A Guide to NED Roles

Embarking on a career as a non-executive director (NED) of a public or private company requires careful preparation and planning. This guide provides aspiring NEDs with a roadmap to navigate the complexities of obtaining a seat in the Boardroom and the pursuant responsibilities of corporate governance. From gaining relevant experience to developing essential skills and building a robust professional network, each aspect should be explored to ?equip individuals with the knowledge and tools needed to land a NED role.

Gaining Relevant Experience:

Gaining practical experience in executive or senior management roles within one's industry or related fields lays the groundwork for a successful NED career. This first-hand experience provides valuable insights into corporate governance, strategic decision-making, finance, and operational management.

Serving on the boards of non-profit organizations, private companies, or smaller public companies offers invaluable boardroom experience and exposure to governance practices, enabling individuals to build a track record of leadership and oversight.

Understanding Corporate Governance:

A deep understanding of corporate governance principles, regulations, and best practices is essential for aspiring NEDs. This includes familiarity with the roles and responsibilities of directors, board committees, and the relationship between the board and management.

Staying updated on emerging trends and developments in corporate governance, such as regulatory changes, shareholder activism, and board diversity and climate governance initiatives, is crucial for informed decision-making and effective boardroom engagement.

Developing Financial Literacy:

Financial literacy is a cornerstone of effective board oversight. Aspiring NEDs should enhance their understanding of financial statements, accounting principles, and financial analysis to assess the company's financial performance, evaluate risk management strategies, and make informed decisions about capital allocation.

Pursuing relevant qualifications in finance demonstrates a commitment to ongoing learning and development and strengthens one's financial acumen.

Building Industry Expertise:

Deep industry knowledge is a valuable asset for NEDs. Staying informed about industry trends, competitive dynamics, and emerging risks and opportunities enables individuals to bring valuable insights to board discussions and decision-making processes.

Attending industry conferences, seminars, and networking events facilitates professional networking and provides opportunities to stay abreast of industry developments, enhancing credibility as an industry expert and board candidate.

Developing Leadership and Communication Skills:

Strong leadership and communication skills are essential for effective boardroom engagement. Cultivating strategic thinking, decision-making, and conflict resolution skills enables individuals to navigate complex board dynamics and drive positive outcomes.

Participating in leadership development programs, public speaking workshops, or executive coaching enhances leadership and communication abilities, positioning individuals as effective communicators and collaborative team members in the boardroom.

Networking and Building Relationships:

Networking plays a critical role in securing NED opportunities. Connecting with current and former board members, executives, and industry professionals facilitates mentorship, guidance, and access to board roles.

Joining professional organizations, industry associations, and networking groups provides opportunities for engagement, knowledge-sharing, and visibility within the corporate community, increasing the likelihood of securing board positions.

The practical steps of this journey include:

1.????? Build a two-page Board CV which should include:

a)?? ???A concise overview of your career clearly stating your value proposition

b)????? A list of your current Board roles and the committees you are on

c)????? A list of previous Board roles and the committees you were on

d)????? A reverse chronical list of your executive roles

e)????? Your qualifications and association memberships

?2.????? Build an appropriate LinkedIn profile. This is your personal brand i.e. the way you would like the world to perceive you. Consider it your “marketing brochure” or “personal web page”, not a CV. You must give people a reason to approach you for NED roles. Make sure you show that you are open to opportunities and provide contact details. Consider the benefits you bring to a Board and communicate these in the “About” section of your profile.

3.????? Drive traffic to your LI profile. Connect with as many senior people as you can. Your LI profile is not private, it is public, and you should use this to promote yourself. Express yourself how you want the world to see you. Once you have redesigned your LI profile, you can drive online traffic to it by writing articles, endorsing others, joining relevant groups, commenting insightfully on blogs etc. These actions will get you attention and place you front-of-mind with your connections, Search Consultants, and the broader senior executive community.

4.????? Complete a Company Director’s Course and become a member of an institute dedicated to supporting Company Directors with education, networking, and job opportunities.

5.????? Network! Network! Network! Go to seminars, functions, meetings, and network with other Board members. Make it known that you are looking for NED roles and that you would appreciate their help if they hear of anything.

6.????? Become a member of organisations that advertise NED roles so that you’re aware of opportunities as they arise. Also keep watch on job boards, business social media, and financial journals for ND advertisements.

7.????? Complete pre-qualification schemes for Government Board positions (including advisory boards) and joining director and governance institutes.

8.????? Find a mentor or executive coach to help you with your search and ensure that you understand your value proposition and can articulate it concisely at interviews and discussions.

9.????? Contact Executive Search firms to make sure that you’re on their radar. You should make sure that they all know that you’re OK with advisory boards or NFP boards. This will work to your advantage as you will meet other NEDs, some of whom may be on public boards.

10.? Get involved in Audit and Compliance committees. Yes, most people want to be on the Strategy committee, but a large part of your role will be governance and compliance and a high proportion of NED roles require that you have this experience as it is critical in the proper governance of a Board – particularly publicly listed entities and Government Boards.

11.? Make it known that you’re looking for NED roles. Too often approaches are not made due to incorrect perceptions of workload, the desirability of a particular role, fear of rejection etc. You need to get the word out in the right circles that you’re interested in considering at all NED opportunities.

12.? Identify several organisations, associations, NFP, Sporting Clubs etc. that you would be interested in and introduce yourself to the Chair. Don’t be shy to ask for an introduction from someone else.

Conclusion:

Building a career as a non-executive director requires a multifaceted approach that encompasses gaining relevant experience, understanding corporate governance, developing financial literacy, building industry expertise, cultivating leadership and communication skills, networking effectively, and ensuring that you understand your value proposition and are able to promote yourself. By following the comprehensive guidance outlined in this review, aspiring NEDs can position themselves for success in the boardroom, driving value creation and contributing to the long-term success of private and public companies.

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