Regardless of the industry or sector, there are many personal attributes that go a long way to making a successful Non-Executive Director (NED). Two elements benchmark successful non-executive directors. The first is their performance, skills and experience they bring whilst serving in a board role. Non-executive directors scrutinise the organisation’s performance, risks and offer strategic guidance, thereby safeguarding and improving the organisation’s governance to protect all stakeholders. They also support/guide/hold the executive team to deliver on strategic imperatives. The second is considering how they achieve all the efforts above. The way they work with other NEDs, the way they interact with the Chair, their tone, the work and interactions they do/have outside of formal board meetings, the connections they leverage, and the general enthusiasm they bring to their role.
It is this second element I want to focus on in this article because many overlook the value of these ‘softer skills’ in both delivering as a NED and being appointed to a board.
What personal qualities and skills make a successful NED?
Most assume hard-nosed, highly qualified individuals make for successful NEDs. While many might fit this bill, it does not guarantee their success. Many of these required skills and experiences you will find listed in the selection criteria section of a role’s formal job description or vacancy advertisement.
Success instead usually hinges on a range of softer skills and qualities that cultivate a style and approach that enhances effectiveness in their board roles.
Personal attributes, however, are more challenging to document and often feel generic to many. You may be well aware of some of them because they are often listed within the ‘desirable’ criteria for a NED role, but there may be others you have considered. It’s important that you are aware of all of them because chairs value them highly when deciding who to appoint to their boards. Indeed, I find that these qualities are explored by the selection panel during a board interview and make a significant impact on your appointability.
For these reasons, it’s worth knowing what they are.
Some personal attributes that make for a successful NED include…
- Self-Motivation: While the board chair is responsible for the board and its members, non-executive directors are not micromanaged. This is even more relevant for NEDs who are not employees of the organisation. The time commitment to perform as a successful NED is usually more than anticipated. A self-motivated NED will be reliable, always well prepared for board meetings and willing to step up when needed. Self-motivated board directors also develop resilience and optimism, which allows them to remain positive during uncertainty and setbacks and encourages others to do the same.
- Self-Regulation: As leaders, board members must remain calm even when stressed and not show visible emotion. They must think clearly under pressure, enabling them to make rational decisions. Successful non-executive directors can recognise personal feelings and opinions and separate them from critical decision-making. They are also unlikely to say or do anything that will bring the board or the organisation into disrepute.
- Communication: Communication at the board level is challenging, to say the least. The board’s effectiveness and, ultimately, the organisation’s success rely on good communication. NEDs must be able to contribute during meetings, articulate complex ideas and position clearly, be a strong communicator when detailing with internal and external stakeholders, read between the lines and respond appropriately to the politics associated with many aspects of group decision-making.
- Cognitive Empathy: Cognitive empathy is the practice of seeking and understanding another person’s perspective. It is often referred to as perspective-taking or putting yourself in someone else’s shoes. Cognitive empathy at the board level is essential for improving communication, strengthening key relationships and making better decisions for all stakeholders. It also leads to positive outcomes when stakeholders perceive that their perspectives and interests are acknowledged at the organisation’s highest levels. Finally, practising empathy builds greater collaboration and improves productivity within the board team.
- Adaptability: Adaptability as a personal skill sounds insignificant, but it is essential for all successful non-executive directors, particularly in this post-COVID era. Everything has changed and continues to do so, including technology, how we work, the ways to do business, the products and the services an organisation can offer and consume, and the pace and magnitude at which new risks materialise. NEDs must be adaptable and not set in their ways. They must manage their adaptability and support change and change management within their organisations.
- Passion: Passion plays a vital role in shaping successful non-executive directors. They must be passionate about the integrity of governance, the significance of their role, what the board aims to achieve, and the organisation they serve. This genuine enthusiasm fuels their desire to contribute meaningfully and helps drive the organisation toward growth and improved outcomes for all stakeholders. Moreover, passion inspires the level of dedication and motivation essential for a NED to go above and beyond in their responsibilities.
- Relationship Building: Successful NEDs recognise the importance of establishing and maintaining strong relationships and valuable connections. Every NED must ensure they have solid relationships with their fellow board members, executive teams, advisory committees, and external advisors to the board. External relationships hold significant importance as well. Effective NEDs are not only well-connected but also skilled at engaging valuable contacts for the benefit of the board. These relationships can unlock opportunities and enhance the credibility of the organisation they represent.
What does this all mean for those seeking NED roles?
Gaining a board appointment is often more about fit and passion than the formal skills and experience you offer. The latter will only ever get you past the first cut in a formal appointment exercise (of which, at most, only 15% of appointments are made this way). Then, once you get to interview, it is vastly the personal qualities that are tested. Conversely, when considering the 85% of appointments made informally, it will be your softer skills, knowledge and approach that you will be judged on first. If you don’t have these, your hard skills and experience don’t matter… at all.
Understanding the softer skills that make NEDs successful, will help you determine your value to a board. Then, you need to articulate your value to separate yourself from the competition. Acknowledging where and what hurdles are preventing you from obtaining the board role you want, combined with a simple and easy-to-implement process, will help you establish your board 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.