of financial performance. • Strategy and business planning. • Corporate governance and risk management. • Assisting in acquisitions and disposals. • Coaching and mentoring of management and staff. • Exit and succession planning.
Benefits • Provide expertise that SMEs do not have or cannot afford. • Cost effective additional resource at exec level. • Adds credibility and professionalism to the management team. • Extensive contact base for introductions and additional sales. • Access to alternative funding sources. • Improves or implements Corporate Governance processes. • Credit Risk Ratings improve • Suppliers and potential clients confidence increases
Benefits • Challenges Directors, Owners and Management. • Identifies cost reduction strategies including sourcing new suppliers • Helps management makes difficult decisions. • Coaching of senior management team. • Training provided to staff such as sales training, client referral marketing and effective networking. • Introductions to existing client base and contacts for new customers and sales opportunities • Provides external view of company separate from existing management.
Attributes needed – 7 Habits • Be Proactive • Build Rapport but challenge • Resilience and Persistence • Positivity and Passion • End in Mind – goals and objectives • Be Present • Connect People
How to build a NED portfolio • Start planning early • Build a large contact base of business relationships both private and public sector • Continuous personal development • Target your ideal client base – PLC V SME’s • Have a clear Customer Value Proposition • Build an evidence database of success • Start networking
How to build a NED portfolio • Start with a Voluntary role eg Charity / Third Sector • Use a recruitment/ search consultant • Join a NED organisation such as In Touch or NED Connextions • Consider taking IOD Director qualifications • Be clear about your price point and why it is correct for your target market • Register a company , build a web site and have marketing material available
How to build a NED portfolio • Use social media to tell your story and promote your capabilities • Seek testimonials • Have a clear methodology for assessing the potential to help clients – Diagnostic • Don’t ever charge for first meetings/ information gathering • Agree scope of works and what success looks like • Easy in and easy out contract • Build Rapport and make a difference • Be positive and proactive – create value
In Touch Network NED Survey 2019 • 45% of NED’s found work via networking and 16% via referral • Charities 15% / Healthcare 12% / Education 12% / Construction 7% • Average period 2-4 years • Average remuneration £11-20k pa • Key skills needed – Sales and Marketing / Finance / Governance
ANY QUESTIONS ? Gary Lumby MBE FCIBS Managing Director Focus on Success Ltd 07500116507 www.focus-on-success.co.uk
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