Design industry business guru Ian Cochrane talked about the value of engaging with a non-exec.

Referred to as an ‘Iron Fist in a Velvet Glove’, Ian Cochrane is the man chosen by many a well-known design business to move their business onto higher echelons. Designer Breakfasts believe that having a left-brained business mentor can make all the difference to your sanity as a right-brained creative running a business. Ian told this breakfast audience that he has met designers with great creative ‘right brain’ abilities who have equally great logical ‘left brain’ abilities, but they are rare.

Ian said that a non-exec speaks volumes, that “they can be a partner in your business and two heads are better than one. They can also help you keep a cool head in a crisis. But to get the most value out of non-execs you have to be open and honest. It takes guts to bring someone into your business. You have to be open about weaknesses, so having courage is hugely important.” The job of a non-exec is to give frank and honest feedback.

So how do you find the right person? Ian suggested that you should look for someone who has a different skill set to yours whether that is finance, marketing, or branding; left brain thinkers can benefit from the advice of right brain thinkers who can see things in a different light. Another selection tool that Ian advised using is the acid test - would I want to sit beside this person on an airplane for 7 or 8 hours? “If you’re going to bring someone into your business, you have to want to spend time with them.” Other qualities to look for are that they have a wealth of relevant experience as well as a high level of trust and integrity with strong references.

Every good design company has had a client that Ian described as being a ‘cash cow’, one that has defined them, brought them fame, brought them cash. But every company at some point can also hit a brick wall. Non-exec mentors can provide leadership coaching, help companies improve their style, point out something hasn’t been spotted. Sometimes the director of a company may get blindsided and needs someone to jolt them out of it. Or they can help them take difficult decisions.

In Ian’s role as a non-exec, the areas that he gets involved with are people, strategy and risk. It is important to assemble the right team. Sometimes he (or she) will look at employees the company is thinking of promoting, he helps find new talent, recruits people, offers another opinion of candidates being interviewed, sometimes he suggests people he knows, or the hard part, getting rid of long-time employees that are no longer pulling their weight. He sets performance goals, strategies and introduces new incentive schemes so that everyone can hit the ground running.
Another role of a non-exec mentor is to facilitate mediation. “Sometimes two people who work together may fall out and the non-exec mentor can help them resolve their differences,” Ian said.

Ian told of one company owner who was complaining that staff never offered any quality ideas. Ian went to the company and observed what was going on. He quickly saw that the owner was doing all the talking and not listening to the employees. He offered one piece of advice, “You have to start receiving instead of transmitting.” That solved the problem.

Another client asked whether he should hire a finance director. Ian said yes. He helped him interview and select that person and thanks to the financial director’s left brain organisational skills, it led to a management buyout. Previously the owner held 100% of nothing and then he became a multi-millionaire. “If all the shares are held by one person,” Ian believes, “that company is not going to grow.”

So what is the pay rate for a mentor? “Between £1,000 and £2,000 a day is the consultancy going rate, but non-execs tend not to work like that,” Ian said. The day rate is of quite low value, but Ian suggested to ask the client what their day rate is and charge accordingly. Another way is to take a stake in the business, that way if the company is in difficulty they can afford to keep you on.

The role of a non-exec doesn’t have to be a huge commitment, it can last anywhere from 5 to 10 years. It is not for life and can be terminated on a month’s notice, but it can be the best investment that a company makes.

Ian concluded by saying that it takes two to tango and striking the right business partnership is a lot like dancing. But it can be invaluable if the shit does hit the fan, which it sometimes does, and it is difficult to foresee things that are going to go wrong. A good non-exec can be there to throw you a lifeline.

“How many of you are non-exec directors to their clients’ businesses or to other design businesses?” Ian asked the audience. Two put up their hands. Mike Abrahams said that he’s a board director for a client’s business, his different skills enable him to see the problems from a different angle – as designers tend to – and his client finds it valuable. Perhaps this potential is worth thinking about.