Desigualdad Digital: uso y especialización de TIC

Status and prestige were referenced consistently by NEDs when they discussed their connections and their inherent value in gaining a NED appointment. Individuals started their careers in organisations that would be regarded as reputable brands and/or highly prestigious organisations. Working in these organisations conveyed a sense of status in society. In addition, all individuals had reached the top of their field in these organisations with titles such as: Managing Partner; Managing Director; Executive Vice President; or Government Minister. NEDs were cognisant of the status and prestige they had built and that of their connections. Individuals’ early career connections had matured over the course of their career and as a result enabled them to make further connections with greater prestige and status. It was these connections, built up over many years, that enabled them to gradually access the most prestigious networks of all - the networks of Chairmen. And it was these connections that ultimately paved their way to the boardroom.

Tami had built a successful career at a prestigious consulting firm, a FTSE 100 company and in the government. Yet when she discussed the factors that helped her gain her FTSE 100 NED, she focused on her consulting firm work experience. She was convinced that the level of prestige associated with the consultancy, the people connected with it and the fact that she worked there several years carried a lot of influence with the Chairman.

I think the fact that X (ESF) and Y (Chairman) were able to get quick references through people connected with Z (top consultancy firm). I had been at Z (top consultancy firm) for many years and everyone knows them and what they stand for. It has huge influence in the corporate world and that would have got me off the starting block. Well I know it did. (Tami)

Jami talked about his role as a CFO of a FTSE 100 company with an air of admiration.

I’ve been CFO of X (FTSE 100 company) now for 12 years. I’m an FD of a FTSE 100 company and you couldn’t get stronger criteria for sitting on a board. Being a CFO of a FTSE 100 company would have put me automatically on the map. I would have been on the radar of every

headhunter. Being CFO of a FTSE 100 company is pretty strong stuff.

(Jamie)

Further, he excitedly described the events and the people he connected with as a result of his status, people of significantly higher status than him.

I am FD of a FTSE 100 company, so I am well known to headhunters. To give you an example of my week this week. yesterday X (Global ESF) had organised a viewing of the Da Vinci exhibition – a champagne and canapés sort of thing - and I met a few people I know who were out and about. On Tuesday there was a meeting at Clarence House, hosted by Prince Alexander, it was on sustainability and organised by Y (top consultancy firm). It had many of the city eagles there and it was great to catch up with so many people. There were a lot of very powerful people there. (Jamie)

When discussing the referencing carried out on him, Jami again referred to the status of being a CFO of a FTSE 100 company and how his connections were able to impress ESFs and the Chairman.

I knew that X (Chairman of appointing company) would be doing the rounds. I knew people in the city that I knew he knew and I dropped them into conversations with him and the headhunters. I knew the names would resonate. It’s important that the names mean something to them. While being CFO at Y (FTSE 100 company) I work with some of the major finance houses in the City and there are a few in particular that I have dropped into conversation as I know X (Chairman of appointing company) would know them. There is one guy he has a massive reputation and I deal with him a lot and so does X (Chairman of appointing company). That link would have impressed and I know that would have made him sit up and listen. (Jamie)

This prestige that the company and the position afforded an individual was like a currency individuals used to build connections with equal status and over time lock into connections with higher status and prestige. Gwen in discussing her first board appointment to a Fledgling company, referred to the status she brought the company.

This was a little Scottish company in some difficulties. They wanted someone with big company name experience for what was a small company. Being a VP of Asia with X (FTSE 100 company) impressed them big time and I am an ex-Partner of Y (Auditing Firm) so you couldn’t get any better. (Gwen)

Having brought this prestige and status to a Fledgling company, it did not escape Gwen that this appointment enhanced her connections to enable her to gain consideration for a FTSE 100 appointment.

The fact that I’m already on a little board of a little PLC on the Fledgling Index, tiny, but it was listed. That gets noticed and people talk and of course the Chairman of that company knew X (Chairman of FTSE 100 appointing NED) and I know they talked about me and passed my name around. It’s sort of Chinese whispers and that’s how you keep working at it, to make more useful connections. (Gwen)

Gwen was acutely aware of the prestige of her successful colleagues. Particularly from her auditing firm, from which many connections had gone on to hold down positions of CEO and Chairman. These connections were prized by her and acted as referees in her NED appointment. Jane also emphasised the prestige and status of her connections when choosing references for her appointment.

X (FTSE 100 company appointing) is an aerospace defence firm and I had worked for Y company and it’s world class when it comes to this business, no one can touch it. I had worked directly through the CEO there, so I used him as a reference and the Chairman of one of the other boards I sit on happens to be the CEO of Z (major airline) and I used him. These speak to the industry and indeed the government. It’s important to have people of such stature as references, if you are going to get anywhere. I have stood on platforms with these guys and I know it gets me into the bigger ball game. It’s prestigious and it’s infectious if you are there. (Jane)

She seems mindful of the prestige and status of these individuals and their infectious ability to help her make further connections at a higher level in the corporate networks.

The important role of prestige and status in a candidate’s connections is reinforced by the evidence of NEDs who did not feel they had sufficient connections.

Ross came from a HR background. Despite having built up connections in and around board level, when he considered going for a NED position he deliberately set out to increase the prestige and status of his connections. In recalling where he first met the Chairman, he referred to the days when they both worked for a very reputable blue chip company.

In the dim, and distant past the Chairman and I both worked for X (FTSE 100 company). In those days X (FTSE 100 company) was the company to work for, everyone wanted to work there. We both worked there and sort of remembered each other, but to be honest if you worked for X (FTSE 100 company} in those days, you were one of the good guys.

(Ross)

More recently Ross had worked for another global organisation, which was a current FTSE 100 organisation. He was an advisor to the Executive Committee and the Board and had a lot of connections in and around corporate boards.

I sit on the Exec committee and have serviced the main board for seven years and for quite a few years I’ve drawn up the plans for succession on the board. I know all the guys really well and I’m part of the club so to speak. I also know X (ESF company), I’ve worked with them a lot on different appointments and I know A (Chairman of the ESF) really well. I have no doubt she thinks I am a good guy. I know my way around this terrain. (Ross)

He refers to a board director that he had worked with as a ‘city grandee’ who was a friend of his.

Quite often Rex (city grandee) will wander into my office and say I’ve been thinking about X. Rex is a good friend of mine, a city grandee and brilliantly connected. (Ross)

Yet when he considered a NED role he was not confident he had all the connections he needed. Indeed the data suggest that it was not the connections per se he desired, it

was connections with greater prestige and status than he currently possessed. He knew this was necessary to be a credible candidate for a NED role.

A (Chairman of FTSE 100 company) recognised that directors should have a NED and he had set up some arrangement with a mentoring company called X. They contacted me and everyone was given two mentors to share experiences. I think there’s no doubt that having this sort of mentoring process helped because the mentors became referees for me. I worked with two people. One’s a guy called Sir Gwain, he’s a well-known guy around the world. Another guy called Viscount Didier who’s a Belgian who’s also well known. They were prepared to say ‘Ross is a great guy and he’d make a great non exec’. (Ross)

This mentoring scheme, sponsored by his Chairman, helped him to enhance his network with highly prestigious people who would reference him. This was in addition to his existing connections, which had solid FTSE 100 prestige and status. Later he referred to the fact that this network speeded up his progress in gaining a FTSE 100 NED.

Yes definitely, having these guys referencing, the good and the great so to speak, would have helped me skip a few notches on the way. (Ross)

Further testimony on the importance of prestige and status in the appointment process was the evidence of Jacob. He expressed frustration that despite his great credentials, as he saw them, and his good connections, he struggled to gain a FTSE 100 appointment. Jacob’s interview revealed that not alone was his human capital based in the non-listed world of private companies, but as a result, his network of connections was largely based in this world and they were sparsely connected with the FTSE 100 networks. Once he recognised that these worlds did not meet, he took advice and strengthened his connections with the FTSE100 networks. However, what is significant is how he did this and the connections he actually drew upon.

I knew I had the credentials for a FTSE 100 NED, I had no doubt about this. Luckily, I am very well connected into the world of headhunters.

Luckily for me, they operate across the two worlds of private and listed companies. Having realised these worlds are different and it comes down to who you know, I went to a few select functions and met up with some

people my headhunter recommended and lo and behold things started to move. These guys would have been the biz, they carry a lot of weight and I benefited from those connections enormously. The Chairman (FTSE 100 company) who appointed me in the end would have listened to these guys. (Jacob)

Jacob received guidance from his connections in the ESF world and built connections of status and prestige into the FTSE 100 networks. These connections reflected well upon him and enabled faster progress in gaining a FTSE 100 NED.