Phase one - pilot study

3.3.1.1 Aims of the pilot study

The pilot study was taken with a number of aims in mind. Firstly, the researcher needed to confirm the feasibility of the research methods with members of the FTSE 100 corporate elite and assess their effectiveness in providing rich data that would support a grounded approach to her analysis. She wished to confirm whether access was possible and whether the interview questions would yield reliable and appropriate data for exploring the appointment process of NEDs to FTSE 100 companies. The interview questions were derived from the main research question and discussion with the researcher’s supervisor. Secondly, she wished to use the pilot study to explore the appointment process and gain data that could be triangulated in order to build a holistic understanding of it. There are three main stakeholders in the appointment process of a NED namely: NEDs; Chairmen; and ESFs. The researcher sought to elicit data through the use of interviews from three representatives in each stakeholder group, in order to be able to triangulate the data and gain a context rich and meaningful description of the appointment process. This valid and holistic picture of the appointment process guided the researcher in refining the methodology for the main study.

3.3.1.2 The sample group of stakeholders

Chairmen and newly appointed NEDs were identified using the database BoardEX for FTSE 100 company data, combined with data about corporate boards reported on corporate websites. An initial list of 156 new appointments was reduced to 42 individuals who had gained their first NED with a FTSE 100 company. The researcher made contact with a total of 27 newly appointed NEDs with a letter of invitation to participate in the project. These 27 individuals were chosen as they had connections with Cranfield University and the researcher used this institutional connection to eventually gain access to 3 NEDs who were willing to be interviewed. As described in her methods, the researcher incorporated ‘snowball’ sampling, which calls upon interviewees to make further introductions. One NED gave introductions to two Chairmen who agreed to be interviewed and one Chairman gave an introduction to the

third Chairman who agreed to be interviewed. Six ESFs were contacted, three agreed to be interviewed, one who had strong affiliations with Cranfield and two who had been introduced by a NED candidate. In this way the researcher gained access to nine interviewees. While ‘snowball’ sampling has emerged as an important qualitative tool for gaining access to members of the corporate elite, it is vulnerable to the introduction of sample bias. Given the difficulties associated with securing interviews with corporate elites, it was felt that any bias introduced via sampling was unavoidable. This study makes no claim beyond being a qualitative study designed to better understand the appointment process of NEDs to FTSE 100 companies.

The researcher gained access to nine stakeholders who had been involved in the NED appointment process the year before she interviewed them. This timing was to ensure their experiences were recent and easier to recall. For the pilot, she interviewed nine stakeholders during the period November 2009 – November 2010 as follows:

 Three NEDs who had been successful in gaining their first appointment to a FTSE 100 board in 2008-2009.

 Three Chairmen who had appointed a first-time NED to a FTSE 100 board in 2008-2009.

 Three ESFs who had been involved in the appointment of a first-time NED to a FTSE 100 board in 2008-2009.

Despite the problem with access to the corporate elite, there was a purposeful attempt to have a reasonable spread of industries represented and a gender mix. Sector and gender of individuals detailed in Table 3.1.

Table 3.1 Sectors and gender of stakeholders

Job Title Gender Sector

Chairman, FTSE 100 company Male Mining

Chairman, FTSE 100 company Male Financial Services Chairman, FTSE 100 company Female Property

NED, FTSE 100 company Female Retail

NED, FTSE 100 company Male Brewing

NED, FTSE 100 company Male Energy

ESF Member, Founding Partner Top 10 Global Executive Search Firm

Female Interview on NED appointment to a retail organisation

ESF Member, Chair of Board Practice

Top 5 Global Executive Search Firm

Female Interview on NED appointment to a manufacturing organisation

ESF Member, Chair of Board Practice

Top 5 Global Executive Search firm

Male Interview on NED appointment to a media organisation

Source: BoardEx

3.3.1.3 Data Collection

Each face to face interview with a stakeholder lasted between 60-90 minutes and all interviewees agreed to be digitally recorded. The researcher went through the confidential nature of the interview process and ensured the anonymity of individuals during the analysis and reporting stages of the project. Eight interviews were conducted in the interviewees’ offices and one was conducted in a public coffee house, which was insisted upon by the interviewee. Based on the main research question, an interview protocol for interviewing NEDs was drawn up consisting of three questions on their first appointment to a FTSE 100 company. Each question was supported by a number of probing questions to use if candidates did not open up and to ensure all candidates provided similar levels of rich data. (See interview protocol in Appendix B).

The interview questions were adapted for appropriate interviewing of the Chairmen and the members of Executive Search Firms. After each interview the researcher completed a ‘Contact Summary Sheet’ (Miles and Huberman,1994) in Appendix A.

Interviews were the principle method of data collection supported by demographic information about interviewees from BoardEx.