The ABCs for your first NED appointment

“Going plural" to sit as a Non-Executive Director (“NED”) on a number of company boards is still a popular choice for retiring executives. In the past, this was an easy way to remain connected with “city life” without a large time commitment. Chairmen were likely to use their existing network to identify NEDs.

Over the past 20 years the role of a NED role has become more professionalised; the time commitment has expanded; the external scrutiny has intensified; and the selection process has become more objective. In the UK, nearly all FTSE100 and the vast majority of FTSE250 NED appointments are now conducted using search firms overseen by Nomination Committees (‘Nomco’).

As a result, many executives discover that it takes more than a couple of well-placed phone calls in order to secure a NED role. Even for well-qualified individuals with the right approach it can prove frustratingly difficult to obtain the first NED appointment.

So what tips can we offer those seeking their first NED role?

Adapt your CV to become Relevant and Accept that your Profile will not always fit

With most NED searches, the company is looking for specific criteria to complement the existing skills, knowledge and experience on the board. By tailoring your CV to emphasise those criteria most relevant to each search, you can increase your chances of reaching the candidate shortlist. Include key words from the search criteria in your profile. Ensure that the search consultant (see Champions below) can convincingly articulate why your profile is relevant to the search.

Inevitably there will be roles where your profile does not fit. For instance, someone without an accountancy or finance background is less likely to secure an Audit Committee Chair role.

Be Proactive, Persistent & Patient

It is not uncommon to take 12 to 18 months or more to secure your first NED role. Although things are changing, there still is a tendency for boards to want NEDs with prior board experience so you can find yourself in the classic “chicken & egg” situation. It is important that you (or the search consultant on your behalf) can explain why you have the right attitude and approach to be a NED. Although, generally, someone with executive director experience finds it easier to secure a NED role, there is always a question as to whether the candidate can make a smooth transition to the less “hands-on” nature of a NED.

The search industry is quite fragmented. In order to have access to the broadest array of NED opportunities, you need to be on the radar screen of as many search firms with board practices as possible. This takes time and effort. Until you have a NED role you are unlikely to be on the BOARDEX database that is used by many search firms to generate candidate long-lists. Some search firms are better than others about sharing your profile internally amongst their consultants. You may need to meet a number of search consultants in the same firm. Most firms are proficient at matching your profile to an existing mandate that they have. Far fewer firms are good at remembering your profile after a few weeks or months. Therefore it is useful to find ways to regularly remain in touch with search firms and their individual board practice consultants. Think about things that you can do to help you stand out from the crowd. This could involve sitting on panels, talking to their staff on specialist topics and/or mentoring some of their key people.

It is important to dedicate time to achieving your first NED role. Given that NED roles arise throughout the year it is advisable to take a “little and often” approach to engaging with the search firms. Some say that it is necessary to spend up to the equivalent of one day a week networking. However it is important to be focused and deliberate in your networking efforts. Getting an introduction for a coffee with a FTSE100 Chairman is potentially far more impactful than attending many networking events where you are just one face in the crowd. Clearly for those with busy executive lives, it can be very difficult to carve out the time necessary. However if have your first NED role before “going plural” then the transition is much smoother and less stressful.

Although search firms play a much greater role in NED appointments than previously, it is still very important to network widely with existing NEDs and Chairs. If you work for a company with NEDs, they are often comfortable to pass on opportunities to you and to make introductions. Maybe you have former colleagues who are now directors on the boards of other companies. It is important to have as many conversations as possible with individuals who may have influence either directly or indirectly in the community of NEDs.

Even if you are doing all the right things, the reality is that there are lots of applicants for every NED role. Often your profile will not be a perfect match for the role and there will be others better suited for the candidate profile. For senior executives who are accustomed to succeeding most of the time, it can be quite a humbling experience if you do not reach a short-list or you “lose out” to another candidate after the interview stage. This needs re-framing. The reality is that there are likely to be 3 to 5 people on each short list who are equally well suited to the role and therefore an 80% failure rate is quite normal. Nevertheless it can be helpful to find search consultants who will give you direct feedback about how to position your CV for maximum impact and who will provide honest feedback about how to improve your performance at the interview stage.

Champions are important.

Search consultants are encouraged to present broad and diverse long-lists. However once the long-list is presented, the search consultant has no real incentive to promote your candidacy ahead of anyone else’s on the shortlist. Provided someone is appointed to the role, they will get paid. Yet some search consultants take time to get to know you and are much better than others at arguing for your inclusion on a shortlist. It is important to identify which individual search consultants are willing to do this and to build rapport with them. It could be a matter of “good chemistry” between the two of you. Having been in discussions with Chairs and Nomcos, I have seen some search consultants display courage and integrity to argue convincingly for the inclusion of a specific candidate on a shortlist. It really can make a difference.

Similarly it is helpful to build relationships with Chairman and other NEDs who are willing to promote your cause. Their voices can make a difference in the Nomco or when seeking feedback on shortlisted candidates.

Although these ABCs do not guarantee success in getting your first role, at least you know that you are far from being alone.

Annemarie Durbin sits on the boards of Santander UK PLC and WHSmith PLC. She is an executive coach and a board governance consultant. For more see www.AnnemarieDurbin.com