director's chair

[Director’s Chair] Does your board provide genuine business advantage or might it feel like an unnecessary luxury for smaller businesses?

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  • Raymond Sykes

Raymond Sykes Directors Chair Hallcroft Finance Value of business relationshipsIn this month’s Director’s Chair, our non-executive Director, Raymond Sykes, gives his views on discipline in the boardroom.

Hallcroft Finance is on a carefully managed growth trajectory and one of the first actions in our five-year business plan was to form an effective board, including non-executive directors (NEDs).

Maintaining NEDs is not a legal requirement for privately held companies like us but we wanted to help the executive team make good decisions, based on better-informed knowledge.

The discipline of preparing regular board papers really concentrates the mind, requiring a deliberate commitment of time beyond addressing day-to-day business concerns.  Board papers also stimulate discussion and challenge; with better decisions made as a result.

There are no legally defined responsibilities for NEDs in a company like ours but we felt it no less important that roles should be both well-defined and documented. At Hallcroft, we have prioritised;
Providing guidance and support to the business around corporate governance.

– Ensuring accountability by setting goals and objectives for the management team.
– Encouraging high standards of reporting on all business matters.
– Maintaining a regular forum for discussing business problems and challenging the team to find solutions.
– Involvement in strategic planning; helping the management team shape the business and adjusting the long-term vision of the company if needed.
– Bringing in business connections; investors, contacts, personnel and clients.

Some in our sector express reluctance about bringing in outsiders to over-see their business; often citing fear of relinquishing control.  At Hallcroft, we take a different view.

We welcome the challenge our non-executive board brings and see their involvement as providing critical support on our journey. It is also proving to be a sound investment, helping us to grow the business in a more collaborative and strategic way.

We share these insights into our business so you can get to know us a little better. Our webinars are also an opportunity to learn more about us and what we do. So why not join us on Tuesday 5 October, 08:30 BST for our first breakfast webinar and find out some more.

Register here for our webinar ‘Property Development Finance: To what extent has development finance increased to 70% LTV?

Author: Raymond Sykes