Moving into a role as a non-executive director (NED) can be an exciting path for those looking to sit on the board of directors and provide strategic advice for multiple companies.

The core responsibilities of this position are to provide objective perspectives on company strategies, governance oversight, risk management and performance, without being involved in the day-to-day management.

It’s a career path that suits those with substantial experience and achievements in their field, looking to use their knowledge and skills in a governance and advisory capacity.

Your path to a portfolio NED role

In contemplating this career move, here are some essential aspects to consider:

Senior leadership experience: Moving into a portfolio NED role requires a substantial senior leadership background. This experience equips you with the strategic vision, governance understanding and operational skills essential for fulfilling the expectations of NED positions.

Develop a broad skill set: Companies seek NEDs who bring a wide range of skills and perspectives. You’ll be more attractive as a candidate if you have expertise in finance, governance, digital transformation, sustainability or other key areas.

Establish a strong network: Build a solid network by connecting with current NEDs, participating in industry events, and joining relevant associations to uncover new opportunities.

Transition readiness: Many professionals consider a NED career as a way to step back from their operational responsibilities. This is an excellent role for those eyeing semi-retirement or wanting to pursue a different kind of work-life balance.

Financial stability: Given that NED roles may not initially offer the same level of income as executive positions, it’s wise to make the transition when you are financially stable enough to handle potential variability in income.

Commitment to continuous learning: The role of a NED involves continuous learning about new industries, regulations and challenges. Be prepared to invest time and resources into your professional development.

Governance knowledge: An understanding of corporate governance, risk management and compliance issues is critical for NEDs. Consider undertaking relevant training or qualifications if you’re not already well-versed in these areas.

Legal and ethical considerations: NEDs have the same legal responsibilities as other directors, so it’s important to be fully aware of these obligations and comfortable with them.

Time management skills: Stepping into a portfolio NED role often means juggling responsibilities across multiple boards. This demands exceptional time management skills to contribute effectively, without spreading yourself too thin.

Feedback and self-assessment: In your portfolio NED role, staying open to feedback and consistently evaluating your performance is vital to success. Insights from peers, board members, and mentors can highlight strengths and areas for growth. By frequently reflecting on your impact and approach to challenges, you’ll foster personal and professional development, maintaining your effectiveness and influence as a NED.

First steps

Start small and scale up: Begin by seeking NED positions in smaller organisations, potentially in the not-for-profit sector, to build your portfolio and gain experience before targeting larger corporations.

Evaluate your motivations: Ensure your move to a portfolio NED career aligns with your professional goals, personal values and desired lifestyle. This career offers opportunities for impact and learning, but comes with its own set of challenges and responsibilities.

Transitioning into a portfolio NED is a career choice rich with opportunities for impact and personal growth. As you consider this new role, remember that it’s not just about what you bring to the table but also about aligning this new phase with your broader life goals and values.

Whether you’re drawn to the role of non-executive director for its strategic influence, the chance to mentor and guide, or the flexibility it offers, success lies in preparation, networking and a deep commitment to continuous learning.

Further resources

The non-executive director role, CIPD
How to become a non-executive director, Institute of Directors
Stepping up: A guide to getting your first non-executive director role, Odgers Berndtson
First time guide for non-executive directors, Sam Allen Associates
Becoming a non-executive director, Spencer Stuart

Visit Board Agenda’s Corporate & Advisory Services directory for details of non-executive director executive search and selection companies.