Choosing a director
Check that the directors you plan to appoint have the right skills and expertise.
Choosing the right company directors is essential for business success. They can be expensive, so they must add significant benefits, values, and skills to the business.
For example, if you run a technology business but don't have a marketing background, it makes good business sense to choose a director with marketing skills.
Determine the skills your business needs from directors
You could create a chart to determine what skills your business needs to move ahead and grow. List the skills that your management already has and those you need to bring on board. Identify your ideal selection criteria, eg, x years' experience in y industry, qualified to z level etc.
Ideally, directors will:
- bring new and specialist skills and expertise, or a deep understanding of the business's product or market
- be able to lead and motivate staff
- be suitable for representing the business at industry events, customer meetings, and shareholder briefings
- have a network of contacts within the industry and introduce potential partners and customers to the business
Choosing the right person to join the board can help ensure that it will make decisions that will encourage the long-term security and success of the business.
Choosing non-executive directors
When choosing non-executive directors, there are other qualities that are worth looking for, including:
- independence of mind
- impartiality
- wide experience
- proven business acumen
- good judgement
It is important to consider the balance of skills, experience, and personalities when putting together a board of directors. It is also worthwhile considering whether potential directors will fit in with the existing business culture.