1. DAVID SCHWARZ Managing Director BOARD SEARCH BREAKFAST

2. Welcome 1. MD of Board Direction 2. An (ex) international headhunter 3. Australian Institute of Company Directors. 4. Author: ‘Board Appointments: A practical guide’ 5. A Regular NED speaker. 6. A ‘CV expert’. 7. A NfP Non Executive Director.

3. Today

4. 1. The benefits of sitting on a board. 2. What Chairs’ look for in new board members. 3. How people get appointed. 4. What you need to do to be appointed. 5. How long it will take. 6. How much you might get paid.

5. Why Would Anyone Want To Be a NED?

6. Risk Much too high – financial & reputation Hourly rate is dreadful Not the decision maker You are already busy Did I mention the risk?

7. Reward Understand how your own board works Evidence ‘strategic’ experience Develop new personal connections Develop new professional connections Business & Personal opportunities Demonstrate you passion for a cause or to ‘give back’ Fall back & preparation for post executive life

8. Three Types of Boards

9. Government Boards & Committees (401) Agriculture; Media/Arts; Communication; Defence; Education; Employment; Environment; Finance; Foreign Affairs & Trade: Health; Industry; Infrastructure & Development; Social Services; Treasury; Veteran’s Affairs www.ausgovboards.gov.au

10. Commercial Organisations Non Executive Boards - Traditional Family Boards – Can be challenging Advisory Boards – Have a specific purpose Investment/Equity Boards – An investment Start ups – Hands on

11. Not for Profit boards Not necessarily what you think they are. International – Greenpeace, Amnesty International National – Heart Foundation, Cancer Council, Super Funds State – Peak Bodies, Arts & Environmental Trusts, Health & Sports, Community Banks Community – Schools, Clubs, Foundations, Development Organisations Industries include: Finance, Industry, Sport, Community, Health, Housing, Education, Environment… and more

12. ‘Significant people’ on NfP boards. Great Barrier Reef Foundation Sydney Theatre Co. Financial Markets Foundation for Children Shakespear Co. Heart & Research Institute Victorian Opera Company Red Cross Hong Kong Australian War Memorial Foundation for Very Special Kids Sir Roland Wilson Foundation National Museum Australian Museum Lizard Island Reef Research Foundation The Australian Ballet Mission Australia Melbourne Fashion Festival Alannah and Madeline Foundation Carey Baptist Grammar School Diabetes Institute Sydney Symphony Orchestra. St Vincent’s Institute of Medical Research

13. Which Board For You?

14. Questions you should ask yourself How much/do you need to get paid? Do you have past board experience? What is your skill set? Where do you live? How valuable are your contacts & to whom? What your timings are? What your passions are? What time you have? How much preparation are you willing to do?

15. Choose carefully… Be passionate NfP’s are not a easy ride to a ‘better’ board 96% of NfP NEDs are unpaid

16. The 5 Things a Chair Wants

17. What do Chair’s look for? Essential criteria often focus on: 1. Past governance/board experience 2. An executive skillset 3. Relevant networks 4. Demonstrable passion 5. Cultural fit

18. What else do boards look for? Desirable board criteria often include: (Relevant) Industry experience Diversity – not just gender Governance Training

19. Training, is it worth it? 75% of the people I speak to think that it is. The Australian Institute of Company Directors, Company Directors Course The Governance Institute – Grad Dip of Applied Corporate Governance (Institute of Company Secretaries) 9/04/14www.boarddirection.com.au

20. How Are Board Members Appointed?

21. The Chair is Key

22. Boards are a fragile ecosystem Chairs are nervous about new appointments New appointments change the dynamics Chairs need to a level of comfort before appointing Which is why appointments via a personal connection are so common and being ‘known’ is invaluable.

23. How are boards members appointed? 65% of people are appointed to a board through their personal connections (1) 15% are appointed directly (2) 10% via recruiters (3) 10% via advertisements (4)

24. Essentially…when connecting with others You must dare them* not to appoint you.

25. 1. Personal Connections

26. Personal Connections: ‘Old School Ties’ “Multiple directorships abound, with 105 people accounting for a third of all ASX 100 board seats,” Still, not as bad as everyone thinks Can be valuable – though not as much as you might think Get into one

27. Personal Connections: Strong & Weak Ties Strong Ties Friendships & Relationships Weak Ties Contacts & Connectors

28. Second: Fundamental Attribution Error we "instinctively want to explain the world around us in terms of people's essential attributes.” You are going to get pegged so…

29. 2. Direct Approach

30. The direct approach <20% are appointed this way Research – do it thoroughly. Be clear – know your USP/board profile. Use your networks – become a warm candidate? Be helpful – make introductions, find out what their challenges are. Provide a solution.

31. 3. Executive Search Firms

32. Executive search firms (headhunters) At best, they place 10% of all board appointments. Know their business & how it works. Avoid them if you can. When you can’t… impress them

33. 4. NED Advertisements

34. Understand the realities Understand the statistics & realities then… Be memorable and ‘dare them not to see you’ Clarify the process and timings Give them permission to say ‘no’

35. Application documents Unless directed otherwise you should produce/write three documents (in this order) 1. An application document (addressing the key criteria) 2. A ‘board ready’ cover letter 3. A ‘board ready’ CV

37. Does a ‘board ready' CV really work? With pleasure I am informing you that as a result, I believe, of using your advice and the Board CV style and content you worked on with me, I have now received an appointment as a Non Executive director to an organisation with a bright future and potential for significant growth … Why do I know the Board CV was a catalyst? Because I asked what attracted their attention to me, to which they responded “the style, format and clearly articulated content of the CV” (Rodney Turner)

38. Your Board Profile Address the five primary reasons why people are appointed. Done it – you have Skills – you have them Connected & Knowledgeable – through research Cultural fit – a fragile ecosystem Be passionate Remember FAE – they only know what you tell them Include the detail – names, organisations, evidence is important

39. You Probably Have Two Questions

40. 1. How long will it take to be appointed? Depends upon: Your aspirations How much effort you are willing to put in. How relevant your skills are / experience you have in your field It is a journey… but an enjoyable & profitable one.

41. 2. How much could I be paid?

42. How much could I be paid? continued

44. Resources

45. Advertising Websites www.boardirection.com.au www.probono.com.au www.ourcommunity.com.au Organisations/Training governanceinstitute.com.au companydirectors.com.au effectivegovernance.com.au Executive Search Firms Watermark (NSW) Boomerang (NSW) Third Sector People (NSW) Directors Australia (QLD) Talent 2 (NAT) Slade Partners (Vic) Dakin Mayers (Vic)

46. Finally Finding the ‘right’ board role is not a simple or quick process, nor should it be. The application process for a directorship can often be more thorough than an executive application. In both cases however, thorough research and developing personal connections are absolutely key. Doing both will separate you from other applicants and … dare them* not to see you

47. Contact Details David Schwarz E: david@boarddirection.com.auM: 0479 196 058 Web: www.boarddirection.com.au www.boarddirection.com.au