Maintaining a NED and an Executive Career

Maintaining a Non-Executive Director (NED) and an Executive role at the same time may be the best overall career decision you’ll ever make. Many people know this, which is why 90% of the people I work with desire a board appointment in addition to their executive role. It also explains why competition for NED roles is so high.

Quoting myself, “Those who hold a NED appointment in addition to an existing executive role earn more, are promoted more, have greater job security, have more career choices and find themselves with more options when entering retirement. But don’t just take my word for it. A recent study found that ‘serving on a board increases an executive’s likelihood of being promoted by 44%, and even if they weren’t promoted, their annual pay was increased by 13%”.

However, even when skilled executives recognise the professional benefits that an NED role can provide, they often remain reluctant to pursue NED opportunities. They also fail to realise that these benefits can also be sustained by holding a committee or trustee role.

There are several reasons why this may be the case.

Reason 1 – Not weighing up all the professional and personal benefits the role provides

There are a number of benefits and rewards to holding a board, a committee or trustee role along with an executive role. Unfortunately, many people seem to focus on just a few. They decide whether to pursue a NED role and which roles, without considering all the potential personal and professional benefits.

Whilst every NED and committee role is different, these are some of the common benefits you should weigh up:

• Career development – While sitting on a board, you learn the dynamics of group decision-making and the importance of stable governance. These insights can be invaluable in achieving outcomes in your current and future executive roles. You will know what information boards need to make and even influence their decisions.
• Strategic management experience – Strategic management skills and experience are essential in all senior-level management roles. It is also an area where the greatest advantages stem from ongoing challenges and experience. A NED role provides exposure to the strategic management functions of organisations outside of your current executive role.
• Relationship building – A NED or committee role provides the opportunity to build new personal and professional relationships. All sorts of amazing people sit on all sorts of boards. You never know where working with them will take you, personally and professionally.
• An opportunity to give back – It sounds coy, but it is a legitimate driver for many to become a NED. Unlike the pressures and constraints of their executive role, a NED role, particularly in the not-for-profit sector, provides them with the self-satisfaction of contributing to a community, cause or industry they are passionate about.
• Financial gains – You may be lucky enough to gain a remunerated NED or committee role that provides you with some additional income. However, many fail to realise that all NED, committee and trustee roles may provide opportunities for future financial gains via the connections you make. They may be in the form of another NED role, a new executive role, a consulting contract or lucrative leads.
• Easing professional transition – Having an NED role while working as a full-time executive will help with future professional transitions, such as semi-retirement or building a portfolio career. Many executives leave it far too late to pursue a NED role only to discover later that they have no NED experience. The task of getting appointed gets much harder, particularly for paid NED roles.
• Professional branding – Being able to call yourself a Non-Executive Director enhances your professional and social profile. It is an elite status that only a small percentage of the population holds.

Reason 2 – Concerns over the time commitment

We are all busy with work, family, social, and personal commitments, so concerns over how much time a NED role requires are very real. Generally, the time commitment is likely to be between 10 to 40 days in 12 months per NED role. But this, of course, will vary depending on the board, the organisation, and the current business environment they are operating in.

You also need to consider the extra or hidden duties that will require your time, such as travelling to board meetings, informal meetings, attending events and completing formal governance qualifications.

If you are a busy executive considering a NED, external committee or trustee role, you must consider the additional time commitment, as the repercussions of overcommitting could be detrimental. My advice is:

• Initially, don’t commit to more than one governance role external to your executive role.
• Do some additional research to determine the reality of the time commitment before accepting a role.
• Make sure that you can commit to the full tenure.
• Consider roles with hybrid meeting attendance policies.
• Get your current employer on board with your aspirations to serve as a NED. There are many benefits for them as well.

Reason 3 – Unsure what you have to offer as a NED

Many executives stall making a NED appointment a reality because they lack confidence. They simply do not know what they have to offer a board. They don’t know:

• which of their skills and experiences are valuable at board level,? or
• what organisation would be interested in having them on their board, or
• how to articulate what they have to offer as a board pitch or in a board profile.

Most organisations, when recruiting a new non-executive director, seek candidates to fill the gaps or complement the expertise of the current board and executive team. New NEDs can bring industry access, business opportunities and connections that the organisation would otherwise not have access to. For these reasons, you might find yourself and your skills highly desirable. My experience is that if you are in a senior executive role, you will definitely have plenty to offer a board, and the key is finding the right board to match your skills. Then, be able to clearly articulate what you can do for them.

Reason 4 – Unsure of where to start?

The final reason executives are reluctant to pursue a NED role is that they are overwhelmed and don’t know where to begin. Whilst they may be seasoned and successful executives, it may have been some time since they have applied for any role, let alone a board role, or they may have no board career plan.

What I find works is first defining the organisations you would like to be appointed to in the future. The big ones or the ones you consider incredible opportunities to contribute. Then, working backwards to define the organisations that may be a stepping stone to those longer-term aspirations if you were appointed to. The process of doing this exercise will help you develop a list of possible targets. These targets will give you some structure moving forward.

The next step is to draft a Board CV. Your Board CV should differ from your Executive CV and include your Board Profile. Finally, start telling people that you are looking for a board appointment and be prepared to explain the roles you are looking for. If you are clear about your aspirations, you never know who may have the connections to help.

Conclusion

Embarking on a non-executive director (NED) role at the same time as an executive role can be daunting. However, it presents an opportunity to leverage your expertise and insights in new and impactful ways. With the right approach, pursuing a NED role can complement your executive career, enhance your networks, and offer fresh challenges that stimulate personal and professional growth. So, take the first steps to embrace the possibilities that await you in the world of non-executive directorships.

If you want to learn more about where to begin, attend one of my Virtual Board Search Events.