Can I become a NED with no Board Experience?
Many believe that only existing or past NEDs get board appointments. As such, one of the most common questions I am asked is, ‘Can I be a Non-Executive Director (NED) without existing board experience?’ When it comes to advertised NED roles, board or governance experience is usually listed as a required or highly regarded skill for the successful candidate. While searching for board roles, aspiring NEDs read these vacancy ads and wrongly or rightly assume that they need board experience to become a NED. There is no yes or no answer. It comes down to the NED role you are applying for and the unique value you can add to the role.
The reality of NED appointment
Not everyone who gets appointed to boards has board experience or was a past CEO. Whilst desirable, in many cases, your prior NED experience, or lack thereof, alone will not make the difference during the appointment process. There may still be some old-school board chairs that insist on board experience, because they perceive candidates without it as a risk to their reputation. They feel safe appointing someone who has done the job before. However, if you have unique skills, knowledge, experiences or connections that the board deems valuable, a lack of board experience is often overlooked.
According to the UK Spencer Stuart Board Index, in 2023, 222 new board members were appointed to the top 150 companies. Even at this corporate level, only 31% of these directors were appointed for the first time, and only 27% had a CEO background.
I regularly speak with current NEDs and members seeking subsequent NED appointments, who tell me that their existing board experience is no guarantee of gaining a future board appointment. The key is seeking appointments that are a good fit.
First, determine how much board experience you have
Whether you are writing a board application or being interviewed for a NED role, you must always articulate your board experience. However, if you are just starting out, you may not feel you have failed at this first hurdle. This does not need to be the case.
If you have no board experience, you should shift your focus by asking yourself – ‘Can you operate effectively on a board?’ and ‘Can you transition from an independent decision-maker to a group decision-maker?’ If your answer to these questions is yes, you need to articulate how you can achieve these, ideally backing your statements up with supporting examples and achievements.
Next, consider your board-level experience – you might be surprised
The pivotal phrase here is ‘board-level experience’.
If you have, you can use this experience to reassure a prospective board that you can operate effectively in that environment.
If you have no board-level experience, is it possible for you to manufacture it? Can you join or set up a committee within your workplace? Can you volunteer to serve on a local committee? Have you considered a trustee role? Can you develop relationships with the board members or past board members? These proactive approaches help you develop a narrative about your board-level experience and provide comfort that you are not a risk.
Remember, having board-level experience is about providing comfort to the appointing entity and de-risking your potential appointment. One way to do that is to demonstrate your board-level experience, but there are others.
Know your value at board level
One key to gaining a NED appointment is understanding your primary skillset and why it is valuable at the board level.
There are many organisations that do not require governance experience on their boards or already have sufficient governance experience among the other board members. For them, your unique skills and experience are more valuable than your board experience. You need to show how your skills and experience can help the organisation grow or mitigate risks. You can do this by rephrasing into a statement how your executive experience is valuable at board level and why you should be appointed. Not generically but specifically.
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Know what organisations are likely to appoint you
Not every organisation will value every skill set; some will require more board experience than others. Others may already have board members with your expertise and skills. For example, not every organisation needs a lawyer or accountant on their board, but an IT expert would be valuable.
Balancing the expectations of your first NED appointment against the reality of which boards or organisations would appoint you is essential. This is even more critical if you do not have any board experience. Be clear about what board is right for you, and spend time finding your ‘perfect board match’.
Be critical and, if necessary, revise your expectations. By doing this, you will receive a greater return on your efforts by not wasting time chasing NED appointments that are currently out of your reach.
Your networks count
Beyond having a valuable skillset, you should consider the value of your connections.
This can be a significant factor for organisations appointing a new NED. They seek candidates who, through reputation or connections, can help them open doors and develop new business opportunities or markets.
The first step here is for you to review who you know – individuals, businesses, industry or sector contacts. Then ask yourself, ‘Who would be interested in these connections or would value the gravitas you could bring via these connections?’
The answer to these questions will be the start of your target list. You can then articulate your value to these organisations – regardless of whether you have board experience.
Get NED experience
Consider the common phrase, “The world is run by people who show up.” When it comes to being a successful NED, ‘turning up’ is significantly powerful. A highly accomplished NED shared that her board career started with an appointment to a distinguished institution, initiated by showing up and actively engaging with the organisation.
So, turn up whenever your target organisations run events or promotions. Contribute to their charity, fundraise, or volunteer your time or expertise. Become a known quantity and ask them, ‘How can I help?’. By doing so, you may be the first to hear about a committee, advisory board, or even NED opportunities.
Alternatively, take an unpaid NED or trustee role at a charity or not-for-profit organisation. People with accomplished commercial experience are always welcome. For some, a voluntary NED role can make the transition to a more significant NED role easier. Regardless, you earn yourself the title of Non-Executive Director, which you can leverage in future applications and interviews.
Access NED experience
Consider teaming up with a NED mentor. In particular, someone who has a board career you would like to emulate. Ask for advice, but also ask them to share their knowledge and experience in the workings of a board. This will allow you to get comfortable with the language, management styles and approaches that you can refer to during your board search and appointment process. They may also be willing to vouch for you or provide introductions to members of their NED network. But remember, mentors are just that; their role is not to get you a board role but rather to support you and manage your expectations.
My final piece of advice
It is not a journey – it is a process.
People often describe the path to a NED appointment as a journey; I believe it is far from it. Whether you are an experienced NED or just starting out, there is a designated process you should follow. Doing so allows you to find opportunities others can’t and get appointed more often.
It can take some time to get appointed, whether you have board experience or not. However, regardless of your level of experience or skills, following a clear process should allow you to achieve a board appointment within 12 months. If you want to know more about finding and gaining a NED role, consider attending one of our Board Search Events.
Interesting
Senior Business Leader | Business Optimisation | Growth and Development | Non-Executive Director | A critical friend to the board
1moCertainly tough getting your foot in the door, with board experience, so I imagine harder still without.