Experienced chairs explain what they look for in novice directors and provide insider tips on how to make yourself a standout board candidate.
Ravin Mirchandani GAICD doesn’t hesitate when asked how ready he was for his first board role on a listed Indian company in 2006.
“The honest answer is, no-one is prepared for their first directorship.”
Carolyn Mitchell FAICD, an experienced business coach and mentor who has a substantial directorship portfolio including several chair positions, is equally frank recalling her preparedness two decades ago for life in the boardroom.
“Not at all. I knew how the Corporations Act worked, but that was about it.”
Now, as chairs, their experiences provide context when they see aspiring directors putting themselves forward for their first board roles.
Mirchandani remembers his nerves as a novice, when he was unsure of whether his focus should be strategic, executive or governance.
“You learn along the way that the role of a director is almost like riding a bicycle on a really wet road,” he says.
“There’s a very gentle leaning you have to do to either side, feeling your way through.”
Take a measured approach
Mirchandani holds chair positions in his home country India and in Australia, where he heads Acusensus, which uses technology to tackle distracted driving being carried out globally and to encourage behavioural change on our roads. He recommends a measured approach to entering the boardroom, reflecting that he was too hands-on in some board positions and too hands-off in others. “Both had bad endings.”
Acusensus uses a director skills matrix when recruiting for board positions, overlaying a candidate’s skills and experience against the company’s strategic vision for the next five years to see if applicants fill any gaps or blind spots.
Matching experience to the size of the organisation is another consideration, because an approach that works in a relatively small $100 million company could be a mismatch in a $10 billion giant and vice versa.
Be effective
“I also look for whether directors are comfortable in the grey,” says Mirchandani. “It’s very easy to be a black-and-white director, but as I said, it’s like cycling on a rainy day — you have to know when to pull back and when to push. A director who is comfortable with the grey understands the job is to be effective, not necessarily right all the time.”
As a first-time director with a lawyer’s background, Mitchell backed herself on governance, risk and strategy, but knew that understanding complex financials was her room-for-improvement space.
“There’s a bit of bluff and bravado when you start — you don’t want to tell anyone you’re hopelessly incompetent.”
Several boards on which she sits feature first-time directors, some who were deliberately chosen to fill gaps in cyber, tech and other niche areas and others who meet a need for generational change.
She doesn’t believe there is anything particularly special about a director’s role. Rather, she sees it as a particular way of thinking that intelligent, passionate people “will do in spades”.
As with any endeavour, enthusiasm is a good starting point.
Have courage
“It’s having the courage to ask [what the chair is looking for] when you’re a newbie and that’s not always easy for people,” says Mitchell.
“But if they get to the situation of being face-to-face or at a coffee catch-up, those who have put themselves forward are genuinely interested. They want to know what you’re looking for. They want to do the job.”
TIPS FOR ASPIRING DIRECTORS
Offer to be on a subcommittee
Mitchell advocates that aspiring directors should essentially give boards an opportunity to try before they buy, by putting themselves up for election to a subcommittee before seeking a seat at the board table. “On a subcommittee, you’re learning all the same skills you will exercise in the boardroom,” says Mitchell. “You can bring whatever expertise you’ve got into sharper focus on a subcommittee, then find your way onto a board that way.”
Make sure you’re the right fit
Mirchandani finds clarity in recruiting when the candidate’s values align with those of the company. “We’re about road safety, so we will ask the candidate to furnish their previous road safety record, how many demerit points, how often, and so on,” he says. “That’s how we recruit for the whole organisation. These are important for us — it shows the values of the person you’re bringing on board.”
Look for a connection
Mitchell notes that first board roles generally either reflect the person’s day job and skillset or the choice of an NFP they’re passionate about. “So, have a think about the sorts of things that appeal to you. Who do you know? Look at the sorts of organisations you’d like to be involved with and see if you know someone — either on the board or who knows someone on the board — and ask for an introduction.”
Bring your whole self
Mirchandani says new boardroom appointments should never be rushed, advocating “six or seven meetings” held in a range of settings — formal, over dinner or even during a walk. He implores aspiring directors to use those different environments to show all of themselves. “Because what you want is for someone to bring their whole unvarnished, unadulterated, vulnerable self to the table. Only then can you see their strengths and weaknesses, so you have to create an environment where they can be that.”
Do the AICD Company Directors Course
As first-time directors, both Mitchell and Mirchandani made a priority of doing the Company Directors Course. Mitchell encourages completion within six months of taking a directorship. Mirchandani found it invaluable in defining each person’s roles and expectations. “It’s the best tool around the world that I’ve seen for helping first-time directors prepare for what’s expected,” he says.
Practice resources — supporting good governance
AICD’s Policy team supports members with guidance on governance issues, including:
- A director’s guide to mandatory climate reporting Version 2
- Directors’ Oversight of Company Compliance Obligations
- Directors’ Guide to AI Governance
- Director Self-assessment Tool
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