SMALL and medium sized businesses (SMEs) are being urged to appoint independent non-executive directors to ensure they maintain success and vision when faced with difficult challenges that might threaten the future viability of the business.

Clive Parrish, of Douglas-based CDP Associates, said: "Skilled and experienced non-executive directors (NEDs) can be worth their weight in gold.

"All too often a significant number of SMEs don't really appreciate or recognise what has made them successful and this can make them vulnerable when the business encounters difficult times -  this is when the independent and impartial input of an experienced non-executive director can prove invaluable.

"NEDs have responsibilities as directors and are not just consultants giving the benefit of their advice or experience, they share the responsibilities of board decisions with the senior executives, they are part of the team.

"An experienced non-executive director can help the board become more effective and help it set clear action plans and guide directors through the process of getting things right first time."

Mr Parrish added: "Entrepreneurs are often confident and driven, know what they want and are invariably tuned into telling their employees what's wanted of them.

"This can be innovative, even inspirational, but the entrepreneur will sometimes mistakenly assume employees have understood and 'bought into the vision'.

"All too often a board is so immersed in the day-to-day running of the business that executive directors decide what needs doing but then send out instructions with minimal constructive and objective analysis or discussion.

"Increasingly, a business is often something of a minefield but, with the appointment of an experienced NED, explosive outcomes can often be avoided.

"The NED can keep the board on the right track and ensure board meetings are constructive gatherings, rather than something to be rushed through as quickly as possible."