How to Tackle the Feeling of Loneliness as a Managing Director

It's Lonely at the Top

Being the owner or Managing Director (MD) of a small to medium-sized enterprise (SME) can feel like you're running a one-person race. While you may have a team working alongside you, the burden of responsibility is uniquely heavy on your shoulders. Decision-making, solving company-wide issues, and navigating through challenges often rest solely on you. It’s common for many business owners and MDs to experience a sense of isolation, sometimes even loneliness.

This loneliness can be mentally draining and affect your ability to lead effectively. Fortunately, one often-overlooked solution is the appointment of a Non-Executive Director (NED). In this blog, we will explore how SMEs can benefit from NEDs, reduce the sense of being a "lonely boss," and ultimately build a more robust management structure.

The Loneliness of Leadership

As the MD or owner of an SME, you're likely no stranger to being the first one in and the last one out. Your day-to-day tasks often extend beyond leadership roles and include firefighting operational issues, managing finances, and even dealing with HR complications. You’re expected to have answers for everything, and that can be exhausting.

The problem is that this dynamic creates a sense of isolation that can lead to poor decision-making, burnout, and stress. As the saying goes, "It’s lonely at the top," and for many MDs, this couldn't be truer. However, just because it’s common doesn’t mean it’s inevitable. Seeking support through Non-Exec Directors can alleviate many of these pressures. After all, a problem shared is a problem halved, and by having a seasoned business expert by your side, you have a critical business friend you can rely on in every season.

What is a Non-Executive Director?

A Non-Executive Director (NED) is a member of the board of directors but not involved in the daily operations of the business. Instead, their role is advisory, helping guide the business's long-term strategic decisions without being bogged down by day-to-day management. This outside perspective can be incredibly beneficial for an MD who feels isolated in decision-making or struggles with internal issues.

NEDs bring experience, wisdom, and objectivity, which can be particularly useful when you're dealing with managing issues that feel overwhelming or too personal. They also serve as sounding boards, helping you evaluate opportunities and risks from an external viewpoint, which can reduce feelings of being solely responsible for the business' success or failure.

Non-Executive Director Benefits for SME Owners

One of the greatest advantages of Non-Executive Directors is their ability to bring fresh perspectives. Because they are not part of the day-to-day operations, they offer impartial advice and strategic oversight, unclouded by the company's internal politics or pressures. But the benefits extend much further:

1. Objective Decision Making When you're running a business, it's easy to become emotionally attached to certain projects or strategies. A NED provides objective, independent advice. They help you step back from the situation and consider decisions from a more balanced, strategic viewpoint. This clarity is particularly helpful when managing issues that might cause stress or emotional reactions.
2. Shared Responsibility One of the most powerful ways to combat loneliness as a managing director is by sharing the weight of responsibility. Non-Executive Directors are not there to take over, but they can provide invaluable advice, and when appropriate, share the responsibility for strategic decisions. Having someone to bounce ideas off or to provide a second opinion can reduce the feeling of being a "lonely boss."
3. Expanding Your Network NEDs often bring with them extensive networks of contacts that can be useful for your business. Whether it’s through facilitating introductions, offering new business opportunities, or gaining access to potential partners, the presence of a NED can significantly expand your business’s reach.
4. Mentorship and Guidance Many MDs of SMEs don’t have anyone to mentor or guide them. Non-Executive Directors often serve in this capacity. Their mentorship is invaluable when it comes to making challenging decisions or dealing with complex problems, providing not only practical advice but also moral support during tough times.
5.  Long-term Strategy Focus While you're busy managing daily operations, it's easy to lose sight of the bigger picture. A NED helps ensure that long-term strategies remain a priority. They focus on the overarching business goals and ensure that management decisions align with these objectives. This shift in perspective is crucial in maintaining balance between short-term issues and long-term vision. An NED will also help you to find ways to extricate yourself from day-to-day operations so you can spend more of your time on strategic matters like developing & sharing vision, and looking beyond your business to identify and respond to opportunities and threats in the wider market.

For further insight why not read our article "How a Non-Executive Director can elevate your business".

Non-Exec Director Responsibilities

So, what does a Non-Exec Director do in practical terms? Typically, the responsibilities of a NED include:

• Providing Independent Oversight: NEDs offer unbiased and balanced perspectives on the company’s performance, ensuring that management doesn’t get complacent or too critical of performance.
• Challenging and Supporting the MD: They are there to question decisions when needed, but also to offer support and insight, making sure you don’t feel isolated.
• Evaluating Risks and Opportunities: NEDs play a crucial role in risk management, providing impartial input that can help identify potential threats or opportunities.
• Mentoring and Leadership Support: An experienced NED can help develop the leadership team, including operational managers or other high-potential employees, creating a more robust leadership pipeline.

Advantages of Non-Executive Directors in Combating Isolation

Having an independent Non-Executive Director on your board doesn’t just benefit the business—it also directly helps you as the MD. The sense of isolation many owners feel stems from carrying the weight of the company alone. A Non-Exec can help lighten that load by:

• Being a Sounding Board: Sometimes, all you need is someone to talk things through with. Having a Non-Exec Director allows you to work through ideas or concerns without fear of judgment.
• Offering Emotional Support: It’s easy to overlook the importance of having someone who understands the pressures of running a business. A NED has extensive experience in leadership and can offer emotional support when times are tough.
• Reducing Stress Through Expertise: Because NEDs bring a wealth of expertise, you can feel more confident in your decisions, knowing that they’ve been vetted by someone with a deep understanding of business management. This is very reassuring and reduces your sleepless nights.

How to Appoint the Right NED for Your Business

Selecting the right Non-Exec Director is crucial for your business’s success and your well-being as an MD. Personal chemistry is essential as you’re going to be working very closely with this individual. There needs to be mutual respect and a strong interpersonal connection; they need to be someone you can get on with. Look for an individual who aligns with your company’s values and has strong commercial experience. They don’t necessarily need experience in your particular industry since you and your team already have this between you, so a fresh perspective can be exactly what is needed to bring new ideas from elsewhere. Consider their network, skills, and ability to mentor not just you but your wider leadership team.

When choosing a NED, it’s also important to define their role and expectations clearly. Set out the non-exec director responsibilities from the start to ensure there’s no confusion about what they will and won’t be doing.