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< Back Double Your Fun: Tracking Strategic Planning For a Brighter Future Paul Dionne Feb 21, 2025 When it comes to strategic planning, I often start with guidance from Harvard Business School professor Michael Porter. Porter was the first to develop a research-based understanding of competitive strategy, and his approach begins with the dramatic premise that operational effectiveness is not a strategy ! Of course, to have a shot at sustainability and success, any enterprise would do well to focus efforts on running an effective shop. But simply improving how you do business is not sufficient to succeed over the long term. Porter’s claim was meant to be provocative because he wanted strategists to avoid falling into the operations trap. The trap is solely focusing on running an effective shop, which can be imitated by competitors all of whom are also working to improve their operations. When you consider immensely larger competitors such as big banks or fintechs, competing on operations alone probably won’t work. I can assure you that your budget and staffing for your new banking app is tiny compared to what Bank of America is spending on theirs. And yes, credit unions certainly want to offer competitive rates to members and potential members, but good rates alone won’t cut it either. Porter notes that firms who rely on operational effectiveness alone will inevitably be outflanked by competitors who can be similarly effective and are also building strategic advantages such as product differentiation and/or a deep focus on meeting the needs of specific consumer segments. Credit unions need to walk and chew gum – they should run an effective shop and also identify, choose and develop a competitive strategy that rests on being different. How can your credit union create unique value for members and potential members that is difficult for others to copy? The Future Demands Strategic Differentiation In strategic planning, credit unions often throw everything into a single process. The outcome can be muddled and end up over-indexed on the side of objectives that seek to improve operational effectiveness. Far less common is a holistic strategic plan that explicitly seeks to achieve competitive advantage. Operational effectiveness is important, but it is not sufficient to ensure future sustainability. What is also really important is figuring out how you are going to connect with new, especially younger members and provide next-generation financial services that fulfill their needs. That is where “running a tight ship” will fall short over the long haul. The credit union of the 20th century (bless our brilliant and creative forebears!) will not survive the 21st century without major upgrades to a competitive strategy and value proposition that speaks meaningfully to members hailing from the 21st century. It is their century, after all. Old fuddie-duddies like me are just living in it until our kids take over. What is to be done? To ensure you are covering both bases and building a clear and coherent strategy, divide your planning into two tracks. Tracking for Success An alternative approach to strategic planning calls for clearly dividing the process into two tracks, one focused on improving operational effectiveness and one devoted to developing long-term strategic advantage. The first takes into account all those analyses and enhancements to identify and leverage efficiencies, strengthen processes, and find ways to match or beat peers on operational metrics. The second track is more focused on changes that will position the credit union for a bright future. Senior Management and the Board should understand both efforts and learn how to support each of them from their unique perspectives. Track One: Operational Effectiveness The first track is always in play and strategy sessions should result in an annual plan for improving operational effectiveness. The key question is: How can we run a tighter ship? The types of questions and initiatives might include: How can we lower our efficiency ratio or NIM? How can we grow inexpensive, longer-term deposits? Is it time for a core conversion? These efforts can be measured, benchmarks set, and KPIs measured by Senior Management with oversight from the Board. Track Two: Competitive Strategy The second track toward building competitive advantage over the long term is where credit unions often fall short. Devote time to this work! Start from your mission and map out where you want to be in 5, 10, 25 years. The key question is: How can we be viable in the future? The types of questions and initiatives are broader and might include: What financial problems will our future members have and how can we help solve them? What makes us truly different from our competitors and how can we strengthen that difference? What should we stop doing to better advance our priorities? This effort is more difficult to measure, but it is critical to long-term success. One example might include an integrated community development approach that combines household financial well-being, targeted “healthy community” philanthropy and small business investment to create a value proposition that promotes robust communities and economic prosperity for all. Don’t fall into the trap of avoiding long term investments into changes that cannot be easily quantified or that will not deliver in a single annual cycle. Advancing strategy requires vision, discipline, and a willingness to sometimes sacrifice short-term gains. Continuity of purpose and effort are critical here. Combine, Measure, Socialize Does a two-track planning process lead to two business plans and scorecards? Ideally not. After the heavy rocks have been identified and set into place, build a combined business plan for the coming year that clearly defines and includes next steps from each track. This is where the work of integrating the two tracks is finalized and where you should build in mutually-reinforcing activities. Metrics and KPIs are essential for first track goals. A combination of metrics and milestones are often more relevant for second track goals. Socializing both the long-term vision and the short-term business plan across the credit union is another important step. Each staff needs to have an understanding of the work to be done and how they can move the needle. By delineating two tracks in your planning process, you will not lose sight of needed reflection and problem-solving for both business and strategic improvements. You get to double your fun. Don’t avoid the challenging work of designing and implementing changes that will create strategic advantage for your credit union over the long term. Adopting the two tracks in your strategic planning process means you will be more directly and clearly addressing the credit union’s short-term needs and opportunities for the coming year and, at the same time, identifying and building a pathway to longer term success. Previous Next

< Back ERM Is Everyone's Responsibility Michael Daigneault May 23, 2017 10 steps to take to ensure your leadership is doing all it can to identify and manage risk A study released last year— Risk Management for Nonprofits —raised quite a storm in some circles. While the particular risks faced by the charitable sector are often different than those in the credit union community, the study has, nonetheless, been an effective catalyst for raising awareness about the need to have a board-level conversation about risk and risk management. I’ve mentioned before that we have the good fortune of conducting governance assessments for credit unions throughout the United States. Only about a third of the CU boards we’ve assessed describe their ability to identify risk as “very effective,” and an even smaller group of them say they’re “very effective” at mitigating those risks once they’re identified. From a governance point of view, this is a pretty significant finding. And one that demands attention. For many CUs, discussions of risk begin and end with financial matters—interest rate risk, loan loss risk, fraud risk, etc. But is that enough? Aren’t there other risks that organizations face? And, what is risk, anyway? The authors of the Wyman/SeaChange study define risk as “unexpected events and factors that can have a material impact on an organization’s finances, operations, reputation, viability and ability to pursue its mission.” While the definition comes from a study on the charitable nonprofit sector, we think it’s a pretty good place to start in terms of framing the concept of risk for credit union board and committee members. But, let’s look a bit deeper, as some credit unions have begun to do. We are thinking about enterprise risk management, which is not just the responsibility of your board, management, board committees, a risk specialist, your external auditor or even an internal auditor. Yes, each has a role in understanding and managing risk. We’d also suggest that your supervisory or audit committee should play even greater role than typically given them. (Read more about the expanded role of the supervisory committee in “ Supervisory Committees Function Well ’ and “ Internal Watchdog, Plus … ” The Committee of Sponsoring Organizations of the Treadway Commission is a voluntary, private-sector organization dedicated to guiding executive management and governance participants towards more effective, efficient and ethical business operations. It defines ERM as “a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives." Are you doing all that you can, as credit union leaders, “to provide reasonable assurance regarding the achievement of entity objectives?” To get you started, consider these 10 steps: Ensure that your board assumes its full governance role, including not only its legal duties, but formal and informal governance responsibilities. With the rapid pace of change and the many threats facing CUs today, it’s imperative that your board understands that it must play a vital role. Formally task your supervisory or audit committee with ERM. Ensure that your committee is on the leading edge of today’s best practice of going beyond simply conducting an audit. Consistent with board policies, management will still conduct the operational work. It's the committee’s role to ensure it is being done regularly and effectively. Be sure you have the right people, in the right seats, to support effective ERM. Identify the best people from among your volunteers and staff. Develop an explicit risk tolerance statement that indicates the level of risk your credit union is willing to take. Once your board has assumed its duties in this area, this should be one of its first tasks. Be sure to constructively partner with your CEO and his or her management team, as well as members of your supervisory or audit committee. Develop a list of key risks and include brief scenario planning to address them. We had one credit union client that was housed in the World Trade Center on Sept. 11. It lost nearly everyone and everything on that day, but within a day, it was up and operating at a remote location in New Jersey. Scan your credit union’s internal and external risks in your annual strategic planning. Make sure key risks are identified and considered. Include financial benchmarking in your annual scan. Review your financial reports and projections and compare your position to similarly-situated organizations. Set appropriate financial targets to support your risk tolerance statements, as well as your scenario planning. Once you have reviewed your financial benchmarking data, develop a plan to address any risks therein. Put your plan and reports in writing. Be sure that your perceived risks, opportunities and scenario planning is shared broadly with the board, supervisory or audit committee, and appropriate members of the management team. Update your plan on a regular basis. Be sure to revisit your risk tolerance statement, financial benchmarking, scenario planning and your ERM plan annually. We don’t need to tell you that the environment is changing rapidly, and that means your risks are likely evolving, too. Be sure that you’re on top of them and ready to pivot. It’s fundamental to your responsibilities as leaders of your credit union. Your members are counting on you. Previous Next

Shannon Zayas Chief Operating Officer Shannon is the hub of the wheel and the key interface between Quantum Governance’s team and all clients. Shannon is a focused, thoughtful and disciplined leader who oversees many of the operational functions of running the firm from fielding studies to staffing and financial oversight. Shannon worked at Achikian Goldsmiths, a regional retailer where she played key roles in sales, marketing, business solutions, research and accounting. She started her career in the Audit and Advisory practice at KPMG, LLP where she assisted and led audits of public companies in the firm’s consumer and industrial business lines out of both the Philadelphia and the St. Louis offices. Shannon graduated from Virginia Tech in 2001 with a B.S. in Finance and in 2004 with an M.S. in Accounting, and lives in Maryland with her family. Back

Taras Nohas Founder & Principal, TN Governance & Strategy Taras Nohas is the Founder and Principal of TN Governance & Strategy and an Adjunct Consultant with Quantum Governance. Taras has extensive board experience and a true passion for credit union governance. In addition to his firsthand experience, Taras successfully completed the Institute of Corporate Directors Program Designation (ICD.D) at Rotman University, as well as Rotman's Credit Union Directors program (CCD). Recognizing the importance of lifelong learning Taras completed his Master’s Certificate in Risk Management and Business Process from the Schulich School at York University and the Executive Managers Program at the University of Alberta. Taras’ career has been marked by continuous advancement and learning and he served as the Director of Strategy at Servus Credit Union. Taras quickly joined the Executive Leadership Team as Vice President Strategy and Governance followed by his role as SVP Strategy and Governance. As an executive team member, Taras worked closely with the CEO and Board of Directors at Servus. Over the course of his career Taras has been a Board member on several for profit and nonprofit boards. In October 2022, Taras earned the Certified Management Consulting designation (CMC), which represents a commitment to the highest standards of consulting and adherence to CMC Canada’s Uniform Code of Professional Conduct. Taras is a native of Edmonton and in his early education, completed a Bachelor of Commerce and an MBA at the University of Alberta. Learn More Back

< Back The State Of Credit Union Governance 2020: A Summary Jennie Boden Apr 2, 2020 For years, we’ve dreamt of studying the state of credit union governance. We know what you’re thinking: Dream bigger. Some people dream of European vacations. Fast cars. Beach houses. But for governance geeks like us, it’s often all about the data. In 2018, we were fortunate to partner with CUES to realize our dream, and The State of Credit Union Governance, 2018 was published. We made some groundbreaking discoveries, like reporting that board members and CEOs frequently differ on their perceptions about governance—and that their perceptions diverge even further based on tenure. We even found that bigger really may be better: Board members and CEOs of CUs with assets of $1 billion or greater had statistically and significantly higher survey scores overall on 18 of the 21 key questions asked concerning matters of governance. And we were satisfied, for a while. But our compendium of data kept growing, and our drive to create more information for you, our colleagues, clients and friends throughout the credit union community, was compelling. Today, we are pleased to announce The State of Credit Union Governance, 2020, which provides updated figures for 2018-2019 and draws on data from the governance assessment of 115 additional credit unions—114 in the U.S. and one based in Jamaica—to enrich the findings from our 2018 report. This year’s report is a collaboration between CUES, Quantum Governance and The David and Sharon Johnston Centre for Corporate Governance and Innovation at the Rotman School of Management, University of Toronto. Our findings are also derived from a supplemental online survey conducted in September 2019 with responses from 320 directors and CEOs across 170 U.S. credit unions. While many of the key findings from 2018 still ring true today (if you haven’t read the 2018 report , we encourage you to begin there), the 2020 report is full of new discoveries that will challenge you and your credit union to new levels of governance excellence. 2020 Key Findings Board Structure and Composition: Demographic diversity was identified as the number one priority for credit union board recruitment (53%). The next highest priority identified when recruiting new members to credit union boards was an ability to focus on the future (51%). (See Figure 1.) Board members continue to think that soft skills, such as an ability to focus on the future (76%) and independent mindedness (66%), are most valuable in the boardroom. Credit union boards are more gender-diverse than their counterparts in other sectors. The average credit union board has nine members, of which three are women (36%) and one is a visible minority (16%). Board Governance: Credit union boards that focus on bolstering their governance tend to adopt a governance committee more readily than those that do not have a concerted focus on good governance. When looking closely at the 1,060 director responses in our sample, we found that directors on the same board would often report very different—and sometimes opposing—perspectives on their board’s effectiveness in four fundamental areas of board renewal: 1) periodic governance assessment; 2) the action plan based on governance assessment outcomes; 3) the director onboarding process; and 4) the frequency of board member renewal. Board Leadership: Survey respondents identified seven important leadership functions for board chairs that fall within two primary categories: 1) establishing processes (e.g., allocating time, setting the agenda, etc.); and 2) working with people (e.g., appointing committee members and chairs). Although most survey participants report that their boards do not limit the number of terms a board chair can serve, we found that more than a third do. Term limits for board chairs can range anywhere from a year to more than 10 years. More than half of the participants whose boards have a term limit in place for their chairs reported limits of less than five years. An impressive 92% of all surveyed board members report that their board is effective at maintaining a good working relationship with their CEO. However, as in the 2018 report, the average board member and CEO differed on how effective they thought their boards were on a range of key governance measures. In 2020, across the 81 surveyed CUs that provided a CEO response, we found that there’s disagreement between the board and CEO regarding the board’s effectiveness on 22 out of 49 survey questions, on average. Credit Union Strategy: We found that 32% of survey respondents do not feel that their board is effective in helping to develop the credit union’s vision, mission and strategy. Most survey respondents say they should slash—by a third—the average time they spend on routine items and operational oversight (i.e., items that do not require debate or can be approved with a single motion as on a consent agenda) and invest an average of 10% more of their time on strategic matters. (See Figure 2.) Decision-Making: Many credit unions have at least one director who says that the board is ineffective at asking hard questions (53%), holding each other accountable (54%) or engaging all members in the work of the board (49%). While directors had misgivings about how decisions are reached, most believe the decisions their boards made were ultimately good, and they could stand by them and speak with one voice. Recommendations Since many of the findings from the 2018 report remain relevant, we encourage you to revisit those recommendations as a baseline; they will serve you well as strong building blocks for any governance program. From there, we would encourage you to consider our newest recommendations from the 2020 report: Board Renewal: Focus on strategic thinking and independent mindedness. Your credit union is a complex financial institution navigating the era of greatest change in the history of the credit union movement. As a result, your board requires meaningful financial literacy, business acumen and specialized skills in such specialties as law, accounting and human resources. However, even boards with the most skilled members will fail to add value without independent mindedness and strategic thinking. Board Diversity: More than ever, credit unions are acknowledging the value of demographic diversity among board members, including gender, race/ethnicity and age. However talking about it as a priority is not enough. To ensure that your board is truly diverse, you will need to be clear in your objectives and work hard at executing them. Once you know the demographic balance you are looking for, you will need a plan to help you find the right people. Board Leadership: Take your board chair position very seriously. Although your CEO is responsible for carrying out your credit union’s strategy on a day-to-day basis, no individual in your credit union has more potential to add value than your board chair. Ensure that you have a robust, concrete job description in place for this important position. Board Governance: Build alignment around what “effective” truly means. It is both normal and constructive for board members to disagree. One might argue that without disagreement there can be no excellent decisions. In too many cases, however, our data highlights boards where one or more directors have assessed the board’s effectiveness at polar opposite ends of the spectrum. Ensure that you are engaging in these types of conversations in the boardroom—what does “effective” really look like for you? Strategic Thinking, Learning and Planning: Invest more time in strategic matters. The most valuable skill identified in credit union boardrooms today is the ability to focus on the future, yet we found that 32% of survey respondents do not feel that their board is effective in helping to develop the credit union’s vision, mission and strategy. Ensure that your board is doing everything it can to be effective in this fundamental role and responsibility. Previous Next

< Back The Benefits of Board Committees Michael Daigneault Nov 1, 2016 Get the most out of them by applying these bright ideas. If there’s one thing that board members and management often share, it is a disturbing sense of uncertainty as to the real benefits of board committees. From a board member’s point of view, committee meetings can sometimes be seen as another meeting to travel to, one more report to read, or—worse yet—an additional PowerPoint presentation to sit through. To top it off, it can frequently appear to volunteer leaders that “all their hard work” on a committee is—at times—somewhat less than appreciated by both their fellow board members and management alike. Of course, the challenge of committee work is not exclusive to board members or other volunteer leaders. Management has the responsibility of assigning staff (who already have full-time jobs) to assist the work of the committees, helping to gather information, coordinating schedules, writing reports, preparing presentations as well as developing motions and updating or crafting new policies for the committee’s (and board’s) final consideration. Staff is regularly “rewarded” for their efforts by then being asked to assist in implementing the to-do list of items that emerge from an affirmative vote at the board level. You may ask, “Does this mean that board committees should be abolished?” “No,” we would respond. “But,” you might think, “to overcome the types of burdens described above, committees better have some real benefits!” Fortunately, if done well—they do provide some very real benefits. If not done well, however, they are not the “value-add” they are intended to be. Do you know whether your committees are truly effective? When is the last time you evaluated your board committees (as well as the overall committee structure) to ensure that they are providing genuine value to your credit union? When established, charged and composed effectively, board committees can be a valuable asset to both your board and your management team by helping to: identify and examine key issues, concerns and questions ahead of board meetings. give laser focus to a project delegated by the board and/or helping to get things done more quickly and efficiently than would be possible for the full board. more equitably distribute the board’s work, since committee assignments can be dispersed among board members. facilitate trust-building between board members and management through their combined efforts. (It’s always a good idea to include relevant members of your management team on your board committees, too!) increase engagement among individual board members and help them make a more meaningful contribution to the board and to the credit union. But, what does it take to establish, charge, and compose your board’s committees effectively? The State of Your Committees There’s no right or wrong number or kind of committees for each CU board. In fact, we would argue that beyond supervisory committees for federal credit unions and some state-chartered CUs and audit committees for other state-chartered credit unions, there really isn’t a must-have list of committees for credit unions. In establishing or reviewing your board committee structure, the two rules of thumb that we would have you follow are these: Board committees should be established to do the work of the board, not the work of the staff; and Establish standing, board committees only when there is sustained, permanent, ongoing work for the committee members to undertake. Otherwise, we encourage you to use ad-hoc committees and task forces to accomplish your work early and often. Ad-hoc committees are likely to exist for more than a year, but not intended to be permanent. For example, a CU board may create a “new headquarters committee” that would exist for several years. Its purpose would be to help the board understand and oversee the important process of: 1) identifying the need for a new headquarters; 2) outlining the central benefits and challenges of doing so; 3) identifying or constructing the new building; 4) managing the financial implications of the new headquarters; and 5) overseeing the transition plan to move to the new building. At the end of its work, once the credit union has successfully moved into the new building, the committee would be dissolved. Task forces are even more temporary. They almost always exist for less than a year, and they are generally subgroups made up of both board and staff, but they may also include other volunteers or even outside experts or consultants. Task forces are charged with focusing on (and learning more about) a particular issue, question, opportunity or challenge and then reporting back to the board their thoughts and findings within a defined period of time. Sometimes task forces may simply report back the information they have gathered. In other cases, they are also asked to provide one or more recommendations for the board’s consideration. Once they have provided their recommendations, unless the board asks for further work from the task force, they are dissolved. What’s a Committee to Do? Charging your committees—that is setting their course of action—is an important board responsibility. Did you notice that we said board responsibility and not management responsibility? This is key. Board members need to determine what you want your committees to accomplish. In the spirit of constructive partnership, we encourage you to ask your CEO and management team for their input. Once you know what you want your committees to accomplish, we suggest you set it down in a committee charter. Include these key sections in the charter document: Prologue: A brief overview of the committee’s key function. Meetings: A statement on how frequently the committee must meet. Members: The required number and qualifications of committee members. This may include restrictions on committee membership. For example, if you opt for an executive compensation committee, you would likely not want a member of the management team to serve on this committee. Committee leadership: Outline any position requirements and responsibilities for the committee chair and/or secretary Role of the CEO: Outline the roles and responsibilities of the CEO vis-à-vis this particular committee. Charge: Detail the roles and responsibilities of the committee, including reporting requirements to the board. The most important thing to know about all of your board committees is this: Unless it’s explicitly stated, your board’s committees do not have decision-making authority; they can only provide recommendations to the full board for their action. Let us repeat that: Unless it’s explicitly stated, your board’s committees do not have decision-making authority; they can only provide recommendations to the board for their action. Finding the Right People to Serve Unless governmentally regulated (such as for supervisory or audit committees), there is no hard-and-fast rule about the number of members a committee should have. Three to five members is often optimal. Committees generally have more credibility if there is some diversity of opinions and experiences. Too many opinions and duplicative effort can result when a committee grows too large. This is particularly the case with credit unions that have fairly small boards. If the committee grows too large, efficiency may be lost. The ideal composition of a committee depends on a variety of factors, such as the committee’s purpose, charter, size, chair and even the experience of its members. It’s best to have at least one board member on a committee. But including non-board members or community members on board committees can be an effective way of reaching out and potentially beginning to build your bench for future board members. Each committee should also have an official non-voting staff liaison appointed to help carry out its efforts. Your board chair and the CEO should also be treated as ex-officio, non-voting members of all board committees unless the substance of the committee’s deliberations would be in conflict with their attendance. (Consider our previous example where a CEO would not attend a meeting of a committee doing an analysis of his or her performance and compensation package.) Other than these basic parameters, be bold. Cast your net widely, and don’t assume that your strategic planning task force should be filled with only strategic thinkers. Remember, there are other aspects to strategic planning that are important, such as developing a realistic budget for those strategic goals. Thus, a financial mind would be a good addition to your strategic task force, too. Our guess is that if you are like most credit union boards, you are probably secretly worrying about your board committees. Shed some needed light on them. Don’t just carry on with the same committee structure that you’ve always had, just because you’ve always had it. Board committees are a significant component of your credit union’s governance structure. And they draw a significant number of staff resources. Be sure that you are using them wisely. Do you have the right committees? Tasked with the right responsibilities? Composed with the right folks and aided by the right staff? Be brave. Ask yourselves these questions—and more questions like them. You’ll be very glad you did. Previous Next

Meet Our Team Jennie Boden Chief Executive Officer Read More Paul Dionne Chief Strategy Officer Read More Shannon Zayas Chief Operating Officer Read More Gisèle Manole Chief Marketing Officer Read More Arlene Reuss Governance Administrator Read More

< Back Assessing Staff's Strategic Planning Path Jennie Boden Aug 2, 2017 The challenge is helping front-line credit union folks see the big picture. Should credit union staff members beyond the senior level be included in strategic planning? If yes, when and how will such involvement be most beneficial for a credit union? The diagram at right will help you consider the answer to this question. The board and senior management team should work in constructive partnership to set the credit union’s overarching vision, mission, culture (or values), strategic goals, objectives and metrics (see the items in the accompanying graphic in blue). Work plans (see items in red) are then developed and executed by the senior management team in partnership with the rest of the staff, based on the original work set forth on the vision, mission and culture. There are a few caveats, of course. The senior management team should be recused from some parts of the strategic planning process with the board when (a) the board anticipates that it may need to make a CEO change and wants to discuss it as a part of going in a “new strategic direction”; (b) the board discusses the possibility of restructuring the senior management team with just the CEO; and/or (c) there are important governance issues concerning the board, which could morph into a strategic effort focused on the board or governance-only issues, that they want to first discuss among themselves and (usually) with the CEO. Figure 1: Strategic Planning Elements Including more staff in the visioning process can, at times, be limiting, so the board and senior management team should consider whether this might be an issue. Staff can tend to think more along operational lines, and the purpose of strategic planning at the board and senior management team level is to think, to think big, and to think beyond what is happening today. However, some staff, especially individuals with specialized skill sets and knowledge, could be included at the board and senior management team level of planning, and all staff can and should be included in up-front brainstorming, research and data gathering. Additionally, they are vital to fully developing the more detailed operational work plans (the items in orange) that flow from the board-level strategic goals, objectives and metrics. Finally, they would need to be involved as a vital stakeholder group in the communications effort articulating the strategic planning efforts of leadership. After all, they will be asked to embrace and execute the plan. Previous Next

< Back Tell Me Something I Don’t Know: What You Need to Know About Assessments Michael Daigneault and Gisele Manole May 22, 2018 Solid financials aren’t necessarily a sign of a high-performance board. We don’t know what we don’t know. It’s such an obvious thing to state, and yet we would suggest this simple statement of fact may be the key to the future of your credit union. Often our clients approach us with a sense that although their credit union has a healthy balance sheet and continues to grow its membership and assets, there is something they could be doing better--that their board and committees could be more effective in the work they do on behalf of the credit union. Without an obvious or discernible problem, they just can’t put their finger on it. Maybe it is time to “take stock” or assess. Remember, the fact that your credit union is doing well doesn’t mean that your board is following suit. In our experience, a number of situations may be opportune for doing an assessment, including: When a new chair or CEO comes on board. Fresh ideas can get caught up in a web of procedure. Clarity and understanding of best practices and why they are in place makes getting to the heart of matters more efficient and ultimately more productive. When you want to take the CU’s leadership or strategy to the next level. If you’re sensing that your leadership is relying on older methods or governance practices that need modernization to keep up with the demands of the marketplace, or if your strategic plan is not agile enough for the credit union to accomplish what it has set out to do, the time has come for a deep-dive assessment. After a crisis. Any major internal or external shake-up that causes board members and management to pause and ask “what happened and how do we prevent it from happening again/” signals the right time to revisit what is working with your governance and what is not. When you’re experiencing very high-or very low director turnover. If your board is struggling to keep up with orienting new members each year, or if it needs to break out of its routine to advance your credit union and its mission, a targeted assessment may gather the intelligence necessary to shift lanes. When you have not done an assessment in the last three years. Simply stated, best practices indicate that there should be regular assessment to ensure that your board, culture and governance are fine-tuned and prepared to shoulder the responsibilities of exceptional leadership and service to your credit union. Where do you start once you have recognized the need to undertake an assessment? Although most groups, including ours, will tailor assessments to the needs and issues facing your specific credit union, there are a few general types of assessment to keep in mind. Assessment of the board “as a whole” Review of board committees Assessment of board officers including the chair, vice chair, secretary, treasurer and committee chairs Self-assessment by individual board members, which may also include peer-to-peer evaluation Appraisal and review of CEO Risk assessment to address such topics as financial risk, strategic planning and risks associated with growing technologically Assessment in and of itself is strongly recommended (CUES and Quantum Governance together offer a survey-only assessment tool ). But in our recently published The State of Credit Union Governance 2018 report , we discovered that credit unions that don’t undertake a more comprehensive assessment at some point may receive results that skew almost exclusively positive. Such a skewed and rosy viewpoint could prevent some credit unions from taking necessary and corrective action. In many cases, a full governance assessment inclusive of surveys, interviews and document review is essential to truly understanding the challenges facing your credit union. Since we don’t know, what we don’t know, we need to stay curious. Asking critical questions of yourselves and holding yourselves accountable is the only way to ensure the success of your governance and leadership efforts, as well as its impact on your community. Previous Next

Cris Wineinger President, Wineinger & Associates Cristina Wineinger, President of Wineinger & Associates is an adjunct Senior Consultant at Quantum Governance. Cristina has over 27 years of experience in all aspects of nonprofit management and consulting both in the United States and Bermuda (where she was born and raised). Her diverse client base includes churches, private schools, environmental agencies, cultural organizations, social service providers and hospitals. Her consulting services encompass capital campaign management, business assessments, governance, strategic planning and nonprofit mergers. In the last 27 years, Cristina has provided guidance to fundraising campaigns totaling over $175 million. One of her more recent clients is the Bermuda Hospitals Charitable Trust where she helped raise $35 million in a country of only 65,000 people. This fundraising campaign is the largest in Bermuda’s history. Additionally, Cristina has helped many nonprofits to chart their path forward through comprehensive strategic assessments and planning. In 2005, Cristina moved to the US with her family and launched Wineinger & Associates, Ltd., a full-service consulting firm for nonprofits. Wineinger & Associates serves a variety of nonprofit organizations both in Bermuda and across the US. In addition to her business, Cristina is a popular speaker both in Bermuda and the US and an Executive Partner at the College of William & Mary’s Mason School of Business. Learn More Back

Log In Home About Services Policy Shop Resources Contact More We're Focused on Small Credit Unions with Big Missions. Quantum Governance, L3C is furthering its mission to serve the financial cooperative movement with a special focus on small credit unions: those with assets <$250M. For more than a decade, Quantum Governance, L3C has offered governance and strategy assessments, consulting, facilitation and education services to hundreds of credit unions in the United States and Canada. While we have proudly served more than a third of the credit unions whose assets are $1B+, we recognize that small credit unions have important governance and strategy needs, too, and those needs must be met if small credit unions are to thrive into the future. As a mission-driven, low-profit firm dedicated to the public good, we believe Quantum Governance, L3C is uniquely positioned to give small credit unions the support, knowledge and resources they need to continue serving their members and fulfilling their missions with excellence. Quantum Governance provides a structured approach to serving small credit unions with three tiers of services to meet your unique needs. 01 Governance Check-Up The Governance Check-Up includes three main components, the: 1) Governance Survey; 2) Governance Survey Report; and 3) Governance Policy Package. This level provides your credit union with a high-level “check-up” on key governance markers for $3,750. Survey Report Policies The Governance Survey Quantum Governance, L3C has spent more than a decade developing, testing and fine-tuning its Governance Survey that provides unparalleled insights into six key areas: 1) Vision, Mission & Strategy; 2) Bylaws & Board Policies; 3) Board Structure & Composition; 4) Fiduciary Oversight; 5) Governance & Leadership; and 6) Supervisory/Audit Committee. The survey is a turnkey, online tool gathering both quantitative and qualitative data through a series of multiple choice and narrative questions. The Governance Survey Report After members of your leadership complete the online assessment, Quantum Governance, L3C will prepare and deliver a Governance Survey Report that includes the aggregated data for each survey section and four summary charts, including comparisons to your credit union’s peer group. The Governance Policy Package Quantum Governance, L3C has developed an extensive library of policies designed to ensure that credit unions have the most contemporary tools in their pursuit of governance excellence. Credit unions choosing the Governance Check-Up will receive 9 customizable policy templates, each valued at $100. Interviews Report Consulting Workshops Governance Interviews Our consultants will conduct up to three individual interviews (Board Chair, Governance Committee Chair, if applicable, and CEO) to inform the Executive Report. Executive Report Our consultants will develop an Executive Report that graphically presents your survey results with top-line analysis and recommendations for how your credit union can strengthen its governance practices for future success. One-Hour Virtual Consulting Your Quantum Governance, L3C Lead Consultant will conduct a virtual meeting with the Board Chair and CEO (with the Governance Committee Chair as an optional participant) to discuss the analysis and findings and recommendations set forth in the Executive Report. Additionally, we will collaborate with you to build agendas for the two, 2-hour virtual governance workshops. Two 2-hour Governance Workshops Your Quantum Governance, L3C Lead Consultant will host two engaging and interactive workshops (2-hours each) for your credit union’s leadership. During the first workshop, our consultant will facilitate discussions around the Executive Report’s key findings and relevant governance best practices. The second workshop will be customized to suit your credit union’s needs and may touch on topics such as Board succession planning, developing Board strategic focus, building a constructive partnership between the Board and CEO and more. 02 Governance Skill Building Governance Skill Building includes all of the elements from the Governance Check-Up (details above) in addition to a more detailed Executive Report, two 2-hour governance workshops and preparatory time, including individual interviews with your Board Chair, Governance Committee Chair, if applicable, and CEO and a 1-hour consulting call to prepare. The fee for this level of consulting is $10,000. 03 Governance Evolution Governance Evolution includes all the elements from the Governance Check-Up and the Governance Skill Building, in addition to the facilitated development and delivery of a Governance Action Plan with three hours of implementation support from Quantum Governance, L3C. This fee for this level, with all of the deliverables and benefits, is $15,000. Workshop Governance Action Plan Consulting Governance Action Planning Workshop Your Lead Consultant will host a virtual planning session where it all comes together. Informed by the Executive Report and two Governance Workshops, Quantum Governance, L3C will take your credit union’s leadership through a tightly facilitated process to select, evaluate and prioritize what is most important to your credit union’s governance evolution - all with an eye toward creating a Governance Action Plan Governance Action Plan Quantum Governance, L3C will digest and synthesize discussions from the Governance Action Planning Workshop and submit to the credit union a draft Governance Action Plan which provides a clear roadmap on the steps to take to evolve your credit union’s governance system, practices and culture to the next level of excellence. Action Planning Follow-Up and Additional Consulting Quantum Governance, L3C will present the Governance Action Plan to the Board Chair, Governance Committee Chair (optional) and CEO in a one-hour virtual consulting session to begin institutionalizing the Governance Action Plan. Your credit union’s leadership may utilize two additional hours of Quantum Governance, L3C’s consulting expertise towards executing your credit union’s Governance Action Plan. Myth #1 "We don’t have the time or budget to work on our governance .” We’ve scaled our services to ensure credit unions with smaller budgets can evolve their governance practices and culture to keep up with the financial cooperative’s evolution and be a strong partner to their executive leadership. Our small credit union governance services start at $3,750. About Quantum Governance, L3C Our vision is Exceptional Leadership for Mission-Driven Organizations. Quantum Governance is an L3C, a low-profit, limited-liability firm dedicated to the public good. We are a team of experts in the fields of governance and strategy designed to help credit unions realize the full potential of their cooperative missions. Our team provides assessment, consulting, planning, facilitation and implementation services to credit unions of all sizes. Founded over a decade ago, our mission is to partner with mission-driven leaders to enhance governance and strategy effectiveness for exceptional outcomes. For more information on our services for small credit unions with big missions, contact Quantum Governance’s Chief Marketing Officer Gisele Manole at gisele@quantumgovernance.net . Home About Services Grant Opportunities Policy Shop Resources Contact CONTACT US First name Last name Email Write a message Submit Thank you for contacting us! SOCIALS CALL US 603.513.2852 MAILING P.O. Box 204 Henniker, NH 0324 2 ©2023 by Quantum Governance, L3C. All rights reserved.

< Back 'Quantum' Board Engagement Michael Daigneault Jul 22, 2014 Six questions to help you more fully get your board engaged The board meeting is a good place to start working on board engagement, as I discussed in my last Good Governance column . However, you’ll need to go well beyond the board meeting experience to really make headway on director engagement. At Quantum Governance, L3C , we recommend answering these six key questions to help you more fully engage your directors in their work toward fulfilling the mission and vision of your credit union: Are your directors emotionally connected to your mission? The roots of the credit union movement are deep. For more than 100 years, credit unions have been providing quality financial services to their members. Are your directors aware of and committed to the cooperative principles that drive the movement? Are they committed to democratic member control? Voluntary and open membership? Cooperation among cooperatives? Do your directors understand what they can do to help? Does each board member have a sense of the value that are contributing? But for their active contribution, how would the work of the board and credit union be less? This question also reflects on the very purpose of board meetings and how their agendas are crafted. Don’t just focus on telling or reporting – this tends to foster a type of passive oversight from your directors. Are they working at the appropriate skill and ability level? Nothing dampers someone’s interest more quickly than feeling like they’re either over- or under-whelmed with the task at hand. Be sure your directors are adequately briefed and appropriately assigned to the right committee or taskforce, one that matches – and engages, their interests, skills and abilities. Are you sustaining their involvement throughout the year? This question extends beyond your monthly meetings. Are directors actively engaged between board meetings? Are you exposing your directors to other aspects of your credit union’s business? Are they attending outreach and community events? Are they serving as enthusiastic ambassadors and representing the credit union with real pride? Do you and your colleagues challenge yourselves to improve everyone’s performance? Not surprisingly, the notion of continual learning and improvement is often a key to sustained engagement. Stagnation begets stagnation. This is particularly a key issue in the credit union community where board turnover takes place slowly. As such, it is even more important for you and your fellow directors to participate in a regular process of self-evaluation and improvement. Is your leadership constantly building the web of relationships you need to succeed – both internally and externally? Focus on the resources available to you and your directors – from members of your senior management team to community resources and national educational resources like those offered by CUES. There are about 7,000 credit unions in the United States and more internationally. It’s safe to say you are not alone in your experiences and questions. Reach out. Actively engage, share what you have learned and keep learning from others. The rewards will be plentiful – for you – for them – and for your members! Previous Next