4 tips for accountants seeking board appointments

Becoming a board member is a process, not a journey. And the first step to joining a corporate board starts with aspiring directors pinpointing likely organisations to approach. 

“This is about understanding your board aspirations,” says Board Direction Australia & New Zealand CEO and founder, David Schwarz, who has helped countless clients find board roles.

When first getting started in a board career, it is a good idea to learn how appointments are made. There are four main ways to be appointed to a board: via an ad, a recruiter, a direct approach or through a strong or weak connection.

Gain strength through weak ties

A “weak” connection is someone the aspiring director sees rarely or infrequently — or someone they are yet to meet. 

“Weak ties make you powerful,” says Schwarz, whose data indicates only about 15 per cent of people are appointed through strong ties, while more than half of all board appointments happen via weak connections.

“People think it’s the John, Jim and Janes they know who sit on boards that they need to have relationships with,” he says. “This is because they are pretty sure they’ve read in the press that that’s how board appointments happen.” 

Often, close contacts are not the way to a board seat, because they know the individual too well or don’t associate them with boards, as they see them in another context — such as at the school gate, on the soccer field or in the office. 

“There’s a whole range of preconceived ideas these close ties have about the individual that makes them less valuable for getting a board seat,” Schwarz says.

Conversely, it is relatively easy to establish “curated” relationships with people who are less familiar.

“Weak ties only know what you tell them. If you get your target companies right, make your pitch compelling so it addresses the decision makers’ motivators rather than your own motivators,” Schwarz says. “You can make the most of these weak tie connections.”  

Networks still matter

To get a foot in the boardroom door, Karina Kwan, non-executive director of Export Finance Australia, HSBC Bank Australia and WAM Active, suggests identifying a list of non-executive directors to contact for coffees. 

“Networking with existing executives isn’t going to help. You have to network with existing non-executive directors. What you’re asking for is their advice and [that they] reach out to their network to make at least one more connection for you to have a conversation,” Kwan says.  

Aspiring directors need to start the process to secure a board seat more than two years before getting a role, because it can take time to become known in the market.

“Because you’re not well established yet, you’re a newbie and any board that takes you on is going to take on some risk. So, the first board role is usually through the people who know you,” Kwan adds.

Know your unique value proposition

Another board membership strategy is to consider what makes you the right fit to be on the board of a particular organisation — and communicate it to them.

“Know your unique value proposition [UVP] as a director, which is different to your UVP at an executive level. Your director UVP should focus on how you are positioned at an industry level in terms of your skills and experience,” Kwan says.

Opportunities for women and people from diverse backgrounds to secure board positions are improving, with women now making up 36 per cent of ASX 300 directors. 

It is worth remembering that listed companies and other organisations have diversity targets and quotas to reach. As such, some aspiring directors have a competitive advantage when going for roles that they should maximise, because competition for board seats is tough.

“I have yet to come across another non-executive director who is Asian and a woman who has been a bank treasurer and has also been a CFO and accountant in financial services. Look at how you present yourself to the world and compare yourself with everyone else who’s competing for the role,” Kwan recommends.

Diversity in Training founder and chair of CPA Australia’s West Australian (WA) gender and career progression committee, Jill Brazil, says professional networks are a platform for women to get noticed and gain skills. She notes that her networks in the WA local government sector built her confidence so that she felt comfortable putting her hand up for volunteer board roles. 

“My career in local government has opened the door to opportunities on boards, thanks to the strong ethics, governance and communication skills I acquired when working for the diverse communities we serve,” Brazil says.

Be across the new director requirements

Board composition and the core skills directors need have changed since the COVID-19 pandemic. This period prompted a significant exodus of established directors for boards, while new directors with different skill sets put their hands up for seats. 

“The roles, responsibilities and risks directors take on have increased. The teas, coffees and sandwiches that came along with some board appointments have changed. Businesses have become a lot more digital. 

“Accountants and audit and risk professionals are always going to be valuable on a board. But HR, transformation and change, digital, data and marketing experts are as well,” Schwartz says.

Boards have very specific, fast-moving risks to manage, and it pays to be across them to help secure a directorship. Risks like cybercrime and artificial intelligence, and environmental, social and governance responsibilities — especially sustainability and climate change and managing the relevant public disclosures around these — have to be top of mind. 

“Geopolitics has created a much more volatile and uncertain business environment. Organisations recognise the need to develop a framework for practising agility, which also includes how the board needs to operate,” Kwan says.

There are plenty of ways for accountants and other executives with the right approach to find board roles. The idea is to be strategic and willing to make connections far and wide.