Navigating the path from Technology Leader to becoming a NED

There’s a lot to like about being a non-executive director (NED), and it’s easy to see why so many leaders have their eyes set on such a role. It ticks so many boxes. ?

Have a strategic impact on a company and perhaps industry? Tick. Be exposed to different leadership styles? Tick. See issues from a board-level perspective? Tick. Forge new connections? Tick. Develop new skills and experiences? Tick. However, that’s not to say it’s the right fit for everyone. If you’re viewing it as something with low risk and high reward, then it’s best to look elsewhere.

Such considerations were on full display at a recent Spencer Stuart gathering in Barcelona, Spain, timed to take place just prior to this year’s Gartner IT symposium in the same city.

We had the pleasure to host a roundtable with senior technology leaders about how they can go about securing their first NED position with Tessa Bamford, Head of our UK Board Practice and FTSE100 NED herself, and Alberto Terol Esteban. Alberto was previously European President at Arthur Andersen and has been, among others, an experienced chair and board member at top companies, including IAG and the technology group Indra. Along with serving on several boards, he also advises private equity funds on their investment strategies.

There was much to discuss.

What makes a good NED?

Many NEDs are specialists, but they need to be able to look at things with a wide perspective and be able to contribute to the broader debate.

For technology leaders who are aspiring NEDs this means that they need to contribute by looking at the entire business through the prism of technology. They should be able to identify the commercial and risk impact and opportunities of advanced technology to the business. Being able to foresee the light and shade that generative AI will bring to the company, for example, is how they will deliver maximum value.

But of course, it’s not just their technical expertise that they should bring to the table. Intrinsic traits are equally important, such as calmness, exceptional communication, open-mindedness, and collaboration skills need to be part of the package. Board members need to stay composed when the unexpected happens by focusing on reading the situation and coming to an agreement on how to address it.

In addition, their high IQ needs to be matched by empathy and being a great listener. In other words, they need to be able to read people as well as board papers.?

So that’s what most boards are looking for — but what should aspiring NEDs be doing to turn their ambition into reality?

?

Action stations

A good starting point is to remember that the first board role will be extra important. NED candidates should research their prospective future employers in detail, understanding their priorities and issues.

Board composition should also loom large in their thinking. Candidates should look at the overall board composition as part of their research; you want to sit on boards with good, experienced and diverse people you can learn from. Equally, however good a candidate is, they might not be appointed as the chair has to consider the overall board composition.

Aspiring NEDs should therefore think hard about what type of board they should be interested in since it is a long-term commitment; one should assume that it is at least for 6+ years. So will you still be interested in contributing to and learning from that company, industry and challenges in that timeframe?

The balance of activities of the board work changes with size and form of ownership, too: the large, listed company might have an inspirational brand but a board which is more engaged in the governance process, whereas a smaller company may not be as well-known but have a board which is more focused on strategy.

Then, there is the time element to consider. A bank, for example, typically requires a more significant time commitment; 80 days a year is not unusual for a large bank. A smaller company, meanwhile, is more likely to require something like 25 days a year.

Whatever the size, candidates need to check the board regulations and expectations for the company as this varies from country to country.

This due diligence also needs to include a conversation with the CEO: your own and that of the board. First, make sure that your CEO approves of you joining a board before you engage seriously in a search process; there is a good chance that they will agree since you will bring back new perspectives that can help your company, too.

Then, as part of the recruitment process, speak with the CEO and as many members on the prospective board — chemistry, understanding the business context and the expectations for that particular board matter.

?

Are you interested in becoming a NED?

Update your CV with an NED lens. Candidates with a technology background must remember that their target reader will likely be a chair who might not possess a reservoir of technical knowledge. So, among other things, keep it business-focused, steer clear of jargon and make it a maximum of two pages. Highlight your experience working with Boards of client organizations and/or your own.

Required reading for anyone serious about becoming a NED is our handbook, Becoming a Non-executive Director, which contains numerous tips and suggestions which can help fuel your onward journey.

I know that as an employee of Spencer Stuart that I would say this, but prospective NEDs should get to know executive search firms — about 85% of board vacancies are filled via an executive search company due to the need for proper governance to be seen to be followed.

So if you’re a leader who is interested in exploring your options to become a NED don’t hesitate to drop me or one of my colleagues a line or give us a call.

What about your own board composition?

Would your board composition benefit from a revision? Perhaps it would benefit from a member with a technology lens, considering that technology continues to grow, change, enable, disrupt and attack industries. It becomes increasingly important that someone on the board can contribute with a technology perspective.

Let me know, or someone from our board practice around the world.

We’re waiting to hear from you!

?

?

?