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Pathway to the Boardroom 2022
Nov 18, 2022
Derwent is delighted to have hosted three in person ‘Pathway to the Boardroom’ forums in Sydney, Melbourne and Perth. Over 200 attendees welcomed the opportunity to network with other aspiring Non Executive Directors and hear candid first hand insights from our guest speakers, these included Nicki Anderson, Stephen Health, Sandra Dodds, Bruce Rosengarten, Sharon Warburton and Jim Walker.
Key takeaways included:
- Transition to a Board career is a journey.
- Early on in a Board career it can be worthwhile taking on the Board roles that are seen as ‘risky’ by others, as this can give you a strong profile and launch a Board career.
- If possible, transition to a Board career slowly as this allows retention of an executive income. Consider taking on some consultancy or advisory work alongside your board roles.
- It is possible to have an Executive career alongside a Non Executive Director role, however you will need the support of the Chair of your day job. An advantage of doing it this way is it provides a different perspective and gives you the opportunity to work alongside a different Chair.
- It is important to define and clearly articulate your value proposition and brand.
- Networking and the use of Linkedin is crucial – show people that you are available for a Board role.
- Consider the time commitment carefully. It is not always a part time or predictable role.
- Ongoing learning and professional development is very important. Directors need to be constantly curious and scan both the domestic and international community.
- Due Diligence is imperative:
- Cultural fit is very important alongside respect for the Chair as leader of the culture. Low ego and authenticity are important traits
- Meet with the other Directors (read the body language) and identify if there is anyone in your network that has worked for the company
- Financial due diligence should include a check on the cashflow situation and a conversation with the Auditors
- Does the culture match the systems and processes, look out for consistent behaviours, read the media and be open to getting external help, e.g., what is behind the financials
- Be mindful that there is no perfect company, all businesses have challenges, which adds interest
- Understand the Chair, who they are, their style and values
- Onboarding: Have one-on-one meetings with the executive. Get out and visit the business. Learn the history and ask why certain decision were made. Go back to the Chair and CEO if you need more in your induction plan.
- Private and Family led Boards are very different to listed Boards, with a heightened focus on solving problems to keep the business moving (as it is their business at stake), less access to big data and the need to have patience over some issues as it takes time for the Founders to feel comfortable in making significant changes. When on a Board, you have far less power than when you are an Executive. This translates to understanding the importance of asking open rather than direct questions.
- Diversity on Boards should be viewed with a broad lens, it is imperative to have the right skills and capabilities but often these can be acquired through genuine diverse representation, as long as the focus remains on delivering the right outcome for stakeholders. Gender is just one piece of diversity, there are many other aspects to diversity of experience and perspective.
- ESG conversations at the Board level are about bringing together all the ESG corporate wide pockets of activity.
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Derwent welcomed more than 100 aspiring board members and guests to our Pathway to the Boardroom series with experienced Directors Joe Pollard and Debra Singh . Despite taking different pathways to secure their first board roles, both speakers emphasised the importance of building out executive experience and breadth before marking the transition to non-executive positions. There was also an emphasis on staying connected to the people who will keep you across the right board opportunities, which can be vastly different to executive networks. In exploring the journey to the boardroom, Joe and Debra uncovered some key tips and tricks including: understanding your passions and value add; a board career is not a part-time role; getting comfortable with rejection; and learning the art of the good question. Understanding your passions and value add: It’s important to find clarity in where you can add value, and what your experience is. Then consider target companies of interest that are aligned to those skills. Prioritise the things you are passionate about, as the subject matter will be more intuitive to you. When looking at board roles, you have to sell yourself more and establish your own value proposition and what you will specifically bring to the board table. Being a Board Director is not a part-time role: It is important to be across the detail as a Director; you can’t govern a business if you don’t understand it. There is still a significant and important time commitment associated with a board role. There will be times when you are in the trenches alongside other board members and executives. You may need to upskill yourself beyond your existing expertise in order to ask the right questions and provide the right governance. Invest time up front when considering if a potential board role is right for you. Spend as much time as you can with the business to get a true sense of the culture. Getting to know the chair and fellow board members will also enable you to build trust, respect, and foster constructive debate. Face-to-face time is important. Be comfortable with rejection: Get used to rejection. There is a lot of competition for board roles, and vast ranges of experiences and skill sets. You need to be able to bounce back from rejection, it’s a reflection of what the board needs at a specific point in time and not always a reflection of the candidate. Don’t waste a rejection, it’s okay to seek feedback from a board that did not appoint you. It can take time to get on a board, someone needs to take a risk on appointing you. ASX and public sector boards are typically the most conservative in their appointments. The art of asking a good question: Learning how to be a good Director is fundamentally different to an executive job. The art of asking a good question is extremely important so that you can govern and steer, rather than just bringing the right answer. There’s a skill to be learned from reviewing the papers and asking the right questions. Read the board papers thoroughly and ensure you have adequate information for decisions. Explore the non-technical areas – is this a team you can build trust and respect with? Ensure the board has similar values and moral compass to you. Have the courage to also reject the boards that aren’t right for you too. New directors can bring a fresh perspective, new dynamic, and prompt different thinking and questions. Learn the art of a good question and the difference between what questions to ask, what questions not to ask in a board meeting, and what questions to take off-line.
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