BUILDING A PORTFOLIO CAREER AS A NON-EXECUTIVE DIRECTOR
Building a Portfolio Career as a Non-Executive Director (NED) can be an exciting and rewarding path for experienced business leaders. It allows you to leverage your expertise across multiple organisations. You will be providing strategic insights and governance while enjoying the flexibility and diversity of working with different companies. However, creating a successful portfolio career as a NED requires careful planning, strategic networking, and a lot of effort.
In this article, Michael Tait explores the key steps and strategies to help you build a successful portfolio career as a Non-Executive Director.
Understand the Role of a Non-Executive Director
Before embarking on a portfolio career as a NED, it’s essential to fully understand what the role entails. Non-Executive Directors are responsible for providing independent oversight and governance while helping shape the strategic direction of the company. They act as a “critical friend” to the executive team, offering advice and challenging decisions when and where necessary. More here
The key responsibilities of a NED include:
- Contributing to the strategic direction of the company
- Ensuring strong corporate governance
- Monitoring the performance of the executive team
- Providing oversight on risk management
- Ensuring compliance with legal and regulatory requirements
Unlike executive roles, NEDs do not get involved in the day-to-day operations of the business. They focus instead, on high-level decision-making and governance.
Assess Your Non-Executive Director Skills and Experience
To build a portfolio career as a Non-Executive Director, you need to assess your current skills, experience, and areas of expertise. Organisations are looking for NEDs who bring unique perspectives and knowledge that can add value to their board.
- Industry Expertise: What industries do you have significant experience in? Are there specific sectors where your insights would be particularly valuable?
- Functional Expertise: Do you have specialised skills in areas such as finance, risk management, technology, or human resources? Boards often seek out NEDs with deep expertise in key functional areas.
- Leadership Experience: Have you held senior leadership positions where you were responsible for strategic decision-making? Boards look for leaders who can bring wisdom and guidance.
- Governance Knowledge: Have you been involved in governance, compliance, or regulatory oversight in previous roles? Understanding corporate governance is essential for a NED.
Conducting a self-assessment will help you identify your strengths and the type of organisations to concentrate on.
Start with One Role
Building a portfolio career usually begins with securing your first Non-Executive Director role. This initial role will serve as the foundation for your portfolio, so it’s important to choose carefully. Look for a position that aligns with your expertise and interests, and that provides you with the opportunity to make a meaningful impact.
To find your first role:
- Network: Reach out to your professional network to express your interest in NED positions. Many opportunities are filled through referrals and personal connections.
- Join Relevant Organisations: Become a member of associations like the Institute of Directors (IoD). These organisations often have job boards and events that connect NEDs with companies seeking board members.
- Consider Smaller Organisations: If you’re just starting, consider applying to boards of smaller companies, non-profits, or start-ups. These positions can be a great way to gain experience and build your reputation as a valuable board member.Develop Your Portfolio with Diverse Roles
Develop Your Non-Executive Director Portfolio with Diverse Roles
Once you’ve secured your first NED role, you can begin to expand your portfolio by taking on additional positions. A strong portfolio career often involves serving on the boards of companies in different sectors, of different sizes, and even in different geographic regions.
Here’s how to diversify your portfolio:
- Variety of Industries: Consider roles in different industries to broaden your experience. Diversification allows you to apply your knowledge across various sectors, which makes you more attractive to potential boards.
- Balance Public and Private Boards: Serving on both public and private company boards can provide a mix of experiences. Public companies may require more regulatory and governance oversight, while private companies may offer more entrepreneurial and growth-focused opportunities.
- Consider Non-Profit Boards: Non-profit organisations often seek NEDs with corporate experience. These roles can be personally fulfilling and provide a different perspective on governance.
- International Roles: If possible, explore opportunities on boards of international companies. This will help you gain insights into different business cultures and governance practices.
Remember to balance your time and commitments. Most NED roles require a few days of work per month, but some boards, especially public companies, may demand more time. Ensure that you have the capacity to contribute effectively to each board on which you serve.
Continuous Learning and Development
To remain a valuable Non-Executive Director, continuous learning and development are crucial. The business landscape is constantly evolving, and NEDs need to stay updated on trends, governance practices, and industry developments. Here’s how to stay sharp:
- Attend Workshops and Seminars: Many professional organisations offer training programmes for NEDs. Regularly attending workshops on corporate governance, financial oversight, and board leadership can help you stay up to date.
- Earn Certifications: Consider obtaining certifications such as the Chartered Director qualification or the Certificate in Corporate Governance. These credentials demonstrate your commitment to governance excellence.
- Stay Informed: Read industry reports, white papers, and governance journals. Staying informed on emerging issues like ESG (Environmental, Social, and Governance) considerations, cybersecurity, and regulatory changes will help you provide valuable insights to the boards you serve.
Build Your Personal Brand
As a portfolio Non-Executive Director, your reputation and personal brand are critical to your success. A strong personal brand will make you more attractive to boards and help you secure more opportunities. Here’s how to build your brand:
- Thought Leadership: Share your insights and expertise by writing articles, speaking at conferences, or participating in panel discussions. Establishing yourself as a thought leader in corporate governance and board leadership will increase your visibility.
- Network Actively: Continue networking even after you’ve built your portfolio. Attend industry events, join relevant associations, and connect with other board members. Your network will be a key source of new opportunities.
- Maintain a Professional Online Presence: Ensure that your LinkedIn profile and any other online presence reflect your expertise and experience as a Non-Executive Director. Highlight your board roles, certifications, and thought leadership.
- Manage Your Time and Commitments
One of the key challenges of building a portfolio career as a Non-Executive Director is managing your time effectively. Each board role requires careful attention, preparation, and participation in meetings. Overcommitting can lead to burnout or a lack of effectiveness.
To manage your portfolio:
- Prioritise: Evaluate each role based on the impact you can make, and the time commitment required. Don’t take on too many roles at once.
- Be Selective: Choose board roles that align with your values, interests, and expertise. This will ensure that you’re passionate about the work and able to contribute effectively.
- Set Boundaries: Communicate your availability clearly with each board and ensure that you have enough time to fulfil your responsibilities.
Final comment
Building a portfolio career as a Non-Executive Director offers a unique opportunity to shape the future of multiple organisations while enjoying the flexibility of a non-executive role. By carefully selecting your roles, continuously developing your skills, and building a strong personal brand, you can create a fulfilling and successful portfolio career. Remember to balance your commitments and focus on adding value to each board you serve.
The newspaper The Guardian regularly advertises non-executive positions: The Guardian jobs