The truth is that a Governance Qualification is rarely a must-have requirement for potential board candidates. However, when the competition is tight for a single non-executive director (NED) role, it may be the only thing that separates you from the other candidates. For this and five other reasons, you should consider gaining a governance qualification if you are serious about establishing a NED career.
Is a governance qualification essential?
Having taken briefs from hundreds of Chairs looking to appoint new non-executive board directors, I know they primarily look for 5 core selection criteria in board candidates. Whilst many chairs seek candidates with some governance experience, rarely will they state that the successful NED candidate must have a governance qualification. In fact, of the thousands of board vacancies we have listed, only ~15% publicly reference the need for candidates to have some governance training as a prerequisite for selection.
Officially, in the UK, few restrictions exist on who can act as a director. A person must be at least 16 years old, and there are certain circumstances in which a person can be disqualified from acting as a director, either by law or under a company’s constitution. There are no laws regulating who can serve as a NED, which is an independent director role. However, the UK’s Corporate Governance Code (CGC) does stipulate criteria for a director to be considered independent. There is nothing in the CGC that states that a NED is required to have a governance qualification or experience.
Should you invest your time and money in gaining a Governance Qualification?
Consider a governance qualification as being of similar benefit to your non-executive career as an MBA to an executive career. It is valuable for expanding your knowledge, making a statement, and making you more effective in your role. An added benefit is that the cohort you study with will likely be of value from a networking perspective.
But that qualification alone will unlikely get you appointed to a board. But, it will make you a better Non-Executive Director (NED) and a more attractive candidate.
I speak with hundreds of aspiring and existing NEDs each year, and the majority of them do have a governance qualification – perhaps as high as 75%. It seems more and more that people who want a board career are gaining some sort of governance qualification. They believed that (like for many jobs) you need to get the qualification before you can get the role.
When speaking to those who have gained a NED role, they rarely tell me that they believe their governance qualification alone was why they were appointed.
Six Reasons to Get a Governance Qualification
If you are serious about a NED career, there are six reasons why you should consider completing some form of governance training:
- Adding governance training credentials to your NED CV and LinkedIn profile will demonstrate your commitment to serving on boards and developing a board career. It will form part of your board pitch.
- Even if you have governance experience, formal governance training will likely teach you things you don’t already know.
- Governance training can confirm, formalise or update the things you already know.
- Many of the students you complete the course with will become connections where you share common interests. Maintaining and nurturing these connections can provide invaluable professional and board introductions and opportunities.
- Governance training will show that you are serious about serving on a board and contributing effectively to an organisation’s governance.
- Finally, it might be the difference between making the shortlist or being appointed. When the selection panel has several equally impressive candidates, they often see less risk in appointing a professionally qualified candidate than someone who is not.
What is Governance Training?
Governance training should deliver the knowledge and clarity to effectively discharge your director’s duties. Courses focus on good governance practice, covering the role of the board, directors, and management to ensure organisations are well governed and financially managed. The extent and scope of the content will vary with the grade of the qualification (e.g., Certificate vs. Master’s Degree) and the institution conducting it.
There are plenty of organisations that offer governance training for UK residents, including:
This is not a comprehensive list, and there will be others. Rather, it is a starting point, with many of these organisations and qualifications being internationally approved and accepted. The courses will vary in price, timing, qualification awarded, location and delivery methods. You will need to consider which is most suitable for your current situation.
In Summary
If you are serious about a board career, you should consider obtaining a governance qualification. However, do not commit assuming it is a “ticket to play”. Since most NED roles do not require the successful candidate to have a governance qualification, it is also not something you need to complete before seeking or gaining your first board role. But, for many good reasons, it is something that all aspiring NED should consider in the future to further their career.
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About the Author
David Schwarz is CEO & Founder of Board Appointments – The UK’s leading board advertising and non-executive career support firm. He has over a decade of experience of putting people on boards as an international headhunter and a non-executive recruiter and has interviewed over one thousand non-executives and placed hundreds into some of the most significant public, private and NFP roles in the world.