There are two levels of leadership in most organisations, executive and non-executive. Executive leaders are usually responsible for the day today management, and non-executive leaders act in an advisory or “occasional” capacity. Non-executive leaders often meet as a Board, whether of a business, a charity, or even a school.

Usually, non-executive leaders are responsible for the strategy, and executive leaders for the operations of the organisation. Board meetings are often the time and place where strategy is determined and translated into operational aims and objectives. For example, the non-executive leadership may take the strategic decision to start working in a new territory. It is up to the executive team to agree operational aims and objectives, such as sales targets, market share, or brand awareness.

Ideally, non-executive leaders are chosen because of their experience, wisdom, and ability to consider long term implications. Good executive leaders are able to act swiftly on short and medium term issues.

To me, the most interesting aspect of being a non-executive leader is the monitoring of operational activities. The biggest mistake a non-executive leader can make is to get too involved in operational details; equally, it can be disastrous if the executive leaders start to change the strategy.

The best saying I heard about being a non-executive leader was “Noses in, Fingers out”. It has been excellent advice.

Books have been written about this, but in response to a request, here is my “back of a matchbox” analysis.

Non-executive Officers usually sit on a board, to agree and monitor the strategic plans of an organisation. Executive Officers are responsible for the day to day activity of the organisation.

Those who serve on the board, and are involved in making strategic decisions, have corporate responsibility. It is essential that these folk know who they are, and their legal obligations.

If you have a sound bite you can add to help with this, please comment!