Changing face of boards draws strong interest

AUTHOR: Lachlan Colquhoun   DATE: 23.11.06   ISSUE 2, 2006

The transition has opened up board membership and made it both possible and attractive for younger people to consider as a mid-career option, usually in combination with other board memberships and roles operating their own businesses.

This changing landscape was the subject of an AGSM seminar held in September entitled, “Want to be a Board Director?” and the popularity of board roles was reflected in the participation of around 70 people.

The seminar heard from three speakers well acquainted with what it takes to get onto a board, and also what the role entails.

Non-executive board positions are increasingly popular as both men and women seek portfolio careers to achieve better work/life balance.

Illustration: Gregory Baldwin

Jan Buck is the research manager for KPMG executive research and the seminar also heard from two AGSM alumni – Lynn Wood, who counts board positions at the Foreign Investment Review Board and HSBC Bank Australia among her many roles, and Rob Allan, the chief executive of listed acquisition company Allomak who has wide experience on small public and private company boards.

Jan Buck acknowledges there is a new model for board membership developing in Australia that is putting younger people into non-executive positions.

“In the old model you used to work until 65 and then retire, and the statutory retirement age was 72 so you had seven years of boards and the pace of change was pleasant enough,” she says.

“Now the pace of change is going through the roof and people want to come onto boards at 50 or so, but they have to keep themselves relevant, because you are no longer in a position to be learning what is going on out there in the business world in a senior management role.”

Doing an MBA is very helpful in terms of understanding business from a strategic perspective.

One theme that was common to all three speakers was the importance of networks in gaining board opportunities.

Jan Buck says that in her role at KPMG, around 20 per cent of her work is finding people for board positions. The vast majority, she says are recruited through networks.

“As a headhunter, I’m telling people what they need to think about in terms of getting themselves noticed,” she says.

“What boards are looking for boils down to a mix of skills, and those skills can be financial, legal, marketing or management based on the nature of your organisation.

“But other boards are definitely looking for networks and the contacts you can bring to that organisation.”

Her advice to people who aspire to board positions is to “find a mentor, raise your profile and your skill area by speaking at conferences, writing articles and being interviewed in the press.”

Lynn Wood says the way to a board position is “a mixture of networking and a proven track record.”

“Doing an MBA is also very helpful in terms of understanding business from a strategic perspective,” she says.

Wood says she was not surprised by the high level of interest in the seminar, and says non-executive board positions are increasingly sought after as both men and women seek portfolio careers to achieve better work/life balance.

“The more flexible lifestyle attracts people,” she says.

“A portfolio career, including board positions, offers flexibility and variety, with the added attraction of being able to contribute at the top level.”

She advises people who might be interested in board positions to “start younger, even in your thirties.”

“You can volunteer, when you are in executive life, for roles as a non-executive director in other organisations, which could include industry organisations, charities or government advisory boards.

"Start younger, even in your thirties." Lynn Wood advises people who might be interested in board positions.

Photo: Lynn Wood

“Some time spent running your own company is also very good experience as a springboard into your first paid non-executive board position.”

“It is not unusual these days to be a top executive one day, working long hours, and the company changes so you no longer have a job through no fault of your own. At this stage it is usually too late to think about non-executive directorships,” she says.

“But if you have been building a portfolio career along the way then it is an alternative to full-time employment.”

The way to a board position is “a mixture of networking and a proven track record.”

Rob Allan has had wide experience as a director on smaller public and private company boards, often as an investor, and says that the most important thing for aspiring board members is “developing a track record in a particular field.”

“Around 99 per cent of where it is going to come from is word of mouth, so building networks is very important but it is also about letting your networks know that you are interested in board roles,” he says.

“Often you ask people how they are going and they say ‘oh I’m flat out, totally busy or whatever’ so you might think you shouldn’t ask that person to fill a board vacancy.

“So letting people know that this is an area of interest for you is important, and ultimately that is how word of mouth gets around.”

Like Lynn Wood, Allan agrees that an MBA can be an excellent asset for board membership.

“My MBA has definitely helped,” he says.

“The MBA is a broad-based business degree that touches on a number of disciplines right across the business and as a director, being able to draw on a little bit of knowledge in other fields you may not have actually focused on from a functional perspective gives you a big picture which is a critical thing.”