Do I need the AICD course to be a NED?
By Clare Malcolm
May 26th 2021
Do I need the AICD course to be a NED?
The decision to pursue a Non-Executive Director (NED) role is often a natural progression for talented senior leaders with significant strategic, operational and business skills that lend themselves effectively to the process and delivery of good governance.
Directors should be capable of seeing company and business issues with a broad perspective and are often appointed because of their independence of the organisation, however they should understand that they have the same legal duties, responsibilities and potential liabilities as their executive counterparts.
This is critical for a potential NED to consider before accepting any appointment and they should ensure they undertake thorough due diligence which is essential to provide confidence, certainty and trust in the commitment they are making and obligations they are taking on.
This requires a thorough understanding of the landscape that the organisation is operating in and a deep dive into its functions, financials and viability is an effective operation before committing.
Organisations often seek out NEDs who are solution driven problem solvers to help them overcome challenges and complexities that impact their potential and growth towards success.
Professionals from across a huge range of industries possess the skill set to drive change, tackle problems and develop solutions, given these are critical skills of anyone in a senior leadership role.
There is however a process of transition that needs to take place to ensure that a new NED understands they are not an operational operative any longer and are not expected to have that same level of detail about day-to-day functions that would have been critical to their success in their previous leadership roles.
Adopting this new mindset and changing thinking and approaches requires a significant adjustment to provide for the adaptation required to make the shift from delving into those operational drivers as business leadership so often demands, to being a contributor to oversight and governance instead.
Given that Governance, finance, strategy and risk are all essential elements to deliver as a NED and any one of these or more may well be your field of expertise and knowledge would you benefit from additional training that helps guide your mindset towards that of a governance professional rather than being operationally focussed.
The question then becomes: can an Australian Institute of Company Directors (AICD) course support a skilled professional to make the leap from an operational mindset to a strategic governance approach that adds critical value to an organisation, enabling them to bring their skills and knowledge but applying these in an entirely new way?
The Governance for Directors course is but one of the many options AICD offers and with its focus on outlining ‘the key functions of a board, the role of a director, and the internal and external relationships of the board participants, develop a deeper understanding of director performance best practice as well as compliance requirements’, there would be reasonable merit in delving into and growing a potential NED’s understanding of these aspects of the roles and obligations they are embarking upon.
Aspiring NEDs are often high performing, significantly skilled professionals that offer a wealth of wisdom and insight into achieving success given they likely have a strong history of delivering results for their employers.
It would be fair to say that these individuals would likely have a respect and appreciation for professional development and place a high value upon it and potentially possess their own record of engaging in opportunities to develop and grow their skill set to add depth to what they offer as an individual.
Given this, it could be anticipated that a potential NED would want to be across the details of their obligations, functions and responsibilities to ensure they are providing an exceptional level of quality service within the role.
Embarking on a journey of professional development be it through AICD or any of the other alternative resources that exist to help develop a NED as an effective and constructive contributor would seem to be a wise decision to take to support that critical transition in thinking and mind-set that is so essential to effectively shifting from the operational to the strategic.
Aside from the AICD offerings we highly recommend Helga Svendsen Take on Board podcast available here.
Helga identifies that “Being on a Board can be an interesting, valuable and exciting experience. Yet it can also be lonely, challenging and hard.”
The weekly podcast offers tips, tricks and advice to help you navigate your way on to your first or next board and to build your governance wisdom. “It’s like having your own trusted advisors in your pocket.”
Training and skill development should form part of the ongoing commitment of a NED once appointed to a board role to ensure they keep up to date with developments in the company and the relevant business sector.
AICD has a plethora of offerings to support ongoing development of NEDs and their reputation in the delivery of high-quality training and skill growth should be embraced to deepen the abilities and experiences to ensure that successful, influential, effective NEDs are filling our boardrooms across the country.
Be brave and venture into this new world with an open mind and fulfil your potential in ways you may never have even considered. Executive Agents are here to help you scope your options, explore your future and realise the promising professional horizons that await you. Don’t hesitate to get in touch with us for a free 15-minute consultation today.
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