Does your boardroom need subject matter experts?
Debbie Morrison • February 9, 2023

The business world is becoming increasingly complex, organisations must navigate ever-changing social attitudes, demographic shifts, and technological disruptions. In doing so, its imperative organisations not only understand these trends but respond to them by harnessing them to their advantage.


The phrase 'diversity' has become a bit of a catch-all term in the boardroom. While there has been much discourse on diversity, particularly around improving gender, age and cultural diversity, another critical aspect of boardroom diversity is the depth and breadth of subject matter expertise.



Does your boardroom have a balance of skills and diversity for oversight, governance and decision-making?

Ultimately tasked with providing good governance of an organisation, board members are also tasked with making decisions that affect the future of the company. While the board should be able to ask the right questions, they must also fully understand the business itself, its market, its competition, its customers and the products/services being offered by your organisation. In this capacity Subject matter experts can be invaluable resources when it comes time to make decisions.


‘Effective decisions result from a systematic process, with clearly defined elements, that is handled in a distinct sequence of steps’ [Drucker, 1967].


Whilst Drucker's statement still rings true, in today's data-driven world, decisions are increasingly only as good as the quality of information or expert opinion decision-makers have access to.


As a result, it is critical for companies to have access to the best possible data. This means boards must have a diversity of stakeholders who are considered subject matter experts to participate in the strategic decision-making process otherwise organisations run the risk of making decisions that could result in them getting left behind.


Subject matter experts not only add a balance of skills and diversity for oversight, governance and decision-making but having a mix of directors with different backgrounds and expertise bring different perspectives to the decision-making process. This enables boards to better align their decisions with stakeholder interests – a critical competency in securing a competitive advantage.


Know when to add external talent to your board.

In today's business environment, it's increasingly common for organisations to bring in outside expertise to help them navigate important decisions. For example, if your company is considering a merger or acquisition, you'll likely want to bring in a financial expert to evaluate the potential costs and benefits. Or if you're working on a new product launch, you might want to bring in an industry expert to give feedback on its viability.


Recognising when the appointment of a subject matter expert is the right step for establishing a strong board is an important consideration. If your organisation is experiencing any of the following, you may want to consider adding an additional member to your board:

  • When you're expanding into new areas of business or new markets. This can be a good time to bring in a strategic partner or advisor who knows the industry and can guide you through the nuances of the business area or market.
  • When you need to expand your knowledge base beyond what's available internally. For example, if a critical project involves developing a new product or service, it might make sense to bring on someone with expertise in that area rather than relying on the insights of existing employees.
  • When there are major strategic changes coming down the pipeline (e.g., going from the startup phase into growth).



Fresh perspectives in the boardroom

The boardroom is not just a place for executives to discuss company strategy or make decisions. It's also a place for subject matter experts to share their knowledge, which can help drive profitable growth and innovation.


In fact, according to a study by McKinsey & Company, "Subject Matter Experts are the most important external source of information for boards." 


This makes sense: The average CEO has access to a network of only about 150 people on average, who have relevant expertise in their industry. Yet many boards include members from outside the organisation who may have experience with similar companies or industries—and this unique perspective can be invaluable.

Here are five considerations for having a diverse board, and how to recruit and retain the right subject matter experts:

  • Having a diverse board is an important part of any company’s strategy for profitable growth. In the current economic climate where the pace of innovation is accelerating, diversity in thought leadership can help drive your business forward.
  • A well-rounded board brings together people with experience across many industries and functions who can bring new ideas into your decision-making process—and that will help you outperform your competitors over time.


Prioritising Your Needs

Specialist expertise can often be a very narrow field, so as a first step it is important to decide exactly what you want to get out of appointing a Subject Matter Expert. Their knowledge and insight can result in changes to many areas of the business from; manufacturing, product development, human resources, to sales and customer support, and even your marketing team could benefit from an SME serving in their specific areas. 


Keeping an open mind is essential to this process. Industry experts also tend to be well-networked and can often recommend other individuals who can add value or insight to unique or industry-specific challenges. Taking a holistic view of the knowledge gaps within the board and providing transparency to Subject Matter Experts during the process can help in identifying hidden gaps you may not have considered. Giving thought to adjacent industries that serve the same vendors or customers or have business challenges that are compatible with your own can be useful. Often, your best opportunities to identify the right people reside in these adjacent industries.

 

So the first step is deciding on the top functions or capabilities you need an SME to deliver, which will provide clarity to your search.


Craft a Clear Job Description

Once you decide what your SME needs to accomplish, it is vital that you outline what role they will play in advising the board and supporting the decision-making process. Clarity on the capacity in which they will work with the organisation is key. 


Will they function as part of a committee? Who will they be accountable to, and in what capacity?


If they’re not advising as board members, but via a committee, as subject matter specialists counselling executive management, how will the decision to support or implement their recommendations be taken and by whom – as with any other management proposal – and in turn, who will take responsibility for the success or failure of its implementation? 


Crafting a clear job description that outlines their obligations, what is expected of them and how their advice and expertise will be leveraged can help ensure the necessary structures are in place to get the best from them.


Look in the Right Places

Unsurprisingly, these individuals are in high demand and rarely looking for new opportunities, rather they are usually employed and not actively checking job boards or platforms such as LinkedIn.


When seeking very specific candidates, ensure you’re looking in the right places. Boards should start by leaning on their immediate network and working with the executive management team to identify industry experts that might already reside within the group's collective talent pool.


Networking and industry events are obvious but useful avenues to explore when identifying and engaging with subject matter experts. Of course, this should be an ongoing focus of the boards and executive management team since this approach does little to assist time-sensitive or immediate boardroom needs.


Develop Your Own

Another viable long-term strategy is to proactively develop your own Subject Matter Experts. You may already have highly experienced, motivated leaders already in your organisation who have acquired a high degree of expertise and could become subject matter experts over time given the right focus and support. 


This strategy will require some investment (in learning, credentials, time away from projects, etc.), but it’s worth considering. Providing growth and development opportunities like this for existing leaders is a great way to boost morale and foster a positive work culture that values team members. However, this approach does have its limitations, especially in instances where the expertise you seek is in areas outside of your domain.


Work With A Specialist Executive Search Firm

Finding Subject Matter Experts in very specific disciplines is just not that easy, but partnering with a specialist executive search firm with expertise in the FMCG or Food & Beverage industry can not only provide valuable insights into the talent pools, industry networks and individuals that can solve your problems and bring much-needed expertise into the boardroom across a range of functional disciplines. ELR Executive has been a leader in the Executive Search specifically for the FMCG industry for over 20 years.


In Summary, the answer is yes to this question. In fact, subject matter experts are becoming increasingly necessary in a boardroom environment. As companies grow and become more complex, their boards need to be able to provide strategic advice on topics that aren't directly related but still affect company performance. The best way for boards to do this is by bringing in experts across various functional disciplines who can help provide insight throughout the decision-making process, ensuring that boards are advising and supporting executives in achieving the strategic objectives of the business.


By John Elliott June 26, 2025
You don’t hear about it on the nightly news. There’s no breaking story. No panic. No protests. Just rows of vegetables being pulled out of the ground with no plan to replant. Just farmers who no longer believe there’s a future for them here. Just quiet decisions — to sell, to walk away, to stop. And if you ask around the industry, they’ll tell you the same thing: It’s not just one bad season. It’s a slow death by a thousand margins. 1 in 3 growers are preparing to leaveIn September 2024, AUSVEG released a national sentiment report with a statistic that should have set off alarms in every capital city: 34% of Australian vegetable growers were considering exiting the industry in the next 12 months. Another one-third said they’d leave if offered a fair price for their farm. Source: AUSVEG Industry Sentiment Report 2024 (PDF) These aren’t abstract hypotheticals. These are real decisions, already in motion. For many, it’s not about profitability anymore, it’s about survival. This isn’t burnout. It’s entrapment. Behind the numbers are people whose entire identity is tied to a profession that no longer feeds them. Many are asset-rich but cash-poor. They own the land. But the land owns them back. Selling means walking away from decades of history. Staying means bleeding capital, month by month, in a system where working harder delivers less. Every year, input costs rise, fuel, fertiliser, compliance. But the farmgate price doesn’t move. Or worse, it drops. Retail World Magazine reports that even though national vegetable production increased 3% in 2023–24, the total farmgate value fell by $140 million. Growers produced more and earned less. That’s not a market. That’s a trap. What no one wants to say aloud The truth is this: many growers are only staying because they can’t leave. If you’re deep in debt, if your farm is tied to multi-generational ownership, if you’ve invested everything in equipment, infrastructure, or land access, walking away isn’t easy. It’s a last resort. So instead, you stay. You cut your hours. Delay maintenance. Avoid upgrades. Cancel the next round of planting. You wait for something to shift, interest rates, weather, prices and you pretend that waiting is strategy. According to the latest fruitnet.com survey, over 50% of vegetable growers say they’re financially worse off than a year ago. And nearly 40% expect conditions to deteriorate further. This isn’t about optimism or resilience. It’s about dignity and the quiet erosion of it. Supermarkets won’t save them, and they never planned to In the current model, supermarket pricing doesn’t reflect real-world farm economics. Retailers demand year-round consistency, aesthetic perfection, and lower prices. They don’t absorb rising input costs, they externalise them. They offer promotions funded not by their marketing budgets, but by the growers’ margins. Farmers take the risk. Retailers take the profit. And because the power imbalance is so deeply entrenched, there’s no real negotiation, just quiet coercion dressed up as "category planning." Let’s talk about what’s actually broken This isn’t just a market failure. It’s a policy failure. Australia’s horticulture system has been built on: Decades of deregulated wholesale markets Lack of collective bargaining power for growers Retailer consolidation that has created a virtual duopoly Export-focused incentives that bypass smaller domestic producers There’s no meaningful floor price for key produce lines. No national enforcement of fair dealing. No public database that links supermarket shelf price to farmgate return. Which means growers, like James, can be driven into loss-making supply contracts without ever seeing the true economics of their product downstream. But the real silence? It’s from consumers. Here’s what no one wants to admit: We say we care about “buying local.” We say we value the farmer’s role. We share those viral posts about strawberries going unsold or milk prices being unfair. And then we complain about a $4 lettuce. We opt for the cheapest bag of carrots. We walk past the "imperfect" produce bin. We frown at the cost of organic and click “Add to Cart” on whatever’s half price. We’re not just bystanders. We’re part of the equation. What happens when the growers go? At first, very little. Supermarkets will find substitutes. Importers will fill gaps. Large agribusinesses will expand into spaces vacated by smaller players. Prices will stay low, until they don’t. But over time, we’ll notice: Produce that travels further and lasts less. Fewer independent growers at farmer’s markets. Entire regions losing their growing identity. National food security becoming a campaign promise instead of a reality. And when the climate throws something serious at us, drought, flood, global supply shock, we’ll realise how little resilience we’ve preserved. So what do we do? We start by telling the truth. Australia is not food secure. Not if 1 in 3 growers are planning to exit. The market isn’t working. Not when prices rise at the shelf and fall at the farmgate. The solution isn’t scale. It’s fairness, visibility, and rebalancing power. That means: Mandating cost-reflective contracts between retailers and suppliers Enabling collective bargaining rights for growers Building transparent data systems linking production costs to consumer prices Introducing transition finance for smaller producers navigating reform and climate pressure And holding supermarkets publicly accountable for margin extraction But more than anything, it means recognising what we’re losing, before it's gone. Final word If you ate a vegetable today, it likely came from someone who’s considered giving up in the past year. Not because they don’t care. But because caring doesn’t pay. This isn’t about nostalgia. It’s about sovereignty, over what we eat, how we grow it, and who gets to stay in the system.  Because the next time you see rows of green stretching to the horizon, you might want to ask: How many of these fields are already planning their last harvest?
By John Elliott June 20, 2025
If you're leading an FMCG or food manufacturing business right now, you're probably still talking about growth. Your board might be chasing headcount approvals. Your marketing team’s pitching a new brand campaign. Your category team’s assuming spend will bounce. But your customer? They’ve already moved on. Quietly. Like they always do. The illusion of resilience FMCG has always felt protected, “essential” by nature. People still eat, wash, shop. It’s easy to assume downturns pass around us, not through us. But this isn’t 2020. Recessions in 2025 won’t look like lockdowns. They’ll look like volume drops that no promo can fix. Shrinking margins on products that no longer carry their premium. Quiet shelf deletions you weren’t warned about. The data’s already there. According to the Australian Bureau of Statistics, consumer spending is slowing in real terms , even as inflation eases. The Reserve Bank confirmed in May: household consumption remains subdued amid weak real income growth . And over 80% of Australians have cut back on discretionary food spending , according to Finder. They’re still shopping, just not like they used to. A managing director at a national food manufacturer told me recently: “We won a new product listing in April. By July, it was marked for deletion. The velocity wasn’t there, but neither was the shopper. We’d forecasted like 2022 never ended. Rookie mistake.” That one stuck with me. Because I’ve heard it before, just in different words.