NEDs offer an opportunity to influence strategy, enhance your professional reputation, and bring independent oversight to key organisations.
There are some crucial differences between NED roles in the public and private sectors, so it’s important to conduct thorough research to determine which path best suits you.
In this article, we’ll dive into these two distinctive paths and provide a framework to help you choose the right one for you. We’ll also share how our expertise at Awards Intelligence is unmatched in supporting aspiring NEDs to realise their potential.
What Is a Non‑Executive Director?
A non-executive director (NED) is a board member who offers independent oversight, governance, strategic insight and risk management.
NEDs typically:
- Provide objectivity and independent judgment: Maintaining objectivity is crucial in this role. NEDs should challenge perspectives and prevailing opinions and provide unbiased advice.
- Hold senior staff accountable: NEDs need to hold any managers to account, specifically regarding how the company is managed, how strategy and business plans are delivered and how the budget is spent.
- Monitor performance: This includes paying close attention to the performance of executive management, analysing their progress towards reaching the company’s objectives and strategy.
- Represent the work and views of the organisation: This could represent the work and beliefs of ministers, Parliament, key stakeholders or the wider public.
- Provide strategic direction and leadership: NEDs often partake in planning the organisation’s strategy, including agreeing on business plans that will deliver, as well as recruiting key staff.
Public vs. Private Sector Boards: Key Differences
NEDs are powerful for opening new doors to business opportunities. There is a wealth of options out there; finding the right one for you can feel overwhelming. Below, we discuss some key factors for you to consider when deciding between a private or public NED:
Public sector NEDs
In the UK, there are over 1,200 public bodies that need independent oversight in the form of a non-executive director. These organisations include large public bodies, which are managed by boards of directors, as well as small advisory committees. The committees can be broken down into experts, specialists and lay members.
Spanning many aspects of public life, public sector organisations include:
- Key regulatory bodies such as the Competition Commission, the Environment Agency, the Equalities and Human Rights Commission and the Health and Safety Executive
- Health authorities and NHS trusts
- National museums and galleries, including the British Museum, the Natural History Museum, the Tate and the National Gallery
- A number of specialist scientific and technical committees
- Expert advisory bodies such as the Low Pay Commission, the Committee on Standards in Public Life and the House of Lords Appointments Commission
Is a public sector NED right for you?
The private and public sectors differ across many facets, including policy, procedures and objectives, although many of the key skills and experiences are shared. In fact, according to the House of Commons’ Public Administration and Constitutional Affairs Committee, public sector NEDs will have experience outside of government, their expertise coming from the commercial private sector.
A public sector role will be ideal for you if you’d like to:
- Enhance your career progression and gain new skills
- Gain board experience. This can later be leveraged to expand your portfolio of NED roles
- Contribute to public service and support initiatives that directly impact local communities and national policy
Additionally, the UK Government is actively seeking NEDs from a diversity of backgrounds. Their ambition is that half of the new appointees should be women, with 14% representing people from ethnic minorities. If these values align with your own, a public sector position could be right for you.
Private sector NEDs
Beyond the public sector, there are plenty of opportunities within the private sector for prospective non-executive directors. The UK Corporate Governance Code has dictated that it is in the best interest of the organisation that the board is composed of a combination of executive and non-executive directors. This is so that no one individual dominates decision-making.
Is a private sector NED right for you?
The duties and key skills required of the private and public sectors are largely the same. As we’ve mentioned, objective oversight, monitoring performance and holding senior staff accountable are all crucial for success, regardless of the sector you’re operating in.
As the private sector is profit-driven, promoting the success of the company and prioritising the stakeholders’ interests is paramount. Conversely, for the public sector, their priority is the public, and, therefore, the objectives and strategic direction may differ.
How to Decide Where to Focus Your Ambitions
Are you struggling to choose between the two sectors? Consider the following points:
- Assess Your Background and Strengths: During your career, you might have had more experience in either the public or private sector. This will strengthen your offering as a non-executive director, as you will have a base understanding of the industry.
- Clarify Your Motivation: If you’re looking to give back to society or your local community, public sector roles may be better suited. Alternatively, if you’re looking for a fast-paced, potentially more dynamic role, a private corporate company could be ideal.
- Career Goals: The private and public sectors require a similar skillset, which can be transferred to different positions. Public governance bodies can be more limited regarding the diversity of roles, whereas private boards can offer a more diverse portfolio of roles and business networking opportunities.
Cross‑Sector Experience
As we’ve mentioned, cross-sector experience is incredibly common; it’s a natural career progression for many professionals.
This can help:
- Broaden your strategic perspective
- Strengthen your professional credibility
- Navigate a wider range of challenges and governance styles
How Awards Intelligence Can Accelerate Your NED Journey
At Awards Intelligence, we specialise in helping our clients craft compelling, high-impact applications that are positioned to highlight your strengths and your suitability for the role. With a 97% client satisfaction rate, we’re recognised as a leader in our field and give our clients the best chances of achieving success.
We offer a truly unique service, providing our clients with expert consultancy throughout the application process. Our dedicated team ensures your submission is focused, persuasive, polished, and ready to stand out in this rigorous process.
We do all of the heavy lifting; all you need to do is give us the details of the position you’ve been looking at. This comprehensive support can elevate your application, whether you’re targeting public governance boards or private sector opportunities.
Discover more with Awards Intelligence
Companies of all shapes and sizes are looking to attract non-executive directors, whose insight provides a powerful asset to both private and public organisations.
Choosing between the two all depends on your values, experience and motivations, which should all be reflected upon so that you can identify the best fit for you.
All you need is a compelling application to give you the best chance of acquiring the position. So, if you’re ready to take the next step, our dedicated team here at Awards Intelligence is here to help. Contact us today to explore your options and receive tailored guidance on how to position your skills and experience for an NED role.