How non-execs can help businesses go global

With stagnant growth in the UK – and few predicting a marked improvement any time soon – many businesses are looking for opportunities elsewhere. You only need to look at the country’s largest companies to see the scale of the opportunity, with around three-quarters of the FTSE 100’s earnings coming from abroad.

While it may be more difficult for smaller and medium-sized companies to follow the same path, there are clear potential benefits: a more diverse customer base, reduced reliance on a single market, and greater opportunity for further growth. For many business leaders, all of that may make the decision seem like a no-brainer.

We recently explored whether that is the case at the latest instalment of our Non-Executive Director (NED) Forum. The initiative, which we proudly co-founded with KPMG in early 2024, was born out of a shared vision: to support both aspirant and experienced non-executive directors across Scotland, bringing them together with the businesses that will benefit from their experience, knowledge, and skills.

Internationalising is not for the faint of heart, says Sophie Randles

Non-executive directors have always played a crucial role, offering strategic input, an external perspective, and upholding good governance. As David Slater from KPMG succinctly put it: non-execs are an opportunity for any company to bring greater diversity of thought, experience, and perspective into the boardroom and, therefore, the business. And, when it comes to decisions that are possibly both high risk and high reward, all of these qualities are essential.

We heard from Hyble and Raven Controls - two Scotland-based businesses that have successfully expanded internationally. Both spoke about the invaluable role non-executives played at different phases of their journeys and the returns they saw in the form of good advice, the wisdom of people who had been in similar situations themselves, or even just someone to listen when things weren’t going to plan.

It worked out well for both these companies, but it was clear that internationalising is also not for the faint of heart. The UK is far from alone in being a tough environment - whether it’s tariffs in the USA; China’s language, cultural, and technological barriers; or India’s notorious bureaucracy - and it’s difficult to think of a time when the world has been more multipolar.

So, wherever you may be looking, it’s more important than ever that deciding to expand internationally is carefully considered and managed in the right way. And there is huge value to be found in having experienced voices from outside to help navigate that journey, acting as a steady hand, a critical friend, and a strategic compass for the business.

Non-executive directors can offer strategic input to businesses looking outward (Picture: Adobe)

Perhaps most important of all is the independent point of view non-executives can offer. They are in the position to ask questions executives may not be able to – whether being more international is the opportunity it appears to be; if it could end up being a threat to the business; and why, if a company is struggling in the UK, the situation would be different anywhere else.

Without a vested interest in the business, they can also look at the situation from a more objective position. That allows non-executives to assess the diligence of the leadership team, question any assumptions, and determine whether decision-makers have properly tested their theories before pursuing a potentially very costly course of action.

Internationalisation is a huge opportunity – but it can also present big risks. A close group of people you can trust and turn to for advice and support is essential. And sometimes the voices you need to hear most are those from outside of your business, who can not only offer guidance but challenge you at the right times as well.

Sophie Randles, director, Livingston James​