Training is vital for today's directors

Jan 22 2004 By Peter Allan, The Journal

Peter Allan discusses the importance of development and training at director level

Being a director is fundamentally a different proposition to being a manager. While many organisations have strong management programmes and heavily invest in developing the leaders of tomorrow, many fail to invest sufficient time and effort in developing those who have responsibility for growing the company now.

Directors must understand a broader range of issues than previously. In addition, there is an increasing focus on the professionalism of directors, both individually and collectively as a board, from the government, media and stakeholders.

It is important to understand the drivers for board level development, as these can determine the type of programme or course requested.

The IoD Sign of the Times Survey (1998) highlighted that 58pc of directors prefer short/open courses rather than spending too much time away from the office. Day courses or courses that can be spread over a number of dates may prove more suitable.

As it has evolved, the Combined Code has focused directors' minds on the need to stay up-to-date with legal requirements, best practice in corporate governance and current business thinking.

Those arranging director and board level development need to be aware, not just of directors' duties, responsibilities and liabilities, but also how directors need to think and act as a member of the board. Policies towards social responsibility and sustainability also now need to be in place.

Professional development interventions for directors can be explored through a number of initiatives. Courses, workshops, coaching and mentoring are just a few of the choices that provide very different results.

Longer-term programmes, including formal qualifications through accredited programmes such as the IoD's company direction programme, provide in-depth knowledge and understanding that directors need, whereas short courses may be more functional, teaching practical techniques.

Having identified the need for some type of training, it is good to assess whether other directors could undertake the same training. If the issue is an individual one e.g. time management skills or strategic direction, individual coaching or mentoring may be more suitable.

You also need to consider the business case for development. Does the proposed development activity fit in with the business strategy?

How will you know if it's successful? Every business should put procedures in place to monitor any skills gap within the board, which might affect short or long-term performance. Assessing the personal development gains of the individual along with the impact on the business is crucial.

The effects of training can not only improve the skill of the director and the bottom line of a business, but can cascade down through the organisation, so that others can then respond and learn the new methods and techniques.

* Peter Allan is North-East Region chairman of the Institute of Directors. For further information about IoD director development programmes, please visit www.iod.com