10 reasons why you should consider a board seat
I can confidently state that the demand for board members and the availability of independent board roles remain consistently high. What is evolving, however, is the growing recognition among professionals of the advantages such positions bring to their careers.
Why are board roles so popular, and why should you pursue one? I think that there are ten solid reasons why:
- A Supplementary Income – Independent board director roles can deliver a significant addition to your current income or even competitive income in their own right as a board portfolio holder. Whilst not all board roles are compensated, particularly in the not-for-profit sector, the role can lead to other paid opportunities. Some board members receive equity or shares in exchange for their service, which can provide a substantial future income stream.
- Business Development – Consulting or other business opportunities can also often be generated through the relationships formed whilst serving on a board. For example, I have never received income from my small NfP board roles, but I have consistently gained consulting business through the new relationships I established around board tables.
- Gravitas – You become part of an exclusive group representing about 5% of the community who hold board appointments.
- Strategic management success – Serving on a board requires you to develop and practice strategic management skills. Demonstrating these skills can be fundamental to advancing your executive career.
- Broaden your governance and diplomatic skills – A board appointment helps you develop governance and diplomatic skills. This enables you to work more effectively in other professional roles when dealing with management teams, stakeholders, clients, and individuals.
- Career Development – If you are in management and aiming for a promotion, you’ll likely need to demonstrate strategic and leadership experience. Serving on a board can provide this additional experience. These roles also showcase your ability to think broadly and collaborate effectively, all of which can significantly bolster your promotion prospects.
- Build networks that are leverageable – Even small organisations have significant directors on their boards, or members who sit on boards with other significant directors. For example, it is not uncommon to see directors on top commercial boards also hold roles on small charity boards. That means that sometimes fairly insignificant board appointments can open networks and connections with individuals you would not otherwise have access to. These relationships are highly leverageable.
- The desire to give back – A common theme among those serving on boards is that the role offers an opportunity to give back to an industry or cause they are passionate about. This is particularly evident when it comes to serving in a voluntary capacity.
- Stay relevant – As many people approach retirement or consider a slower pace of life, they seek part-time opportunities to contribute professionally and stay active mentally. Board and committee roles offer an opportunity to maintain your relevance in an industry you have devoted your life to, continue to contribute (albeit in a different way), pass on knowledge, and keep your grey matter moving.
- Stability – Board positions tend to weather the peaks and troughs of economic cycles and periods of change or unrest. In many circumstances, boards find it necessary to appoint additional board members to address new demands, risks, or organizational changes. This was also observed during periods of uncertainty, such as the Global Financial Crisis and COVID-19, making these roles a safe haven for many.
For these and many other reasons, regardless of where you are in your career (starting out, considering retirement, or looking to future-proof your career), a board seat must be part of your professional development. However, aspiration alone won’t secure you one.
Appointment success comes from mastering 3 things
Appointment success does not depend on whether you have board or CEO experience. Instead, it comes from identifying board roles that others cannot, therefore reducing competition for the seat. And pursuing roles that are a clear fit for your skillset. Your focus should be on these 3 things:
Target organizations – Focus on getting appointed to the boards of a select list of target organizations. The ones that you want and can be appointed to. Ask yourself these 8 questions when compiling your list:
- What types of board opportunities are available?
- What are my passions?
- How far can I travel?
- Do I need to get compensated?
- Who is going to value your skills?
- Are my connections valuable?
- How much time can I dedicate?
- How competitive are you?
What you have to offer – You need to clearly be able to convince decision makers, “Why they should appoint you”. You must have a compelling board pitch and board CV. You also need a complementary and up-to-date LinkedIn Profile.
The best pathway to an appointment – A board appointment will occur in one of four ways:
- 65% of people are directly appointed to a board through a personal or professional connection;
- 15% were appointed directly after approaching the organization or board that they wanted to sit on;
- 10% were appointed via a recruiter or recruitment firm, and
- 10% were appointed after they responded to an advertisement.
Notice that two of these routes account for 80%+ of all board appointments, so it makes sense to focus your efforts on the pathways the best results. Stop wasting your time on scrolling job sites for board roles, recruiters, and writing multiple applications.
If you have been trying to secure a board seat without success, it means you are doing at least one of these three things wrong. When you get these three things right, then, regardless of your level of experience, a board appointment within 12 months should be achievable.
Supercharge your career now
Finding suitable board opportunities can be an uphill grind. Getting appointed to them is even more so. If you haven’t yet attended one of my FREE Board Appointment Webinars, it is a good first step. You will learn more about the three pillars of gaining a board seat and how to unlock 80% of board roles through less traditional routes.
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About the Author
David Schwarz is CEO & Founder of Board Appointments. He has over a decade of experience in putting people on boards as an international headhunter and recruiter. He has interviewed hundreds of directors and placed hundreds into some of the most significant public, private and NFP director roles in the world.
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