In 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.