One of the questions I am commonly asked by people considering a Non-Executive Director (NED) career is “where to begin, with no prior board experience?”. My answer is that everyone has to start from somewhere; you just have to approach things differently.
Consider what individual boards are looking for
This process should be both macro and micro in scope. When considering the big picture, boards generally focus on five core elements when seeking a new non-executive director. They are:
- Prior board or governance experience
- An executive skill set
- Personal and professional connections
- Cultural fit with the board and organisation
- Passion
However, the reality is that it is not just those with existing board experience or CEO backgrounds who get appointed. The vast majority of people on boards had neither when they were first appointed. So, if you don’t have prior board experience, there are four other key attributes to focus on, ones that many boards and chairs consider more valuable.
Now, let’s look at it from a micro perspective. To do so, you need to identify some individual boards and organisations that you would like to work with. At this level, not every organisation will, nor should they, value every skill set. Whilst some organisations and industries will require more board, governance and risk mitigation experience than others. Certain boards may already have a wealth of specific skills, attributes, and expertise among their existing members.
The emphasis on passion will vary at the macro level, which is usually determined by the chair. Many chairs will not appoint a non-executive director (NED) to their board, regardless of their other outstanding attributes, unless they genuinely have a passion for the organisation and industry. This decision is driven by experience and fear!
They fear that, without passion, the new appointee will quickly realise that being a NED is not worth the effort required. Experience tells them that the new appointee will not give their full commitment, will be unwilling to attend extra-professional events, and possibly resign before completing their tenure. This adversely impacts the board’s and organisation’s ability to reach their goals, and, more importantly, the reputation of the Chair.
Leverage your executive skills and experience
To leverage your executive skills and experience, you first need to clearly define your primary skill sets. Also, consider your highly transferable skills. Then assess these skills to determine which are potentially valuable at board level.
If you struggle with this task, consider your strategic executive career responsibilities and successful professional achievements. Then, identify the skills you used to perform at that level. Emphasise your achievements and successes where you were a key member of a team. Boards must operate, manage and make decisions as a group, so leveraging strategic team-focused executive career skills is valuable.
The next thing to do is to articulate why these skills are valuable at board level, as part of your board pitch and board CV. You must address the concerns and challenges that a board typically faces. To help you do this, think about the primary macro and micro drivers of a board. They include (but are not limited to): risk, strategy, governance, and growth or influence.
At a micro level, address what could happen if someone like you with your skills were not on the board. What are the risks that an organisation could potentially be exposed to? Conversely, what are the benefits that could be realised by appointing someone like you?
Finally, by considering what boards are looking for outside of board experience and what executive skills are valuable at board level, you will start identifying the sorts of organisations that are likely to appoint you. You can read about how to define the organisations (your target list) that will value your skills here.
Additional Advice for those with no board experience
Look for boards that are focused on diversity
Boards and stakeholders recognise that board diversity is important. As a result of several reviews, including the FTSE Women Leaders Review and Parker Review, the UK has seen a substantial push to meet gender and ethnic quotas on boards.
There are several additional forms of diversity to consider, including religion, age, sexuality, transgender status, and disability. Organisations that prioritise enhancing board diversity will often overlook a lack of board or governance experience for diverse elements.
So, consider your diversity and how it is valuable at board level. For instance, being younger often means you are more eager, may be more relatable with some of the organisation’s customers and stakeholders, are tech-savvy and adaptable, and able to commit more time. Individuals with disabilities usually excel at achieving goals within team settings, have developed excellent problem-solving skills, and approach obstacles with confidence.
Can you offer lived experience?
Individuals with lived experience have faced challenges firsthand and bring invaluable insights to the decision-making process. This can also be applied to decisions being made in the boardroom. Many boards, particularly those that provide goods or services to those facing challenges, seek board members with relevant lived experience.
Some boards may not be aware of their organisation’s impact or potential impact on those facing challenges. Articulating how your lived experience can benefit a board may be worth much more than board experience.
Consider a voluntary role
We have all heard this piece of advice… start your NED career with a voluntary board or trustee role to gain board experience. However, there are many other reasons, personal and professional, why you should consider a voluntary board role with a not-for-profit, charity or trust organisation. The key here is to be selective with the role that you decide to take on. It must align with your passion, board and executive career goals, and time expectations.
Plan ahead and seek opportunities to gain experience
Most people want their board career to be a long one, one that may even continue after they retire from executive life. They acknowledge that they need to launch their NED career alongside their executive commitments. So my advice here is, firstly, to start early, even before you think you are ready. Everyone has to start somewhere, and like your executive career, the types of roles you take on will change as you develop more skills and experience.
Secondly, seek avenues within your executive roles to gain experience and develop a NED career. Look for opportunities to sit on committees or advisory committees with your current employer. Gain the support of your employer to take on a voluntary board role with not-for-profit organisations or industry associations that your company is affiliated with.
Finally
Gaining a board appointment can be highly competitive, which is why many individuals put off starting their non-executive director (NED) career. However, a recent study found that 50% of organisations with boards recruit a new board member within the last 12 months. Therefore, there are tens of thousands of opportunities available each year. Opportunities that your peers are getting appointed to, many of whom have little or no existing prior board experience.
I firmly believe that a range of skills and professional and personal experience should be represented on boards. Diverse boards make better, more informed decisions. Better decisions lead to better output and ROI on your appointment.
So, the question I think you should ask yourself is not whether you can launch a NED career with a lack of board experience, BUT which of your executive skills and experiences will be valued at board level and how to articulate that value.
One of the key services Board Appointments offers our members is helping them to identify and articulate their value at board level, regardless of the breadth or depth of their experience.
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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.