directors; Appointing the board of directors. Key responsibilities Non-executive directors have responsibilities in the following areas, according to the Review of the role and effectiveness of non-executive directors (the Higgs report), published by the British government in 2003: Strategy: Non-executive directors should constructively challenge and contribute to the development of strategy. As an external member of an organisation, the NED may have a clearer or wider view of possible factors affecting the corporation and its business environment, more-so than executive directors. Performance: Non-executive directors should scrutinise the performance of management in meeting-agreed goals and objectives and monitoring and, where necessary, removing senior management, and in succession planning. Risk: Non-executive directors should satisfy themselves that financial information is accurate and that financial controls and systems of risk management are robust and defensible. People: Non-executive directors can benefit the corporation's and board's effectiveness through outside contacts and opinions. Helping the business and board connect with networks of useful people and organisations become an important function for the NED to fulfill. NEDs should also provide independent views on: Resources Appointments Standards of conduct Boards (and the non-executive directors on them) also have a responsibility to evaluate their own performance. Reasons for undertaking a board evaluation might include: to address specific issues; to benchmark performance against other companies; the need to ensure that the board is doing the best it can; and the need to be seen to be doing something. Much has been written about how best to go about evaluating board performance and it remains a key topic of discussion. Negative and positive contributions The Institute of Directors in New Zealand outlines ten clear benefits that independent directors can bring to a start-up and high growth business. These are They bring an objective viewpoint to the board They are unlikely to have any family or majority ownership ties to the business They can cast a critical eye over the business without preconception or prejudice They are also able to act in the capacity of counselor, sounding board and devil's advocate They bring a one-off business knowledge and experience in many areas Many start-ups and high growth businesses tend to operate in a vacuum without looking at outside forces Outside directors introduce a fresh, and usually innovative, perspective They may compensate in some of the key areas where management may be weak The outside director may act a bit like a consultant They