Information available
Non-executive directors’ contribution will also depend on the information that is readily available to them as directors. This will be influenced by the quality of the organisation’s information systems, and also the willingness of executive directors to supply information about their activities.
Role of board
The corporate governance reports stress the importance of non-executive directors being involved in strategic decisions. If non-executive directors are involved in formulating strategy, they can fulfil what Sir John Harvey-Jones sees as their key role, of warning of potential problems and hence preventing trouble. However board meetings may focus almost entirely on current operational matters and short-term operational results. In addition a focus at board meetings on short-term results may mean that non-executive directors assess the performance of the organization using short-term indicators and its management, and do not focus on longer-term issues such as changes in product mix or re-engineering of the organisation’s processes.
