Board members’ fundamental duties haven’t altered over the years, but the environments they work with are perpetually changing. To effectively contribute to the growth and success of the businesses they steward, directors must adapt to these changes.
The importance of a director’s role in any organisation cannot be overstated, as emphasised by Caroline Spillane CDir, Chief Executive Officer of the Institute of Directors Ireland (IoD Ireland). She points out that rapid changes in various areas, especially in AI, GenAI, cybersecurity, sustainability, and geopolitics, significantly impact business functions and results. Directors need to comprehend these changes and the potential disruptions they might cause, such as in the supply chain.
Hence, to succeed in their roles, Spillane notes that many organisations are encouraging their board directors to regularly upgrade their skills. Not only should they excel in core areas like governance, finance, and strategy, but they must also foster leadership skills like behavioural risk management and team cooperation.
One of the main hurdles for many directors is migrating from an executive management position to a board member role. Spillane underscores that a great executive doesn’t automatically translate into a proficient board member. The skills, knowledge, lens for oversight, and level of awareness required for board members are uniquely different. Therefore, continuous professional development is crucial for a smooth transition from executive to director.
Moreover, for executives accustomed to hands-on roles, being a director requires a pivot in mindset from executing to overseeing. Spillane emphasises the importance of this change, sharing that the IoD Ireland supports members in making it. An effective director should possess the fundamental competencies to critically evaluate complex executive information while simultaneously offering support, guidance, and oversight concerning strategy, governance and compliance. Spillane adds that for the past three decades, they have been aiding directors in building these necessary skills for optimal performance.
The Institute of Directors (IoD) in Ireland offers a variety of educational initiatives, including workshops and programmes that navigate essential subjects like supply chain, procurement, board reporting and ESG to recruiting for the Chartered Director Programme. These are all encapsulated within the IoD Ireland’s continuous professional development (CPD) Framework for Directors, as explained by Spillane.
The framework serves as a guide for the diverse skills demanded by directors and leaders and is divided into four distinct aspects. The four facets entail governance, technical proficiency and skills, creative strategic planning, and the mental nuances of the boardroom.
The aspect of governance involves understanding legal and regulatory landscapes, the roles, obligations of directors, and knowledge pertaining to company law. “A comprehensive understanding of the intricate responsibilities, audit and risk supervision and trustee concepts are necessary for directors,” Spillane elaborates.
The technical skills component is inclusive of topics like business finances, cybersecurity, digital technologies, the implications of AI and ESG. “This area uncovers vital skills and knowledge to guide boards fruitfully into the future. It enhances their decisions for better compliance, risk control, corporate performance and management.”
When addressing creative strategic planning, it focuses on the innovative thinking and methodologies needed to formulate strategies to achieve both short- and long-term organisational goals. It also encompasses the expertise needed to transform instinct into reasoned strategic judgements.
The fourth angle is the crucial psychology of the boardroom. “This facet equips directors with a better understanding of the emotional currents, behavioural factors and subconscious responses that impact the productivity of board meetings. It aids directors to contribute confidently and positively to boardroom dynamics and to be efficient board members.”
The CPD Framework amalgamates IoD’s expertise and research on corporate governance best practices with valuable input from their members, boards and leading business executives.
The IoD Ireland’s newly revealed 2025 Prospectus delineates all of its programmes and workshops, dividing them into these four central aspects. This enables directors and executives to conveniently identify the best option for them to boost their professional skills.
Spillane remarks, “Numerous directors will already excel in several of these aspects. This prospectus is designed to facilitate individuals in identifying their existing skills, spotting potential shortfalls or planning to extend current competencies and determine what they might need to modify.”
The advantages extend well beyond practical skills enhancement. “Our educational and learning programmes extensively rely on live and interactive sessions to bolster interpersonal learning,” she articulates. “This approach is immensely important as it facilitates learning from others and establishing connections. Participants gain a deep understanding of the operations of different organisations, the functionality of various business models, and they benefit from the shared knowledge of their peers. Furthermore, all our faculty members have a dual role of being independent non-executive directors and specific field experts, enabling them to fuse theoretical knowledge with practical implementation.”
A large number of board members opt for the status of Chartered Director. “Our exclusive Chartered Director Programme stands as the epitome of professional director development,” says Spillane. “This internationally acknowledged professional qualification prepares directors to efficiently undertake daily obligations as well as unpredictable situations. However, it does not symbolise the halt of learning. Directors affirm the significance of continuous growth and the necessity to stay abreast with contemporary issues to make a valuable contribution to the board. Their role is to secure the sustainable existence of the organisation in the future, and every director aspires to augment value in this aspect.
“Our IoD workshops and concise programmes cater to all directors, including those who are on the path of professional accreditation as a Chartered Director and those who haven’t enrolled in the Chartered Director Programme.
“Board members are privileged to leverage our myriad of short IoD programmes and workshops throughout the year, along with the opportunity to join our complimentary events and other resources we furnish.”
Guidelines on educational offerings are perpetually accessible. “We are just a call away and are more than willing to discuss our programmes and direct people on their development pathways,” adds Spillane. “All our educational and learning services are eligible for CPD hours and some can be funded by Skillnet Ireland.”
She concludes with an emphasis on the high corporate governance standards prevalent in Ireland today. “Over the years, we have witnessed an evident enhancement as increasing numbers of boards and individual directors have embarked on continuous professional development programmes. The Institute of Directors Ireland, being a non-profit entity, aims to facilitate training and development for directors. Although governance standards are currently high, there’s a pressing need to maintain this standard and push for continual improvement in this ever-evolving world. Our mission aligns with this very objective.”