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 6, 2025
On paper, they were fully resourced. No complaints logged. No formal red flags. Delivery metrics holding steady. But behind closed doors, the signs were there. Delays. Fatigue. Silence in meetings where pushback used to live. And a growing sense that key people were leaning out, emotionally, if not yet physically. When the cracks finally showed, the conclusion was predictable: “We need more people.” But that wasn’t the real problem. The problem was trust. And most organisations never see it until it’s too late. The Hidden Cost of Disengagement In Gallup’s 2023 global workplace report , only 23% of employees worldwide reported being actively engaged at work. A staggering 59% identified as “quiet quitting”, psychologically detached, going through the motions, doing only what their job description demands. Source: Gallup Global Workplace Report 2023 Disengagement is expensive. But it’s also quiet. It doesn’t show up on a balance sheet. It doesn’t send a Slack message. Disengagement isn’t new, just silenced. And in executive teams, it looks different. It looks like polite agreement in strategy meetings. It looks like leaders shielding their teams from unrealistic demands, instead of confronting the system causing them. It looks like performance metrics still being met… while people emotionally check out. The issue isn’t always capability. It’s safety. Psychological, political, and professional. Many senior leaders don’t raise concerns, not because the problem isn’t real, but because they don’t believe they’ll be heard, supported, or protected if they do. And this is where the failure begins. The Leadership Lie No One Talks About We talk a lot about leadership capability. About experience, commercial acumen, execution strength. But we don’t talk enough about context. Every leadership hire walks into a culture they didn’t create. They inherit unwritten rules, quiet alliances, and legacy power structures. If those dynamics are broken, or if trust is fractured at the top, no amount of capability will compensate. According to a 2022 Deloitte mid-market survey, 64% of executives said culture was their top strategic priority. But only 27% said they actually measured it in a meaningful way. We say culture matters. But we rarely structure around it. And so new leaders walk in with pressure to perform, but little real insight into what the role will cost them emotionally, politically, or personally. We Don’t Hire for Trust. And It Shows. In executive search, the conversation is often dominated by pedigree and “fit.” But fit is often a euphemism for sameness. And sameness doesn't build trust, it maintains comfort. We rarely ask: Does this leader know how to build trust vertically and horizontally? Can they operate in a low-trust environment without becoming complicit? Will they challenge inherited silence, or unconsciously uphold it? Instead, we hire for confidence and clarity, traits that often mask what’s broken, rather than reveal it. And when those hires fail? We call it a mismatch. Or we cite the usual: “lack of alignment,” “wasn’t the right time,” “they didn’t land well with the team.” But the truth is often uglier: They were never set up to succeed. And no one told them until it was too late. The Cultural Infrastructure Is Missing One of the most damaging myths in leadership hiring is that great leaders will “make it work.” That if they’re tough enough, experienced enough, skilled enough, they’ll overcome any organisational dysfunction. But high-performance isn’t just personal. It’s systemic. It requires psychological safety. A clear mandate. The backing to make hard decisions. The freedom to speak the truth before it becomes a PR problem. When that infrastructure isn’t there, when the real power dynamics are unspoken, good leaders stop speaking too. And the silence spreads. What Trust Breakdown Really Looks Like Often, the signs of a trust breakdown don’t show up in dramatic ways. They surface subtly in patterns of underperformance that are easy to misread or excuse. You start to notice project delays, but no one flags the root cause. Teams keep things moving, quietly compensating for the bottlenecks rather than surfacing them. Not because they’re careless, but because they’ve learned that early honesty doesn’t always earn support. New leaders hesitate to make bold calls. Not because they lack conviction, but because the last time they did, they were left exposed. Board reports look flawless. Metrics track nicely. But spend five minutes on the floor, and the energy tells a different story. These are not resource issues. They’re relationship issues. And the data backs it. According to Gallup’s 2023 State of the Global Workplace report , just 23% of employees worldwide are actively engaged. Worse, around 60% are “quiet quitting.” That’s not just disengagement. It’s people doing only what’s safe, only what’s required, because trust has quietly eroded. Gallup also found that managers account for 70% of the variance in team engagement, a staggering figure that reinforces just how pivotal leadership trust is. When people don’t feel psychologically safe, they shut down. Not dramatically. Quietly. Invisibly. What’s breaking isn’t the org chart. It’s the ability to speak plainly and be heard. And by the time it’s visible? The damage is already done, and someone calls for a restructure. “Low engagement is estimated to cost the global economy $8.8 trillion, 9% of global GDP.” Gallup, State of the Global Workplace 2023 So What’s the Real Takeaway? If you’re seeing performance issues, before you jump to headcount, ask a different question: Do the leaders in this business feel safe enough to tell the truth? Because if they don’t, the data you’re reading isn’t real. And if they do, but you’re not acting on it, then they’ll stop telling you. Leadership doesn’t fail in obvious ways anymore. It fails in the gap between what people know and what they’re allowed to say. And the price of that silence? Missed opportunity. Reputational damage. Cultural decay. Sometimes, the problem isn’t who you hired. It’s what you’ve made it unsafe to say.
By John Elliott May 27, 2025
Why Culture Decay in FMCG Is a Silent Threat to Performance It doesn’t start with resignations. It starts with something much quieter. A head of operations stops raising small problems in weekly meetings. A sales lead no longer defends a risky new SKU. A team member who used to push ideas now just delivers what they’re asked. Nothing breaks. Nothing explodes. It just... slows. And from the outside, everything still looks fine. The illusion of stability In food and beverage manufacturing, where teams run lean and pressure is constant, performance often becomes the proxy for culture. If products are shipping, if margins are intact, if reviews are clean, the assumption is: we're good. But that assumption is dangerous. According to Gallup's 2023 global workplace report, only 23% of employees worldwide are actively engaged, while a staggering 59% are "quiet quitting ", doing just enough to get by, with no emotional investment. And in Australia? Engagement has declined three years in a row. In a mid-market FMCG business, those numbers rarely show up on dashboards. But they show up in other ways: New ideas stall at the concept phase Team members stop challenging assumptions Execution becomes rigid instead of agile Everyone is "aligned" but no one is energised And by the time the board sees a drop in revenue, the belief that once drove the business is already gone. The emotional cost of cultural silence One thing we don’t talk about enough is what this does to leadership. When energy drains, leaders often become isolated. Not because they want to be, but because the organisation has lost the instinct to challenge, question, or stretch. I’ve seen CEOs second-guessing themselves in rooms full of agreement. Seen GMs miss red flags because nobody wanted to be "the problem". Seen founders mistake quiet delivery for deep buy-in. The emotional toll of unspoken disengagement is real. You’re surrounded by people doing their jobs. But no one’s really in it with you. And eventually, leaders stop stretching too. We train people to disengage without realising it Here’s the contradiction that most organisations won’t admit: We say we want initiative, but we reward obedience. The safest people get promoted The optimists get extra work The truth-tellers get labelled difficult So people learn to conserve energy. They learn not to challenge ideas that won’t land. They learn not to flag risks that won’t be heard. And over time, they stop showing up with their full selves. This isn't resistance. It's protection. And it becomes the default when innovation is punished, risk isn't buffered, and "alignment" becomes code for silence. Boards rarely see it in time Boards don’t ask about belief. They ask about performance. But belief is what drives performance. When culture begins to fade, it doesn't look like chaos. It looks like calm. It looks like compliance. But underneath, the organisation is hollowing out. By the time a board notices the energy is gone, it’s often because the financials have turned, and by then, the people who could've helped reverse the trend have already left. In a 2022 Deloitte study on mid-market leadership, 64% of executives said culture was their top priority, yet only 27% said they measured it with any rigour . If you don’t track it, you won’t protect it. And if you don’t protect it, don’t be surprised when it disappears. The real risk: you might not get it back Here’s what no one likes to admit: Not all cultures recover. You can try rebrands. You can run engagement campaigns. You can roll out leadership frameworks and off-sites and feedback platforms. But if belief has been neglected for too long, the quiet ones you depended on, the culture carriers, the stretchers, the informal leaders, they’re already checked out. Some have left. Some are still there physically but not emotionally. And some have started coaching others to play it safe. Once that happens, you're not rebuilding. You're replacing. So what do you do? Don’t listen for noise. Listen for absence. Absence of challenge. Absence of stretch. Absence of belief. Ask yourself: When was the last time someone in the business pushed back? Not rudely, but bravely? When did someone offer an idea that made others uncomfortable? When did a leader admit they were unsure and ask for help? Those are your indicators. Because healthy culture isn’t silent. It’s alive. It vibrates with tension, disagreement, contribution and care. If everything looks fine, but no one’s really leaning in? That’s your problem. And by the time it shows up in the numbers,t might already be too late.