How many of you have tried to become Independent Directors (IDs) and failed?
How many of you discussed this with friends or colleagues and were discouraged? How many of them told you that this was too big a dream, and hence not achievable?
Some of you may also say, I wrote the exam and was added to the IICA databank but never got any work. But if I ask what you did to build your personal brand or network, or market your qualification, or if I simply run a Google search, I can guarantee that I will find out why you are yet to be picked as an Independent Director.
The truth is, most people do not even try!
Why? Why is there so much negativity despite this being such a stellar opportunity?
Here are a few reasons
Becoming an ID is the way out of the middle management trap – but what are the problems that people face on this journey?
Some of the most common problems are:
- Not cracking the IICA’s Online Self-Assessment Proficiency Test – over 50 percent of the roughly 21,500 professionals registered in the databank are yet to write the test! Taking time out to prepare can be challenging for busy professionals, while failure to clear the test can lead to embarrassment, though it is possible to re-write the exam. If you are already appointed as an ID and then fail the exam, the company has to report it in its annual filings, which become accessible to the general public. It is a big issue, which is why companies do not appoint IDs unless they first clear the test.
- Even those who clear the exam are unable to get appointments because they do not have a strong network with promoters, or headhunters – ID positions are not listed on job sites like Naukri or LinkedIn – if you do not have existing, relevant relationships, you will not be aware of opportunities.
- Not building a strong personal brand – Building a personal brand is not difficult. It can be achieved in 6 months. But most people do not know how or what to do. Nobody teaches these things in college or at work. Those who learn through trial and error do not tell others how to do it in order to maintain the mystique and aura around themselves, even though the methods are quite simple.
- Not preparing for interviews – Most of us try to prepare for interviews even for entry-level jobs. Of course, as we gain more experience, we figure out what is expected of us. However, being an ID is a different ball game altogether, where professional interview preparation guidance can make a huge difference. Where do you get that guidance and coaching? A whole lot of people fail at that level.
- Not knowing practical corporate governance work – The IICA exam tests you on very basic components of corporate governance, primarily derived from the Act and Regulations. Of course, you need to prepare yourself even for that. Do you really think real-life scenarios for India’s biggest corporations will be that simple?
Obviously not.
That is why it is important to know about the kind of role that you can play as an independent director, in simulation-based scenarios.
Every action and every question of yours as an ID can have far-reaching implications for the business, and the industry. Not taking action will have far-reaching implications too. This is why it is super important to have some prior training in a simulated environment.