Directors must be continuous learners. If you don’t do so, you’ll be out!

The pace and extent of change, together with an increasingly complex array of new and developing issues coupled with inherent uncertainty in the global environment, requires directors to be increasingly agile, innovative and value based.

This was the view of Peter Gleason, Chief Executive Officer of the US National Association of Corporate Directors (NACD) in the final IoD 2024 Leadership Conference session. In his ‘fireside chat’ with IoD Chief Executive Kirsten (KP) Patterson CMInstD, he reflected on how much governance, and the expectations of directors, has evolved. In his words, “everything’s changed”.

The expectations and pressures on directors and boards continue to grow. Increased scrutiny and requirements of regulators, stakeholders, shareholders, investors, staff, media and public expectations, has brought a strong focus on the boards’ ability to lead their organisations to create long-term value.

The changing role of directors amidst increasing expectations 

In the United States, directorship has evolved in the last few decades from being a largely perfunctory, honorary role that recognised your skills and experience at the end of your career, to one requiring a high standard of professionalism.

Along with the greater expectations, a higher level of skill and commitment is now required from directors. As Gleason emphasised, directors can’t afford to stay still with so much change going on. Directors must stay current and embrace a new approach to the role of being a continuous learner. “If you don’t stay current, you’ll be out,” he said. 

Accompanying the recognition that greater skills and commitment to continuous learning is required of directors today, has been worldwide recognition of the importance of accreditation standards for directors. These standards both recognise and confirm directors’ commitment to excellence in the boardroom, a desire to stay current, and to being more effective in their roles.

NACD director accreditation standards 

In the US, the need for enhanced director governance skills in a fast-changing environment has resulted in the development and adoption of the NACD’s director accreditation standards.  These have been implemented after earlier opposition from leading directors. Introduced in 2020, the NACD’s Directorship Certification programme provides director education and has an ongoing education requirement. It was designed to prepare directors for an ever-changing array of boardroom challenges, and to enable less experienced directors to improve their governance leadership capabilities.  

Based on a professional examination and continuing education, the certification confirms that directors possess the knowledge, expertise, and skills needed to discharge their fiduciary responsibilities as board members.

The NACD certification programme provides rigorous governance content, comprehensive preparation, and a credentialing exam to ensure those who hold the credential possess the core competencies required of an effective board professional. Earning the ‘NACD.DC’ designation demonstrates commitment to governance leadership and personal development, as well as commitment to leading oversight of organizations today and in the future.

This accreditation standard reflects the recognition internationally of the need to improve the standard of individual directors' skills and capabilities, and to acknowledge those who have made the commitment to improve.

Canadian accreditation standard

There is similar director certification in Canada.  The ‘ICD.D’ designation is granted by the Canadian Institute of Corporate Directors (the ‘ICD’) after completion of a mandatory Directors Education Program and an examination process conducted by seasoned directors.

The ICD notes the ICD.D designation -

“helps directors be better at what they do in the current, evolving business and governance landscape, and ultimately, create better boards and better business.  The designation also represents a lifelong commitment to achieving the highest standard of directorship and excellence in the boardroom, a desire to stay current, and to be a more effective director.”

The ICD states that “with an ICD.D, you are recognized as a director who can have more informed, focused and effective discussions. When used in board biographies or proxy circulars, it demonstrates to stakeholders the best-in-class governance and leadership capacity on your board(s).”

New Zealand – IoD Chartered Membership designation

The IoD NZ has had its own director certification standards in place since 2014, much earlier than its US and Canadian counterparts.  The New Zealand IoD’s  Chartered Member Assessment (CMA) is a robust assessment process - achieving the Chartered Member designation is a strong demonstration of commitment to developing the skills and knowledge needed to be an effective director. Chartered Members of the IoD make an annual declaration of good character, commit to continuing professional development and to upholding the principles of the IoD Charter. 

More recently, IoD NZ has created the Climate Change Governance Essentials (CCGE) course to support best-practice climate change governance in Aotearoa New Zealand. This course is designed to provide a comprehensive overview of the responsibilities and opportunities associated with climate change governance at the board level. Participants learn how to implement sustainable practices, mitigate risks, seize opportunities, and be better equipped to make climate a priority at the board table.

As a Climate Governance Initiative Approved Course, Climate Change Governance Essentials has undergone a robust review process to ensure its contents are highly relevant to directors of any experience level, or senior executives interested in addressing climate change at a governance level.

In summary

The worldwide recognition of the need for director accreditation standards, confirms the importance of directors committing to continuous learning to achieve excellence in the boardroom. Attainment of the various international accreditation standards developed confirms an individual’s commitment to becoming a more skilful, committed and effective director, for the benefit of the organisations they lead.  

 

Want to hear more and get insights like these?  Registrations are now open for the IoD 2025 Annual Leadership Conference 11 – 12 September 2025.  Register now