Whether you're looking to give back to a good cause or contribute to the community, or even follow something you're passionate about, the one question you need to ask yourself first is why?
Your 'WHY?' is something you need to be very clear about because it will ultimately drive whether you care enough.
In order to take on a board role it is imperative that you care for that organisation and its people. It's important that there is purpose and intention behind wanting the role in the first place and identifying your purpose is probably the most critical element because if you haven't nailed your 'why' the work is going to be too hard, and the complexities will get on top of you. But if you have nailed your why, that will drive you through the heavy lifting.
There are also different types of governance structures, suited to different types of entities, from advisory boards, councils, boards of trustees through to the most commonly known in the New Zealand context, the board of non-executive directors.
Sometimes governance groups may label themselves as one, such as an Advisory Board, but actually assume the legal responsibilities of a Board, so undertaking a governance position needs to be well thought through.
A common misconception is that NFP boards are the easiest roles for emerging directors. Yes, they are more accessible, but beware. The work in this space can be very demanding and challenging for a number of reasons – such as very limited resourcing made more challenging in a Covid operating environment, the inability to raise capital in the same way a listed organisation can.
At the Institute of Directors (IoD) we advise our members and provide due diligence checklists and other tools to support people going into those types of boards to guide them through the kinds of issues that might present.
Valuing mentorship
People learn in different ways and in dipping your toes in the water, mentoring is critical and is part of that learning ecosystem.
Being mentored in any kind of executive or governance position will give you rich insights that you won't be able to garner just by reading a book. Being on a board is an intellectual challenge and a relationship challenge where you're constantly on the go.
IoD released a paper 'Always on duty' and that is a really apt title because even when you think everything is okay, you still need to be scanning and questioning whether that is the case or not. As an example, do you know if slavery exists in your supply chain, and do you have a policy for that? And how will you know if your policy is being applied effectively?
It could be easy to think that just because nobody has told you, or that the media hasn't yet caught wind of it, that these things don't exist in your company or organisation. But by the time you do find out it's going to be too late. So even when there is a calm period you need to be thinking and constantly questioning, and a mentor is really important.
For a lot of people that isn't always a natural default, so having someone to coach and mentor you through that is a real opportunity to grab with both hands.
Age is just a number
We live in an ever-evolving landscape and there is room for a generation of future directors who understand the data and tech landscape, along with myriad social and ethical complexities that are present in today's environment.
Tech startups employ people who have exceptional experience that would serve a board really well and the demographic tends to veer younger. Sometimes age can determine 'lived' experience, but the board needs to identify whether they have that experience at the table already, and know what 'good' looks like - that has nothing to do with age.
So if you're under 30 that doesn't make you too young for a board role.
Being on a board means having a thick skin and resilience is important because your ideas will be challenged - that's a good thing providing it is done respectfully. You can't be someone who is easily offended because that would be a poor attribute to have on a board.
You also need to know that doing courses and getting a mentor or even being at the top of your game in your chosen profession won't guarantee you a seat at the table. But doing these things is a great way to upskill and grow your knowledge, and ultimately set you up to have ongoing conversations and network with people who will share a similar kind of passion. So again, nailing your 'why?' is really important.
But don't be disheartened by rejection either because even top executives might have preconceived ideas about what governance is and decide it isn't for them. Good governance takes a lot of work by more than one individual. It is really hard and requires a strong group dynamic grounded in a range of expertise and experience from individuals who want to pull together to make a difference. Equally, it's really rewarding.
• Michael Fraser is GM Learning & Branch Engagement, Institute of Directors.
