Why consider hiring a Non-Exec Director (NED) at a specialist media business?
It’s tempting to think that only PLCs need Non-Exec Directors, but there are many benefits for small or mid-sized privately owned businesses to bring in an external view.
I have to declare an interest here, as since 2018 I have served as NED at three specialist media businesses, ranging from £2-20m turnover. But I genuinely believe that such businesses gain significant value from an external, experienced view. Especially founder-led organisations that have grown through the instincts and knowledge of one individual.
The advantage of an NED over a short-term consultant or adviser is that they typically stay in post for four or more years. So they can see the impact of strategic and operational decisions and become familiar with the market sector the company operates within.
What advantages can an independent Non-Exec Director (NED) bring to a specialist media business?
1. Provide objective external perspective
An NED with broad business experience has seen alternative successful business models, so can advise on the mix of business. Being one step removed from the operational detail and personalities of the team, they can see the big picture and advise on the overall direction.
2. Bring in best practice and benchmarking from outside the company
NEDs who are actively involved with other media businesses in adjacent sectors can identify best practices that can be successfully applied. They can also benchmark key measures, such as subscription conversion and retention, sales packaging, organisation structure.
3. Challenge projects and investment proposals
An independent NED can challenge new projects and investment proposals, encouraging senior leaders to develop a strong business case and robust customer proposition. This reduces the risk of “gut-feel” investment choices that underdeliver on their expectations.
4. Identify and mitigate risks
Entrepreneurs are natural optimists. But an independent NED can identify pitfalls such as cyber or technology risk, succession issues, competitor activity or customer shifts, or broader economic or regulatory change. Forewarned is forearmed, so when a risk materialises, having a mitigation plan in place prevents it becoming an emergency.
5. Establish objective measures, KPIs and financial accountability
Media founders know their markets and exploit new opportunities by instinct. But to grow beyond a certain size, you can’t rely on one person’s gut feel. Setting up competitor tracking, measuring your market and setting Key Performance Indicators (KPIs) in sales, subscriptions, events and other activities helps the entire senior leadership team spot problems and act fast. It even means the founder can go on holiday occasionally. A strong NED will understand what critical measures a specialist media company needs to grow consistently.
6. Chair Board meetings to free founder to contribute
Formal Board meetings are an invaluable forum to discuss strategic options, prioritise investments and make choices about the portfolio of brands and products. Having an independent NED to chair the meeting will ensure all issues are aired, everyone can speak and a consensus is reached. This allows the founder (and other key staff) to fully contribute their knowledge and opinions. Clear concise minutes and action points mean decisions are implemented quickly and your senior team are accountable.
7. Develop and mentor the senior team
Board meetings are most productive with between 6-8 participants. Including your heads of content, marketing, sales, events and tech in the meeting helps develop their strategic skills, so they move beyond siloed thinking. It ensures that decisions are owned by the entire group and more likely to be supported once implemented. An NED can provide mentoring for senior leaders outside of formal meetings, sharing experience and best practice from others in the sector.
8. Mediator with partnerships or acquisitions
You may have no plans for an exit. But if you are approached by a potential buyer, it can be helpful to have a more neutral person who knows the business to consult on the strategic implications of a partnership or sale.
How to find your Non-exec Director?
While industry and sector experience is important, the best NEDs have excellent interpersonal skills. The art is in challenging, persuading and being a critical friend at formal meetings or one to one without verging into confrontation or grandstanding. Some specialist sites to advertise your role include Nurole and Women On Boards, as well as general recruitment sites like LinkedIn. Whether you rely on personal networks or a recruiter, build in the time for face to face (and I mean in person) meetings with shortlisted candidates, ideally with several of your senior leadership team. And take up references from your peers who have seen this individual in action.
What is the cost?
The base time investment for an NED is in planning and running formal meetings. But they often deliver most value through informal discussions. These could be 1-1 with the CEO or founder and key senior leaders, or in reviewing proposals, financials or KPIs. So agree upfront the number of days per year that you expect your new NED to contribute to the business. A good starting point is to budget for £10k pa for eight days a year. Some NEDs might prefer a fixed fee for board meetings and an ad-hoc rate for one to one consultation.
What next?
If you are considering adding an independent NED to the Board of your specialist media business, you are welcome to get in touch for an open conversation over a real or virtual coffee.
About the author
Carolyn Morgan has acquired, launched, built, and sold specialist media businesses in print, digital and events. She now advises niche consumer and B2B publishers on developing new products and digital revenue streams as a consultant and NED.
Find out more about the advice we provide for publishers