What is a non-executive director?
A non-executive director (NED) is a member of the board and is not involved in the daily operations or management of an organisation. Instead, their focus is on advising the CEO and management team whilst providing an independent perspective during the decision-making process.
A non-executive director can come from a range of backgrounds and will typically require diverse experience at a senior level. There are some skills however that are essential when it comes to being an effective non-executive director.
Examples of these skills are as follows:
- Independent mindset, objectivity and integrity.
- Diplomacy, tact, and negotiation skills.
- Commercial and business understanding and insight.
- High level interpersonal, communication and listening skills.
- Strategic thinking and analytical capabilities.
- Curiosity with the ability to challenge and seek clarity.
- Governance and regulatory knowledge.
Obtaining a role on a board
The market for non-executive directors can be quite competitive and it can be particularly challenging to land your first non-executive director role. Once you have secured your first board role and have developed relevant experience, subsequent appointments will become easier to obtain. For many non-executive directors their initial experience is gained on the board of a charity or not for profit organisation where they join in a voluntary capacity. This can also often take the form of joining the board of your local sports club or school and utilising this opportunity to build on your experience, which you can later leverage to secure a board role in other commercial or larger organisations.
Importance of your network
Board roles are very often secured through contacts, so an important part of the process of sourcing a board role and building your portfolio is to ensure that you have a strong network of contacts that you can tap into. In many instances a personal recommendation or introduction is the first step to successfully securing a board role. If you are planning to build a career as a non-executive director, it is essential that you start investing in your network as early as you can.
Tailor your CV specifically to board roles
As with all application processes it is important to have a CV ready to circulate should you be asked to apply for an opportunity or if you come across details of a role that you are interested in. It is advisable to have a tailored version of your CV that specifically highlights and showcases your experience and skills from the perspective of the requirements for a board role. In other words, your CV is specifically crafted and written with board roles in mind.
Upskilling/staying up to date
There is a strong onus on non-executive directors to remain up to date in their area of expertise, as well as from a governance, legal and regulatory perspective. This can be achieved through the exposure you gain or have gained within your own full-time role, attending courses and indeed by reading material available through a wide range of resources, many of which are available online.
Find a mentor
A mentor can be a valuable resource when it comes to getting advice and guidance either in relation to securing your first board role or indeed as you navigate the intricacies of the board room. Leveraging the skills, knowledge and experience of another professional who has extensive experience in this area can be hugely beneficial.
Institute support
The Careers Advisory and Recruitment team are available to provide guidance and advice. Email careers@charteredaccountants.ie to arrange a confidential consultation.
Relevant links:
https://www.charteredaccountants.ie/professional-development/Career-Development/Careers-Advisory
https://www.charteredaccountants.ie/professional-development/Career-Development/Careers-Advisory/Mentoring
https://www.charteredaccountants.ie/professional-development/cpd-courses-and-networking-events
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