Anyone Entrepreneurs Suffering From Whatifitis?
Companies often cast a suspicious eye on the idea of bringing onto the board non-executive directors. This fear and wariness develops because of exposure to an insidious and debilitating disorder: Ignorance.
OK, it seems somewhat ironic, accusing an entrepreneur of fear. Someone with the vision and the courage [two essential entrepreneurial qualities] to start up a business can hardly be defined as fearful. Yet it seems that once the giant leap forward has been made and the company is up and running, subtle changes become evident, especially when someone suggests bringing in outside support and advice in the persona of a non-executive director. The CEO often views the prospect of new blood with suspicion, suffering from what we might term whatifitis.
What if this proposed NED gets way above his or her station?
What if they offer advice that directly conflicts with the direction I think we should be taking?
What if they simply duplicate the skills and expertise already sitting around the table?
What if my grip on the company is weakened by an NED presence?
There’ll be many other what-ifs swirling around in a CEO’s mind, but the essential point is a simple one: whatifitis is a condition brought on by prolonged exposure to Ignorance.
As with all illnesses, your primary objective should be in tackling the root cause while also treating the symptoms. Remove the ignorance, and the fear will disappear.
So let’s deal with the four symptoms above by tackling the ignorance head on.
What if this proposed NED gets way above his or her station?
The simple answer is that they can’t. Non-Executive Directors are brought in with specific briefs, working to objectives determined by you and your executive board members. The NED role will be determined and agreed upon before they take up their place around the table. Manageable parameters make for clarification of areas of responsibility.
What if they offer advice that directly conflicts with the direction I think we should be taking?
It would be an arrogant CEO indeed who ignored arguments that are lucidly and sensibly presented. The reason you brought NEDs in in the first place was to offer a fresh and possibly different perspective. If they see opportunities you might not have considered, all the more reason to value their ideas. Perception, Experience and Objectivity are all part of an NED’s DNA. Only someone terminally ignorant would choose to ignore such contributions. You might not take on everything they suggest, but at least they’ll have offered you pathways you hadn’t thought of.
What if they simply duplicate the skills and expertise already sitting around the table?
Why would they? You’ve appointed them. You wouldn’t be so lacking in strategic vision as to bring in an NED who is merely a clone of someone already on the board. You want freshness, someone who can advise you in areas you’re unfamiliar with. Someone with a contact list to die for.
What if my grip on the company is weakened by an NED presence?
The question itself is a contradiction in terms. A CEO with the foresight and the resolve to bring in people whose expertise can only strengthen the company and raise both its profile and its profitability would inevitably increase his control of the company.
An ancient Chinese philosopher once wrote:
To know that you do not know is the best. To think you know when you do not is a disease. Recognizing this disease as a disease is to be free of it.
Ancient Chinese philosophers would have made great NEDs!
ABOUT THE AUTHOR
Ian Wright is the Founder and CEO of VirtualNonExecs.com and has worked with 100s of companies to appoint non-executive directors and chairs.
He sits on the boards of three privately held companies as non-executive director and has built multiple businesses that have gone on to sell to private equity and trade buyers.
VirtualNonExecs is a global membership network