In 2018, I was appointed as non-executive director (NED) at a multi-million dollar organisation. I was excited, nervous, and utterly out of my depth. Having never served on a board, I had no idea what was expected of me, how I could contribute, or whether I was having an impact. For a year I did my best, I thought I was doing OK, but I knew there was so much more I could give. I resolved to educate myself. That led me to my second problem, where do I start? There are many options for director education, some more credible than others. After much research, I settled on what appeared to be the gold standard in the U.K. for professionals aspiring to take on executive, or non-executive director roles, the Certificate in Company Direction from the Institute of Directors (IoD).

What is the certificate in company direction?

This highly regarded qualification is designed to elevate your understanding of corporate governance, strategic leadership, financial stewardship, ethical decision-making, and providing a robust foundation for success in the boardroom. It is the first of three stages in the Chartered Director Programme from the IoD. The idea that I could build on it in the future appealed to me. The certificate consists of four ‘awards’, each covered in a two-day live-delivered training course followed by a rigorous exam.

The awards are, The role of the Director and the Board, Finance for Non-Finance Directors, Strategy for Directors, Leadership for Directors. It seemed like a great fit for me. I signed up to the accelerated programme which covers the material in one intense week of in-person learning. This was back in 2020, so my well-laid plans were somewhat disrupted by a global pandemic. My accelerated class was cancelled, but I was able to sign up to the four classes as stand-alone events, each taught remotely over two days with an exam a few days later. Here’s what we covered.

The Role of the Director and the Board

As my first of the four courses, this was a great introduction to all things board- and director-related. It gave me a good foundation of the key roles, duties, and legal responsibilities of a director. I learnt about the board’s role in corporate governance, and the differences between ownership, direction, and management. After this award alone, I was a better director at my best meeting.

Finance for Non-Finance Directors

Next up in the Certificate in Company Direction was the topic about which I knew the least. I am not a finance person so was expecting to struggle with this topic. It was quite new to me, but I was able to follow along comfortably and the trainer was excellent at making things understandable. We covered the board’s role in finance, including understanding the main financial statements and financial ratios. After attending this class, I was definitely more confident discussing the financial reports at board meetings.

Strategy for Directors

The third two-day course focused on strategy. This is definitely more in my comfort zone so I felt like I was on my territory here. The course covers various strategy tools that many will have learnt on MBAs for generating, and evaluating strategic options for long-term organisational success. It was a good refresher of the various tools available. The case studies added great depth to the theory. I would have liked to see a little more on how the board collaborates with management to create the strategy, but ultimately, this was also a useful course.

Leadership for Directors

Finally, I moved onto the leadership class. I was interested to see how leadership happens at both board and management levels. The culture section was also very useful, in particular how boards set the culture and managers can implement it. I tend to find this a think on which too many boards tend not to focus.

What was the value of the certificate in company direction?

Having passed all four exams, and achieved my IoD Certificate in Company Direction, I was definitely happy with my decision to take this programme. For me, it offers several key benefits:

1) Enhanced Knowledge of Corporate Governance

Understanding the principles of good governance is crucial for any director. The certificate equipped me with a solid grasp of governance frameworks, risk management, and compliance. It ensured that I could navigate regulatory environments and uphold the highest standards of accountability.

2) Strategic Thinking and Leadership

Leadership at the board level requires a clear vision and strategic thinking. The certificate helped to hone my ability to assess market opportunities, develop sustainable business strategies, and foster innovation. This strategic mindset has been invaluable in shaping the long-term success of the organisations with which I work.

3) Financial Acumen

Financial literacy is a cornerstone of effective boardroom leadership. The certificate covers financial performance and decision-making, enabling learners to interpret the key financial statements, assess business risks, and ensure the company’s financial health is maintained. As someone from a technology and transformation background, this addressed a key gap in my knowledge.

4) Ethical and Responsible Decision-Making

Ethical leadership is more important than ever in today’s business landscape, and was something into which I had no dug too deeply to this point. The certificate emphasised responsible decision-making, ensuring directors are equipped to handle ethical dilemmas and contribute to a positive corporate culture.

5) Peer Network and Professional Growth

By participating in the program, I became part of the IoD’s extensive network of professionals. This provides valuable opportunities for networking, collaboration, and continuous learning. Engaging with like-minded individuals help to build strong relationships that foster professional growth and open doors to new opportunities. I have certainly met some great people with whom I have stayed in touch.

In conclusion

I found the Certificate in Company Direction from the Institute of Directors to be a comprehensive and prestigious qualification that offered immense value to me in my growth as a non-executive director. By enhancing my governance knowledge, strategic thinking, financial acumen, and ethical leadership, I feel I have become a more valuable asset to the boards on which I serve. Investing in this program is not only a testament to your commitment to professional growth but also a strategic move towards becoming a more effective, responsible, and impactful executive, or non-executive director.

It is now three years since I passed my final exam and received my certificate. I have now taken on my second NED role and feel far more confident in my contributions. In November of this year (2024) I will undertake the next step in my NED development and my Chartered Director Programme journey, the Diploma in Company Direction. This will consist of a three-day training course on board dynamics in London and a written exam. I look forward to continuing my development and take the next step on the Chartered Director Programme.

Find out more about the Certificate in Company Direction here.

Check back for my review of that in the coming months.