At Scaled, one of the questions we hear most frequently from founders and CEOs is deceptively simple: ‘What does an NED actually do, and do we really need one?’

For leaders used to building from instinct, operating at pace and carrying the weight of every decision personally, the concept of bringing in external experience can feel unnecessary – or even intrusive. But as our Founder, Simon Penson, explains in the video below, the right Non-Executive Director can fundamentally change the trajectory of a company.

The Power of Lived Experience in the Scaling Journey

One of the most important insights Simon shares is that scaling doesn’t require you to navigate an uncharted path. The road exists. Others have walked it. And the most efficient way to grow is to surround yourself with people who have already lived the challenges you’re about to face.

In Simon’s journey scaling a large agency, bringing in external experience wasn’t just helpful, it was pivotal. The presence of someone who had built, exited, or transformed businesses before created a level of clarity and confidence that would have been impossible to manufacture internally. It meant fewer avoidable mistakes, more informed decisions, and the ability to move faster without second-guessing every strategic step.

This is the true value of lived experience. In life and business, it may be the most valuable asset you can access – because it reduces risk, accelerates learning, and increases your probability of success.

A Great NED Behaves Like an Owner

Another misconception is that NEDs sit on the sidelines, offering abstract advice. In reality, the best Non-Executives behave like owners. They care deeply about outcomes, commit to the long-term health of the business and engage at a level that meaningfully strengthens the leadership team.

Sometimes that means rolling up their sleeves in moments of pressure or opportunity. Other times it means stepping back, providing perspective and acting as a calm, objective sounding board. But at all times, a strong NED brings alignment, clarity and focus.

Increasingly, many NEDs also hold equity or options. This doesn’t just incentivise them to contribute at the highest level – it aligns them directly with enterprise value creation. Their success is tied to your success, which reshapes the dynamic entirely.

Enterprise Value: The Core KPI of a Non-Executive Director

If you want to understand the true purpose of an NED, it comes down to one thing: increasing enterprise value.

When you anchor a Non-Executive to this outcome, everything else begins to take shape. Decisions become more strategic. Priorities become clearer. The business shifts from short-term firefighting to long-term value creation. And leaders gain the confidence to make big decisions faster, because they have someone beside them who has been there before.

This objectivity is powerful. Founders are inherently close to their businesses – emotionally, operationally and financially. A great NED is close enough to care, but far enough removed to think clearly. That clarity is often the difference between a company that grows and one that simply works hard.

Why Investors Install NEDs Immediately

There’s a reason almost every private equity firm, growth investor, or institutional backer appoints NEDs the moment they invest. They understand something many founders only discover later: businesses with experienced Non-Executives achieve more predictable, scalable, and valuable growth.

It’s not about bureaucracy. It’s about improving the odds of success.

NEDs ensure that:

  • The business is working on itself, not only inside itself
  • Strategic plans actually get delivered
  • Senior leaders remain focused on what truly drives value
  • Big decisions happen at the right pace, not after months of internal debate

Investors know that the patterns of scale repeat across sectors and markets. With the right NED in place, companies benefit from decades of pattern recognition on day one.

The Real Question Founders Should Ask

The conversation, therefore, isn’t whether you should have an NED. It’s whether you want to accelerate your journey, avoid the pitfalls others have already stepped in, and build a business with real, defensible enterprise value.

At Scaled, this is exactly why our NED practice exists. We bring lived experience, strategic clarity, and an owner-mindset to every engagement. Not theory. Not passive commentary. But practical, hard-earned insight that helps founders make better decisions, faster.

If you’re scaling an agency, SaaS or B2B services business and want to understand whether an NED could materially change your growth trajectory, we’d be happy to explore that with you.