Apr
29
The Institute of Directors‘ Annual Convention is being held today and it will receive a significant amount of media coverage – quite rightly. Unfortunately, the convention is used as an opportunity for the IoD to whinge at the government.
I’m open to suggestions that this isn’t the fault of the IoD but that it is characterised like this by the media coverage. But I suspect that it is an accurate portrayal of the IoD and its members.
I was a member of the IoD for a year around 2006. I joined because I was setting up my own business, Newscounter, and I wanted to be in an environment where I could meet inspiring people, learn useful lessons for setting up a business and develop a network of people who could help (and possibly recruit a non executive director). I joked with comrades that I was practising entryism to change the IoD’s policy positions – though that wasn’t my primary purpose.
I left the IoD a year later not out because I was disillusioned but because I was utterly underwhelmed. The IoD appeared to be full of middle managers rather than entreprenuers; directors rather than chief executives, older (white) men rather than energetic bright inspiring leaders.
One reason for this might be the sheer cost involved. Not only did membership cost around £2 per day but use of the Pall Mall location was expensive and attendance at events always came at a high price. The central London branch appeared pretty active but rarely had an event that cost less than £50 to attend. I’d suggest that unless you are at a fairly big, well-established company, you have better things to spend your money on (corporate or personal). And bear in mind that anyone attending today’s conference is someone who can afford a whole day out of the office, in the middle of a recession.
During my year as a member, I was not given the opportunity to influence its policy positions once. It’s possible that I missed something but it’s unlikely as I was looking for chances to foist my left-wing prejudices on this free market institution. The newish director general, Miles Templemann is highly regarded (and rightly so in my experience) but it appears that his outreach to members is limited: his blog has been updated four times in the last four months.
This is important because it’s basic message seems to be: business is doing its bit to get out of the recession, government needs to cut public spending so it’s also helping. It’s an outrageous position. Government debt is as it is partly because government has had to bailout failing businesses. You don’t hear the IoD apologising for the failings of its members (the scrutiny of company directors must have been a particular fault) for their role in increasing national debt. You don’t hear the IoD reflecting that the increases in personal taxation in the budget largely funded extra support for business.
The IoD does have a very impressive (and prohibitively expensive) qualification for company directors. I admire – and support in public policy terms – its desire to professionalise company directorships. And I don’t blame it for being full of middle managers – most membership organisations admit that you can’t choose your members. But I wish it would admit that its policy positions don’t have the same democratic authority as, say, the TUC and that company directors share the blame for the financial crisis. And I wish it would spend more time talking about issues within its remit (skilling company directors) than those slightly less related (personal taxation levels).
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Mathew thanks for your opinion about the IOD membership I find it useful and reassuring.
Regards,
Ina