Non-Executive Director (NED) appointment success comes with having clearly defined and realistic board targets organisations. If your board aspirations are out of alignment with what you have to offer these boards, you are likely to experience rejection and frustration. Without clearly defined target organisations, your strategy for securing a NED appointment will likely be inconsistent and reactionary, leading to a counterproductive use of time in reaching your board career goals.
People always ask me how long it will take to get an NED appointment. Although there is no straightforward answer to this question, establishing well-defined and achievable NED target organisations is the foundation for facilitating a faster outcome.
What do I mean by NED target organisations?
Most aspiring NEDs know vaguely what sorts of organisations they would like to be appointed to the board of. However, few can name particular organisations that they would BOTH like to be appointed to and who are likely to appoint them. I can’t stress this enough… defining a list of target NED organisations – by name – is critical. If you consider a pyramid structure, then this list is the pyramid’s base that supports everything you do.
This article will take you some way to compile a list of target organisations by considering your answers to 8 questions that will direct your thinking around what is and is not possible.
Ask yourself these 8 simple questions
1. How much do I need to get paid?
There is nothing wrong with wanting to be compensated for your contribution to the leadership of an organisation, plus the responsibilities and risks associated with the role. However, when considering this question, bear in mind that there are plenty of benefits associated with unpaid NED, committee or Trustee roles. Not to mention that unpaid roles are more abundant, with less competition for each role.
Remuneration rates vary for UK non-executive directors if you need to be paid. For many, the remuneration for a part-time board role can be valuable. However, if you need to replace or supplement substantial income, consider developing a portfolio of roles. Suitable paid NED opportunities within your desired sector and industry may be limited and highly competitive – making your board appointment process challenging. Therefore, I recommend that those who are adamant they need paid board appointments only do not get distracted by unpaid board roles and don’t add those organisations to your NED target list.
2. Who is going to value your skills?
No two organisations are the same. So, you can assume that at the board level, every organisation will see value in every skill set, including yours. To determine which board are likely to value your skills, you must first know exactly what that skillset is and why it is valuable at the board level.
You have to look at this from the board’s point of view. Would the board of a small company with few employees benefit from a new board member with top-level HR expertise? Unless the organisation were about to embark on a period of substantial growth, they would unlikely consider HR expertise a valuable skill set. Nor would a board candidate with broad CIO/IT experience be valuable on the board of a high-tech organisation. They would have those skills readily available within their executive team.
So, think about what boards and organisations will value your specialist knowledge, experience and strategic skills. How and where can you make a substantial impact to achieve their strategic goals? Some organisations will have conducted a Board Skill Matrix and be aware of what skill sets they need to acquire, whilst others may need you to show where they are lacking and how you can help. Essentially, it becomes a skills match exercise, which boards will benefit from what you have to offer. Then, consider those organisations for your target list.
3. How competitive are you?
Gaining a NED appointment is competitive, whether it is your first or subsequent appointment. As your board aspirations grow, you will see the competition for many of those NED roles. For example, I have a client recently appointed to a significant Australian retail board. She had 14 separate interviews before her appointment!
Considerable NED roles will attract highly experienced and competitive candidates. So, when compiling your NED target list, consider how prepared you are for an intense, competitive appointment process. Also, consider the extra time you may need to commit to the process. If you or your NED application documents (NED CV, NED profile, NED cover letter and LinkedIn profile) are not ready for this challenge, don’t add NED roles that you know will be highly sought after to your current NED target organisation list.
4. Where do you live?
Even with the ratification of remote board meetings, location still counts. Boards, or more specifically, board chairs, still take comfort in appointing individuals who are close to them geographically. They seek individuals they can depend on to turn up for urgent matters or to meet up for a coffee chat. Of course, there will always be exceptions depending on the organisation, the markets they operate, and the skill set they seek.
That may mean initially restricting your target to organisations within or close to the region where you live. If you are considering a NED target organisation outside of your general location, you need to consider what you offer above and beyond that of a local candidate. Then, you need to be prepared to articulate them compellingly. Equally, you must also convince them that distance will not affect your functioning as a board member.
5. Who will value your connections?
This question is not one that many consider but is particularly important. When considering the value of your connections, think of the individuals, companies, industries and sectors that are valuable to the boards of your NED target organisations.
Compile a list of the industries you have worked in or with, the organisations you have worked for, and the sectors you have worked in. Then, consider their competitors, clients, and stakeholders. These lists will help you identify your valuable connections.
Then, reverse engineer it by asking what boards or organisations will gain value by accessing your connections. These organisations should then be considered as NED target organisations.
6. What are your timings?
Consider how quickly you intend to get your NED appointment. If you want to start your board career as soon as possible, a Not-for-profit appointment is likely to achieve the fastest result. However, if your aspirations are for something more commercial, you may have to wait a little longer to achieve your goals. Ideally, your NED target list should include some short-term and long-term goals.
7. What are your passions for being on a board?
Chairs and NEDs are passionate about one of 3 things:
1. What their organisation does
2. The organisation itself
3. Their contribution to the organisation.
You must share this passion, too. Otherwise, you will likely be viewed as a risk, unable or unwilling to contribute as much as passion others will. This results in an unsustainable appointment and risks the company’s or Chair’s reputation.
Consider what organisations you can demonstrate your passion for. Wanting to serve as a board member is not enough. What are you passionate about? Personally, professionally and extra-professionally. This counts more than most realise. Now, put the names of organisations against these passions and add suitable ones to your target list.
8. How much preparation and perseverance are you willing to commit to the process?
Many believe that the harder you work, the luckier you get. When it comes to a NED appointment, this is partly true. But hard work alone is not enough. You need to be well-prepared and willing to persevere and learn when faced with rejection. That means getting your NED documents in order, being clear on your board pitch and managing your aspirations. Solid preparation is key – if you prepare and work smart, you will get lucky – over and over again.
Defining a list of NED target organisations is challenging but just so valuable.
If you are struggling to refine your NED aspirations by compiling a list of target organisations, you are in good company. However, I can not stress enough how valuable the process is for successfully being appointed to a NED role. One that is right for you. Prospective NEDs who do not have a well-prepared list of target boards lack direction and clarity. They come across as underprepared and as lacking passion. Their process is reactive, resulting in frustration and seeing little rewards for their efforts. Eventually, this leaves those with plenty to offer a board to give up on the process.
My advice to you is just to start your NED target list. Don’t overthink it, your list will and should evolve with more time and experience. Having a couple of targets in mind means you can answer the question, ‘What sort of board are you looking for?’. It will provide a solid basis for developing the strategies and tactics required to gain that appointment.
If you need a hand, reach out to start a conversation.
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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.