You’re thinking about joining a board – what next? Simon Telfer, founder of Appoint Better Boards and Stimulus board advisory in New Zealand, and Lisa Cook, founder of Get on Board Australia, discuss the pros, cons and next steps.

Why join a board?

As a board member, you need to apply your finance, risk and accounting knowledge to challenges in a different environment and, often, an unfamiliar industry.

“This doesn’t just stretch your skills, it exposes you to new regulatory and business models, and broader applications of risk management,” says Telfer. “That’s invaluable professional development for an executive or manager. You could also have the satisfaction of making a difference for social good.”

Skills to build

Every board needs financial management expertise, but a good director has more to offer than technical ability.

“Most boards value independent thinking, credibility, curiosity and a strong sense of self-awareness,” says Cook. “You also need the confidence to speak out and the ability to work as part of a team. Never forget the importance of softer skills.”

Duties and responsibilities

As an accountant, you’ll be familiar with some boardroom responsibilities such as financial oversight, risk management and compliance. There are also core duties defined under Australian law in the form of the Corporations Act 2001 – the duty of care and diligence, the duty to act in good faith in the best interests of the company, and the duty to avoid conflicts of interest. New Zealand board members must follow the same core duties, outlined in the Companies Act 1993.

“The board has the highest level of accountability in an organisation, so it’s very important that you understand and feel comfortable with that,” says Cook.

Do you have time?

Beyond regular meetings, a board position can take up a great deal of time.

“You need to prepare for each meeting then, afterwards, review the minutes and complete any action items assigned to you,” says Cook. “You may be asked to join or chair a committee, to take part in stakeholder engagement, attend activities and events, make site visits and attend one- or two-day strategy sessions, as well as the AGM.

“If there’s ever a crisis, the board might meet weekly or even daily. It’s vital that you understand what the role involves before you commit and are realistic about what you can and can’t do.”

How to get started

Cook strongly recommends setting a board goal and developing your unique board value proposition.

“Ask yourself what you have to offer and where you reasonably and realistically have the capability to serve,” she says. “Is there something beyond your accounting expertise that could set you apart? For example, when I joined the board of the Stroke Foundation, I had the governance experience they were looking for and I also had lived experience with stroke.

“Once you have a compelling story about why you're a great candidate for certain boards, you can then use your network to source these board opportunities.”

Should you approach a board recruiter?

It may help to engage with a board recruiter or a board search firm but, again, you need a compelling story. “You can't just ring up and say, ‘Here’s my executive summary, I want to get on a board’,” says Cook.

Telfer has found that, in his experience, a recruiter will be most helpful when you already have a board position and are looking to expand your portfolio.

“In New Zealand it’s more common for board roles to be advertised, so that’s a more realistic option. Networking is also important. Clients who are willing to pay a recruiter to find board members are generally looking for really experienced directors. They could probably find aspiring board members in their own networks.”

Is a not-for-profit board a good first step?

Aspiring directors are sometimes told that volunteering on a not-for-profit board is a good stepping stone to a commercial boardroom career. However, unreliable income, dependence on volunteers and mission-driven passions can make the challenges even more complex than those on a commercial board.

“Your first opportunity might come via a not-for-profit as they tend to have larger boards and higher board member turnover,” says Telfer. “These roles should be treated with respect and not just a place to ‘cut your teeth’.”

Don’t wait too long

If you have your sights set on a boardroom career, Telfer strongly advises starting earlier rather than later.

“Consider it part of your professional development,” he says. “I’ve had many people tell me they wished they’d started their board career sooner. No-one ever said they wish they’d left it till later.”

Take away

Boards value diversity to provide many different perspectives and experiences. That’s a huge opportunity for young CAs who are interested in governance and a board directorship. To find out more, read this Acuity article: ‘Should your company be on the hunt for young directors?’.