How do women get Board experience if people don't put them on their Boards?
THE WIHTL & DIR WOMEN NED PROGRAMME
Designed for C-suite women leaders preparing to take on their first NED role, our unique programme is specifically designed to prepare women senior leaders for Non-Executive Director (NED) roles and support them in understanding the skills required, how to find and secure the right role, and how to add strategic value in the boardroom.
“This comprehensive programme is designed to equip individuals with practical strategies to build their network, raise their profile to secure an appointment, and add value in the boardroom. Over the course of six months, delegates have benefited from decades of experience from established NEDs and Chairs as well as leading experts in Board matters. This programme has been an eye opener and a career accelerator.”
Tea Colaianni , Founder and Chair WiHTL & Diversity in Retail and Diversity in Retail
Gaining practical advice from experienced Non-Executive Directors and participating in interactive case studies are key elements of the programme as well as discovering the latest interview tips from top industry headhunters and interacting with a variety of leading speakers who are experts in their respective field.
This article summarises the key learnings shared during the WiHTL and DiR inaugural Women NED Programme.
WOMEN EXECUTIVES: THE TRANSITION TO NON-EXECUTIVE DIRECTOR ROLES
Reaching Executive level may be the pinnacle of professional ambition for some women, but for those who are hoping to expand their knowledge further, to find the next challenge or to put their experience to use in a different environment or sector, taking steps towards a Non-Executive role could provide exciting opportunities for the future.
What does a NED do? International law firm, Slaughter and May outline what it means to be a NED as follows:
“A NED sits on a company’s Board of Directors and may be a member of one or more committees within that company. They bring an objective insight to the company on wider issues such as strategy although they are not responsible for or involved in day-to-day operations of that company. They are not considered employees.”
WHY BECOME A NED: CONSIDERATIONS AND GOALS
The 'why': what do you want to get out of it?
The ‘why’ behind wanting to become a NED is personal to each individual but it has been cited by incumbent NEDs we have spoken to as the single most important question to ask – prior to beginning due diligence and the application process. What are the reasons behind wanting to become a NED? Deep self-reflection on whether it is for increased status, for acquiring new skills or for a variety of other options, both personal and professional should be encouraged as a starting point.
Becoming a NED is a highly-competitive process which can take many months but it can also be a risk-reward balancing act. With it comes accountability and responsibility which may counter the allure for the many positives which include networking, remuneration and career advancement. Therefore, further key questions are: how badly do you really want it? How prepared are you if something goes wrong? Will you give up your weekends if that is what might sometimes be required?
Research and due diligence
One of many advantages of taking on a NED role is being able to work in a variety of businesses and sectors in which you have no previous experience. However finding the right ‘fit’ is vital for engagement in a role whose cycle can typically last for six to nine years. This is where spending time on solid research and due diligence really pays off. There are two sides to this: the more tangible elements such as, for example, geographical, which sector it is in, the size of the business and its governance, is it public or private equity owned?
There is also an intangible side: do the culture and values align with your own? Do you think you could really connect with the business and the people who work there? How does the relationship work between the Chief Exec and the Chair? Does the organisation’s DE&I strategy mean more than just ticking a box? Might you be pigeon-holed if you have been in one industry or in a narrow function for a long time?
Speaking to Board members and the Chair is essential to gain a true feel for the company you want to work for, including the Board and the role itself, and will help establish whether this environment is one you will enjoy working in. Being incredibly selective at this stage pays career-level dividends further down the line. Keeping an open mind, being tenacious and resilient, and being aware of the 1-in-10 rejection ratio are all characteristics needed to successfully find the perfect role.
PREPARING FOR A NED ROLE
"How do women get Board experience if people don't put them on their Boards?"
Kelly L. Kuhn , Independent Non-Executive Director/Strategic Advisor/C-Suite Executive
The age-old cyclical dilemma of needing experience in a role to get a role does not recede at senior leadership level, and having one functional skill is not enough to successfully become a NED. While there may be the right role for everyone, relevant skills are key but how do you broaden your experience with this in mind? Mentoring by a senior leader is undoubtedly a valuable tool but nothing works as well as hands-on experience.
Advisory Roles
Larger organisations may have in-house solutions which can provide opportunities for future NEDs through offering them an advisory or consultancy role. This could be with a subsidiary board or a regulatory committee, for example. The dynamics are very different to an Executive role in this capacity: it is more about listening, absorbing the information given, assessing this information and then giving guidance, sharing your experience, providing a different perspective, challenge and scrutiny. Such a position gives a softer path towards becoming a NED but shares a similar mindset and skill set, but helps demonstrate much-demanded experience for future NED transition.
Not-for-profit Organisations
Although usually unpaid, a role as a NED at a charity or not-for-profit can be a fantastic way to gain experience. While the dynamics are different in this kind of organisation, it allows for a more gentle introduction into the NED world, is a great way to meet and share ideas with other NEDs and has the added benefit of being purpose driven. Valuable experience is gained before taking on roles in larger or listed organisations.
CV
Solid research on what a NED profile looks like is essential and needs much greater depth and breadth of thought than what may have been previously required in an Executive career. Past experience and positions held are the cornerstones of any NED application but more nuanced details about each applicant and what they can bring is also a must.
In updating a CV for a NED role, demonstrating your USP and what you can bring to the boardroom will separate you from other candidates. Organisations are usually looking for NEDs who can bring new perspectives and intellectually challenge the status quo when appropriate. These aspects need highlighting in your NED application. How are you going to apply your experience in governance? What are your areas of speciality? What role will you play on the Board and how will that add value?
The debate continues on the optimum length of a CV but the general consensus is that two pages should be enough to create a succinct and well-crafted message. Advice from Elliott Goldstein , Managing Partner at executive search firm The MBS Group about how to formulate your profile includes adding a section with NED-related experience such as additional Non-Executive appointments (being a charity trustee, for example) but this section could also highlight generic skill sets such as P&L or investor relations experience, or managing a business’s IPO or digital transformation.
MBS also recommends spending time, effort and sometimes money on ensuring your CV is fully transparent, visually impactful and that it is refreshed at every role change. They suggest adding brief context around each company worked for (FTSE listed, sector, turnover, etc.) and that professional achievements are clearly quantified. Adding interests can be a discreet way of aligning with a Non-Executive role and make you more easily identifiable on executive search firms’ radars. Keeping to only one version of your CV is less time consuming and it is, after all, a factual document. More narrative around your suitability for the role can be included in a cover letter. Your LinkedIn profile should mirror your CV in short form.
GETTING SEARCH PARTNERS FULLY ON-SIDE
Executive Search partners should become your new best friends. Investing time and energy in developing deep relationships with several search partners will ensure a full understanding of who you are and what you are looking for in terms of a NED role. Headhunters have different styles, connections and specialities and it is key to getting to know them so that they know you and can put you forward for the right roles.
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Some of the larger executive search firms have a dedicated Board Practice which deep dives into board assessments, governance and other aspects, as well as placing NEDs.
What cannot be stressed enough is underestimating workload capacity. In the UK, 1-2 days per month is the norm but this does not include preparation nor travel time required. Nor does it count an intensive 3-4 month learning period at the start of an NED tenure. This is a medium-term commitment and the work is frequently done in spare hours – don't fall for flattery and take on more roles than are realistically manageable.
Sally Elliott , Co-leader, Global Retail Practice at Spencer Stuart highlighted that prior to reviewing potential NED candidates, executive search firms ensure they have a deep understanding of a company’s Board DNA. Your experience and background is then scrutinised focussing on whether you are a complementary addition and what you would bring to the table.
Having someone who can positively advocate for you and endorse your experience is hugely advantageous but due diligence around your knowledge of a business also speaks volumes. Have you physically been to visit sites? Have you checked out the competitor landscape or read analyst reports? Having such detail at your fingertips during the interview process makes your interest self-evident.
“What a brilliant programme. So much gained from superb and generous people on the ground, in the thick of NED territory. A very real insight into the opportunities and challenges of being a NED and how to navigate that as a first timer. I feel very much more informed about what’s involved and importantly the questions I need to ask myself and others as I explore a portfolio career.” Delegate
THE IMPORTANCE OF NETWORKING
Using your networks is unquestionably one of the most important steps when considering a NED position – and on varying levels. As a first step, find time to speak to NEDs within your current organisation to learn from their experience and how they themselves transitioned to a Non-Executive role. Better still, this is a great way to discover their impressions about you and your fit in terms of taking on a NED role.
“The NED programme was fantastic! It lifted the lid on the mystery of securing a first NED role and what it takes to be an effective NED. I met some impressive senior women leaders who are now part of my network.” Delegate
Introductions and/or references by your own network to executive search firms and other related contacts within your sector (and others) gives added credibility to your application, particularly if they are among female peers who are ‘over-boarded’ (i.e. they sit on four or five boards already) and could put other women forward.
In order to thoroughly gauge the dynamics of a Board as well as making yourself more memorable in the selection process, it is recommended that you try and meet all the Board members and the Chair. Jo Boydell , CEO of Travelodge Hotels Limited and Chair of the Audit Committee at DFS Group Limited , shared that the NED step has involved relationship-building on multiple levels with senior management, other Non-Executives and audit partners, and recognising a very different dynamic within the Boardroom. It requires an element of mental gymnastics to switch from a more hands-on CEO role to not overstepping the mark as a NED by getting involved in implementing strategy but adding value in other ways.
ONBOARDING & INDUCTION AS A NED
A Board Chair has to think long and hard about the risk involved in appointing a first-time NED. Once a NED is in situ, the risk can be mitigated with a thorough onboarding process and constant checks. It is important to ensure that the atmosphere created for a new NED is comfortable, not overly-intimidating and that it is very clear what is required.
If there wasn’t the opportunity before accepting a NED role to meet all the Board members, including the Chair, it should be a top priority during the onboarding process as it can take around three months to cover off everyone in their different capacities, functions and even geography. Building solid relationships with others on the Board, including the Chair, is time-consuming but necessary.
Newly appointed NEDs want to be able to add value and make a difference as soon as possible and that means immersing yourself in the business as much as possible, in a not dissimilar way as for an Exec role. However, there is a subtle difference in that a NED doesn’t need quite the same granular level of knowledge. NEDs don’t need to get involved in the same way Executives do and it is wise to hold off advocating solutions too quickly. This is for the long haul.
"I liken it to being a lifeguard. You spend a lot of time on the sidelines but you have to have enough understanding and expertise about the business that, when needed, you can really dive in."
Lynne Weedall - Senior Independent Director/RemCo Chair
TIME MANAGEMENT
"Don't underestimate how much time it takes to learn the business when you are not in it every day". Jane Bentall , Non-Executive Director/Board Advisor
It is easy to fall into the trap of believing that a NED role doesn’t involve a huge time commitment. When starting out, there is a vast amount to learn, especially if it is in a different sector to past Executive experience. If time constraints feature strongly in your NED ‘wish list’, it might be worth considering how to mitigate them through making wise choices up front. An organisation with a solid and experienced Board Chair may mean a need for fewer meetings, for example. Equally, a business who is lining up big milestones (like for example an IPO) will also mean more involvement with its Board.
PERSPECTIVES FROM THE CHAIR
A Board Chair will do their own due diligence in looking for the right mix of people: a composition which includes different personalities who will ask the right questions and challenge the perspectives of their peers, as well as depth and breadth in terms of skill sets and experience. They are responsible for creating the right atmosphere which allows for good alignment and decision-making but also for provocation of thought and introducing a different point of view.
This is not a straightforward science and there are no rules on how to do it. It is difficult to assess until Board members start to properly interact. Between the Chair and the CEO there needs to be a high degree of trust, and their relationship and communication can be a deciding factor in the success of the Board and how Board Members work together.
"A Board Member really adds value when they genuinely believe themselves that they can add value."
Ian Carter - Chairman Watches of Switzerland Group PLC
Board responsibility is towards a number of different stakeholders while always looking to the future, but guidance with strategic development is where their involvement provides added value to an organisation. Developing strategy and taking short-term decisions is up to the management team but, as needed, the Board will step in to challenge or submit revisions, and then to support its execution internally and externally.
BENEFITS OF BEING A NED
The core of a successful NED career is based around the very first question you should ask yourself: why do you want to become a NED in the first place? If this was given due consideration and diligence, the roles that follow should fulfil the sought for ambition and goals. Being a NED brings an element of flexibility and independence, allowing for a better work-life balance compared to an Executive role. The NED experience can bring great insights and can fast-track your career through flexing the skills you have already gained but in a different environment, learning new skills and expanding your professional networks.
“This program is incredible to help you understand the role of the NED and how to prepare yourself for that new experience.
It is a wonderful combination of NEDS and Chairs who openly share their own personal journeys and insights as well as professional experts coaching the key elements of NED's responsibilities.
More than that it is a wonderful opportunity to grow professionally amongst some very talented people, to be inspired, to learn and to take time to reflect on our own journeys.
Tea and her team are positive forces who bring great experience and warmth to the programme.
I would thoroughly recommend to anyone considering becoming a NED to participate in this programme. It has inspired me to take positive action and actively start seeking the right first opportunity.” Delegate
WiHTL and Diversity in Retail are two Collaboration Communities devoted to increasing equity, diversity and inclusion in the hospitality, travel, leisure and retail sectors. Our joint mission is to be a support in positively impacting 5 million employees in HTL and 1 million employees in retail by the year 2025. By working together, we can amplify the impact of member organisations' individual initiatives to create workplace environments which benefit everyone.
Contact us for more information on the WiHTL and Diversity in Retail Women NED Programme: info@wihtl.com or info@diversityinretail.com