Over 90% of the people I work with or talk to are executives looking to complement their executive careers with a non-executive director role. Others are CEOs, CFOs, COOs, and other Senior Executives looking to transition to a portfolio career.
The conversations I have with each candidate, of course, are quite different, but inevitably, for most, the reality is that the transition from an executive to a non-executive director role is highly competitive and, for those seeking their first NED role, quite daunting and challenging. However, I firmly believe there is a board role out there for everyone, and the personal and professional benefits of serving as a NED by far outweigh the challenges of getting there.
Consider the rewards
When faced with the challenge of transitioning from an executive to a NED role, I recommend considering the potential rewards if successful. The rewards of holding a non-executive directorship include:
- Career progression—NED roles offer unique opportunities to learn and grow in a leadership role outside of your executive role. These new skills and esteemed recognition often assist one’s career progression within their current organisation or in gaining new executive roles.
- Strategic management skills development—Many aspiring NEDs hold senior executive positions, however these roles tend to be at an operational level only. NED roles offer the opportunity to manage an organisation at the highest level, focusing on the long-term goals and providing the direction to achieve those goals.
- Group decision-making skills development—Boards operate collectively to make decisions and take responsibility for those decisions. As a group, they analyse issues, suggest options, and decide on the best course of action. This style of decision-making and the management, political, and communications skills required may be entirely foreign to those in executive management positions.
- Networking skills and opportunities—Sitting on any board or committee provides a unique space to build and nurture personal and professional relationships with people you may not otherwise associate with.
- Remuneration—For many, the underlying reward for transitioning to an NED role is earning additional income.
- Self-purpose opportunities—While it sounds cliche, the opportunity to give back to the community, a cause or an industry, is a major inspiration for many to serve in paid and voluntary NED roles. The personal benefits of contributing to one’s sense of purpose cannot be overstated.
The 5 things you can do NOW to ease the NED transition
#1 Start Now
Yes, gaining a NED appointment does not, happen overnight, but there several misconceptions that delay aspiring NEDs from acquiring their first appointment. The first is the belief that once you have earned your stripes in the business world, someone will tap you on the shoulder and offer you a place on their board. Another misconception is that you must tick off specific achievements, such as a C-suite role or a Governance qualification, to be considered for a board role. Finally, many believe that it is not possible to hold a NED role at the same time as an executive role.
Successful Non-Executive Directors start their board appointment careers early. They understand that balancing an NED position alongside an executive career is not only feasible but also invaluable for overall career growth.
So, accept that it takes time to build the experience and networks required to gain significant board roles. Plan ones that you can start now to work towards future roles. Consider smaller not-for-profit roles, committees or trusts within your local community. Explore possibilities to participate in committees or advisory committees within your current organisation or industry. Selecting appropriate roles can significantly impact the future when leveraged efficiently.
#2 Allocate Time
Most of us have busy executive and personal lives. Where I see many prospective NEDs fail is not having the right skills or experience but failing to allocate time effectively. Essentially, life gets in the way.
Firstly, they underestimate the time it takes to gain a NED role. Realistically, you should commit at least 12 months to the process. Many achieve results much quicker with patience, consistency, and the right motivation. Schedule regular time in your diary for the tasks you need to complete. If you do this weekly, you will avoid getting overwhelmed and find yourself off track.
Secondly, once you are appointed, don’t underestimate the time commitment required of a board director. Generally, I advise that a typical NED spends at least two days a month on non-executive duties. Formally, there will be board meeting preparation, external or committee meetings, travel, governance skills commitments, and the board meetings themselves. Informally, you may be asked to participate in ad-hoc discussions and provide advice, coffee catch-ups, industry events, and promotional events.
#3 Know your skillset
Identify and articulate the unique skills and experiences you can bring to a board role. Many skills transition well from executive to non-executive roles, so identify your transitional skills and consider what boards will value them.
Researching boards, skills matrices and board vacancy ads may help you identify which transitional skills boards consider valuable. Once you are clear about what you have to offer, you need to be able to complete this statement: “At board level, what I do is…” Note, I say – At board level – because if you have not held a board appointment before, you must emphasise your board-level experience and value. Be specific and provide details or quantifiable results where possible.
#4 Write your board CV
I can not stress enough how important it is to have a Board CV, which is very different from your Executive CV. So, if you don’t have one, you must start drafting your board CV as soon as possible. It doesn’t have to be perfect, and it will evolve as you grow with the process. However, submitting an executive or poorly written board CV will give any gatekeeper an easy reason to add your application to the NO pile.
Every formal board application you submit should be supported by a Board Cover Letter, regardless of whether it was requested. If you can only submit one document, add the cover letter to the first page of your board CV. Be prepared with a draft board cover letter document that you can tailor to address the selection criteria and demonstrate your suitability for the role.
#5 Tell People
One of the simplest ways to assist the transition from an executive to a non-executive director role is to tell people. People can not help if they are not aware of your aspirations, and you never know what doors you may open. But when you do start these conversations, be prepared to address “why you want to be a NED” and “what sort of board role are you looking for?”
To conclude
Transitioning from an executive role to your first non-executive role is not as difficult as many perceive. Keep in mind that everyone has to start somewhere. By starting early, you can get ahead of the competition and benefit from the professional and personal rewards gained along the way. As is often the case, success is linked to your effort, but staying focused and persevering is also required. Life will get in the way, be prepared and accept the challenge.
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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.