How to secure your first paid board role

On your board journey, the most difficult paid board role to get is usually the first one you seek. But experts and directors say the roles that follow should be easier to land, as your experience will by then be demonstrated and visible.

When targeting your first board role, where do you start? To begin with, it helps to focus on areas you really care about, says Nicola Wakefield Evans AM FAICD, chair of MetLife Australia and a director of Viva Energy, Sonic Healthcare and the Clean Energy Finance Corporation.

“If you’re going down that route, go on the board of something you love, like a sports board or a charity you’re really passionate about.”

The first role shows you understand how boards operate — from the agenda to the meetings and minutes, the overall cadence of things and governance generally, says Wakefield Evans. 

A traditional approach has been to start by finding a not-for-profit (NFP) directorship. Given these are often unpaid, despite involving a significant time commitment, the competition is sometimes less fierce.

However, it’s important to understand what an NFP role will entail. 

“Often, with NFPs, there’s an expectation directors will contribute to income generation, either out of their own pocket or through their contacts and connections,” says  leadership specialist Peter Baines OAM GAICD, founder and director of the Hands Across the Water charity.

Find a mentor

If you’re hoping an NFP role might open doors to a paid role, the size of the organisation can sometimes help.

“Especially if it’s a substantial NFP, with others on the board — especially the chair — who can mentor you and perhaps give you introductions for potential paid board roles,” says executive recruitment specialist Richard Triggs MAICD, founder and CEO of Arete Executive and author of Winning the War for Talent.

Also, be prepared to be flexible. The general duties of a director are the same for ASX-listed companies as for NFPs, with the important additional burden of listing rules and disclosure obligations for ASX-listed companies. Board meetings may also be longer for more complex companies and might need to be held at antisocial hours.

“In some circumstances, you may have no say over the timetable for meetings,” explains Wakefield Evans. “Meetings may last many hours and, for ASX-listed companies, they may need to be held outside market hours. If you’re serious about a board career, make sure you understand what your time obligations might be.”

Continuous learning helps

There are other possible routes to paid roles, besides NFPs. If you work in a large organisation, you might get the opportunity to join the board of a subsidiary company. This won't necessarily involve further pay beyond your salary but, like an NFP, can broaden your network and  provide you with board experience.

Current or former company executives are also typically in demand, as are professionals, particularly lawyers, accountants and management consultants. 

Completing a company directors’ course can be an important first step. The AICD’s Company Directors Course is considered the gold standard. 

“You have to be a CDC graduate,” says Triggs. “You’re being compared  to other applicants, and if they’re a graduate and you’re not, you will be highly disadvantaged.”

Wakefield Evans concurs. “The CDC gives you the framework for operating in the Australian environment — your obligations and liabilities as a director, the roles of the people in the boardroom and practical guidance on how to deal with different situations. It’s a great way to upskill and be at the forefront of the latest developments in director law.”

Beyond that, it’s hard to gain additional specific qualifications, so you need to focus your search on areas where you already have skills and experience.

Skills matrix

These days, boards are being much more considered about having that right skills matrix, adds Triggs. “In addition to the lawyers and accountants, now they might be saying, ‘We need a social media, marketing or IT specialist’.”

Once you’ve decided where to target your search, the key is to get in front of as many directors and chairs as possible.

“I call the first year [of searching] the year of 1000 coffees,” says Wakefield Evans. “Part of it is to get known, but it’s also to work out what your value proposition is and get advice from people who understand the process.”

Triggs offers similar advice. “The reality is, perhaps apart from the largest companies, 95 per cent of board roles never reach the open job market. Boards recruit people they know and trust. So you need to identify the boards you want to join, identify the chair and reach out to them. Get in front of them before they know they need you. It’s part of the chair’s responsibility to build a bench of talent. They want to hire you, but they can’t hire you if they don’t know who you are.

“Let’s say you want to join the board of XYZ. The chair, Mary Smith, has a LinkedIn profile. You connect with Mary and reach out, saying, ‘I’m hoping to start a career as a director. Can you spare 15 minutes to give me some advice?’ Mary will look at your profile on LinkedIn and think, ‘This person looks reputable and has an interesting background’. So, she’ll give you 15 minutes.

“You meet with Mary and say, ‘What’s the pebble in your shoe? What keeps you awake at night?’ She will mention some kind of problem and, if you can demonstrate you can solve it, she might start to think of you for that next available board position.”

Sometimes the process will lead to a formal interview and these should be approached much like any job interview.

Show what you can bring

“You need to be really clear on your own unique skill set and how you would fit into a board,” advises Baines. “It’s no good just saying, ‘I’m a chartered accountant’. They may already have three. So you need to explain how your specific experience will fill a gap.”

“It might sound obvious,” says Wakefield Evans, “but dress appropriately and don’t accept any food, because you don’t want the distraction. Research the company and have good questions to ask. These are a way to show you understand the company, the  industry and the issues it’s facing. Also, do a background check on whoever is interviewing you. Hopefully, you’ll find something you can use as a conversation starter and make a connection.”

Triggs also recommends turning it around. Ask the company to list two or three key deliverables they would want. You can show them why you’re the right person to deliver.

Doing background research and asking the right questions will also help you decide if the role is right for you. “Sometimes, it’s as important to say no as to say yes,” says Baines. “It’s important to get roles that match your skills, where you can really make a difference. That’s the best way to enhance your reputation and get further opportunities.”

However, the perfect can be the enemy of the good. “I’ve seen people keep turning away opportunities, thinking they’ll wait for the perfect thing, but then it doesn’t come,” says Baines. “You have to start somewhere. After that first one, the second and third will be much easier to find.”