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< Back A Continuously Bigger and Better Box Jennie Boden and Dr. Alexander Stein of Dolus Advisors Feb 1, 2022 Like a nautilus, Hudson Valley Credit Union’s board evolves beautifully into its next stage of governance. The nautilus is a shelled sea creature known for renewing itself in a most beautiful fashion. It builds a new chamber inside the cover of its shell, moves out of the compartment in which it has been living, and seals off the old. As it progresses over time, the nautilus creates an amazing spiral shell with many sections. In an ideal world, credit union boards would renew themselves as the nautilus does—building on the old to create a new, more expansive governance space. But how many credit unions engage in conversations about building the next era of board governance? In the 2020 State of Credit Union Governance , we reported that almost 25% of all board members have held their positions for at least 20 years. That’s okay to some extent because historical continuity is good. Institutional knowledge and accrued wisdom are important to tackling today’s complexities. On the other hand, we’ve seen directors who perpetuated a negative culture for decades and boards where members were battling serious age-related health issues. We’ve also seen boards struggle under the weight of training too many newcomers, people with insufficient experience joining the boards of $2 billion credit unions, and recent additions who didn’t understand the difference between governing and managing. How do credit union boards transition to their next stage more like the nautilus—gracefully striking a balance between historical continuity and the next right steps for the board and the organization overall? When leaders at $6.5 billion Hudson Valley Credit Union , Poughkeepsie, New York, decided it was time to take a fresh, top-to-bottom look at the board’s nominations process, we were privileged to accompany them and provide our professional guidance along the way. We are grateful to them for letting us tell you their elegant and effective story of board renewal. “As our credit union continued to grow to over $6 billion, we knew we needed to transform our governance,” says Board Chair Nancy Kappler-Foster, a CUES member. “Through our work with Quantum Governance and Dolus Advisors on increasing the effectiveness of our policies and practices—and in particular the constructive partnership between the board and the CEO—we understood the next step was to focus on the ideal board and supervisory committee of the future and then build a state-of-the-art nominations process to achieve that.” Getting Started Led by Kappler-Foster, the board began by chartering a new governance and nominations committee, integrating the original nominations committee as a subcommittee within a broader governance committee charter; redefining the roles and responsibilities for board members; and reevaluating its board-level committee structure overall. Next, the board examined its entire nominations process from recruiting to onboarding. We facilitated workshops with the board, management and supervisory committee that enabled Hudson Valley CU’s volunteers and management team members to commit to a new process that: Developed an overall vision for the nominations process, attending to group dynamics, tone and culture, trust, psychological safety and, of course, good governance. Leveraged decision science, combining business tactics, technology and behavioral sciences through a collaborative approach to help leaders make optimal, data-driven decisions. Surveyed the decision landscape, identifying and evaluating the credit union’s needs and ultimate goals at the board and supervisory committee levels and forecasting the probable consequences of its decisions. Challenged everyone involved to overcome their biases and blind spots, subordinating their own personal interests to the credit union’s best interests. Valued character in the boardroom as highly as key performance indicators, identifying not only hard skills and expertise but also character traits and attributes to drive the identification and prioritization of candidates. Identifying Needed Skills and Attributes We helped Hudson Valley CU’s leaders clarify the skills and attributes they sought in new board and supervisory committee members. Like many CUs, Hudson Valley CU’s leaders hadn’t revisited their wish list in ages. (See Hudson Valley Credit Union's Call for Board Candidates Refresh for the CU’s “before” and “after” calls for candidates.) We looked to data to guide the way toward a new standard. The 2020 State of Credit Union Governance report found significant differences between what credit unions sought in their candidates and the skills and attributes they actually valued in the boardroom. And Hudson Valley CU was no different. When we surveyed the CU’s board, supervisory committee members and management, we found they had been prioritizing skills in financial literacy, professional services and operations. However, the perceived value of those skills in the boardroom was significantly lower than for human skills like being able to focus on the future, do critical thinking and be independent-minded. We recommended that the CU prioritize (in both its recruitment and nominations processes) what its leaders value most in the boardroom. In actuality, the shift was likely long overdue, as it is for most credit unions. Following an analysis of their survey data and focused work with both the volunteer and management leadership, Hudson Valley CU developed a new call for candidates that delineated specific skills, attributes and character traits that matched the credit union’s changing governance needs, culture and core values—in alignment with what board members actually value in the boardroom. (See sidebar, “Hudson Valley CU’s Call for Candidates Refresh.”) “I was so gratified to see the change in focus from fiduciary- to strategic-related skills for our new board members,” says President/CEO Mary Madden, CCE, a CUES member who has announced her retirement effective Jan. 2, 2023. “As we look to the future and the $10 billion threshold (by 2027), the management team will be looking to our board to ask the hard questions that need to be asked from a strategic point of view, while we’re overseeing the day-to-day operations. Certainly, board members need to continue to be responsive to their fiduciary duties, but strategically, there are a lot of critical, strategic decisions in front of us.” The Candidate Process Historically, Hudson Valley CU used traditional routes for board recruitment—issuing the call for candidates on its website and in member statements and posting it in its branches. The CU’s nominations subcommittee leveraged AVP/PR and Corporate Communications Lisa Morris to help get the word out in new ways. Morris placed ads on LinkedIn, sent word out to the area’s largest chambers of commerce, and conducted outreach through other specialty membership organizations and associations in the CU’s region. For the first time, board members took a more active role in recruiting. All told, Hudson Valley CU received 18 applications for three open seats for its board last year. In the end, new board members came from board and volunteer referrals and Morris’ outreach to the Professionals of Color Network Hudson Valley . Morris believes casting the net wide was a value-add. “Any additional outreach we do as a credit union—whether it’s marketing for a new product or issuing the call for candidates to and through a new association—means we’re reaching potential new members,” she says. A CEO once told Quantum Governance that his board was so concerned that he would “stack the deck” in his favor, he wasn’t even allowed to know how many applications his credit union received in response to the call for candidates. We took the opposite tack, recommending that Hudson Valley CU include Madden in the entire process. As a result, she participated as an ex-officio, non-voting member of the nominations subcommittee, lending her decades of expertise in interviewing, evaluating and vetting high-level professional candidates. “At first, we were all a bit skeptical about including Mary in the process,” said Julie Majak, the current chair of Hudson Valley CU’s nominations subcommittee. “But having her participate was an important, positive change. After we reminded ourselves that she had a voice—not a vote—we all quickly moved on to benefit greatly from our CEO’s expertise and insights. Her participation is now a given moving forward.” We also recommended the nominations subcommittee add a peer evaluation for any incumbent candidates, as well as psychometric testing in the form of the EverthingDISC Workplace Profile and expand interviews from 20 minutes to an hour. We also helped the committee develop strategic interview question sets to be used for all candidates to test the issues most important to the credit union. Importantly, the nominations subcommittee approached each interview with a new, elevated perspective of what was required and a clear understanding of what the board was looking for in new volunteers. We recommended Hudson Valley CU use a five-point scale for evaluating candidates based on the outcome of the assessment. Future board members should be: skilled enough to be board chair (even though it might never be right for them to be chair, see January '22 Good Governance article ); critical and strategic thinkers; independent-minded; consensus-builders; and of unimpeachable integrity. We also suggested the nominations subcommittee prioritize diverse candidates and individuals with previous board experience and expertise in the financial realm. The nominations subcommittee selected five of the 18 candidates to interview, ultimately nominating three candidates who were later elected to the board. The subcommittee also launched an associate board member program. (At cues.org/boardpolicies , see package 1). This enabled bringing in a strong fourth candidate as an associate director, creating the opportunity to increase the candidate’s general knowledge of CU governance over time, while benefitting immediately from the candidate’s attributes and expertise. The Onboarding Process Not content with improving only the nominations process, Hudson Valley CU’s leadership also focused on enhancing its onboarding program for new volunteers. A small task force comprising both board and staff was created and led by an expert in training from the CU’s HR department. The task force expanded the CU’s original, skeletal onboarding process into a robust program that includes a 15-plus hour, four-session orientation curriculum with homework assignments and between-session learning. The program also includes a variety of training modalities and sources, including online modules from CUES; in-person presentations from staff and board members; and written materials. Beyond the orientation curriculum, Hudson Valley CU has committed to at least a 12-month onboarding process that includes regular check-ins by the board chair, committee assignments and access to the CEO, and management representatives who can provide tools, answer questions and serve as subject matter experts to help new directors understand the nuances of the CU industry, the CU’s budget, executive compensation and the economy, plus learn how their strategic decisions apply to and impact operations and results. Hudson Valley CU eventually aims to have all its volunteers and supervisory committee members participate in the onboarding process. The Human Dimensions of the Process We would be remiss if we didn’t address the challenges that such a significant amount of change raised. Implementing this multi-phase process was a massive undertaking for Hudson Valley CU’s board, supervisory committee and nominations subcommittee, and it represented a gap-leaping progression in the leaders’ ability to meet members’ needs. (For more, read, “ Key Outcomes and Lessons Learned From a Board Renewal Effort ”.) Successful organizational change involves more than good processes and procedures. People are the pivotal element, and enabling them to integrate new ways of thinking about and doing things is often the most challenging task. The starting point for change is recognizing that it’s needed. Implicitly, there must have been reasons, acknowledged or not, why any action hadn’t come sooner. The reasons change is hard and the right ways to contend with oppositional forces are unique to each situation. Still, Hudson Valley CU’s journey was not uncommon. Its particulars aside, we hope—as does the CU’s leadership—their story will be helpful for others contemplating similar enhancements. Board composition did shift over time at Hudson Valley CU, so a stagnated boardroom cohort was not the main board renewal problem the credit union faced. Rather, the board had not empowered the previous nominations subcommittee to function as a strategically important committee—recruiting the best candidates, helping to refresh the strategic makeup of the board and revitalizing its vision. While today the nominations committee is viewed by the board as one of its most consequential committees, it had been for years reduced to a group of people who executed the simple task of managing the logistics of the nominations process, with little to no strategic input or impact to the overall makeup of the board. Another consequence of that legacy was a contingent that strongly believed that maintaining the status quo was in the CU’s best interest. In their view, the introduction of innovative tools and processes to enhance Hudson Valley CU’s culture and governance posed a threat to the long-held assumption that the nominations process needed to be completely independent from the board and even management. Although the board had signed off on the innovations, some members of the nominations subcommittee concluded that the changes would be detrimental. “Some members of the committee were uncomfortable with the amount of dramatic change the consultants were looking to implement so quickly,” says CUES member Misty Decker, chair of the governance and nominations committee. In such a situation, building trust and giving the naturally conservative individuals the courage to try are what’s needed more than anything else. The antidote to resistance and anxiety-driven risk aversion is assurance, not force. Our approach was to mobilize a small group of institutional leaders—the board chair, the CEO, and the governance and nominations committee chair—to join us in a conversation with the nominations subcommittee members. We acknowledged that the proposed systemic changes were indeed a substantial and understandably frightening departure from the past. We heard their concerns, validating rather than dismissing their impassioned drive to guard normed cultural traditions, and we invited them to question and reconsider the benefits to change. “We were ultimately successful,” Decker adds, “because we had established trust in Quantum Governance’s experience addressing board issues with other credit unions and in Dolus Advisors’ expertise in driving organizational culture change.” Of course, the realities of dealing with stakeholder pushback are rarely straightforward. Navigating opposition can get hot and messy. Agreeing to disagree, building or re-establishing trust, and defining workable pathways to compromise can be arduous. But there is no more important work. And this work is and has been a powerful reminder that high-performing boards are a combination of capabilities and practices coupled with human dynamics and culture. Each of these areas entails differently defined tools and solutions to enhance or repair as well as to strengthen and elevate. They also require a healthy dose of humility to accept—and even celebrate—that the changes we embrace are actually only a work in progress. Alexander Stein, Ph.D . , is founder of Dolus Advisors , a consultancy that helps leaders address psychologically complex organizational challenges. Previous Next

< Back Serving Members’ Best Interests Benefits From A Constructive Partnership Jennie Boden Aug 24, 2021 When directors, supervisory committee members and executives collaborate effectively, members benefit. I spent the better part of my career working in the nonprofit sector. I like to say that I’ve had every job from executive assistant to executive director. And I loved every minute. When you work for a nonprofit—any kind of nonprofit—you do it because you love it. You know, in the back of your mind somewhere, that you could make more money in the corporate sector, and sometimes kind and well-meaning family and friends even remind you of it. But you stay because you love it, and you feel committed to what you’re doing. I’ve found the same to be true for all the credit union staff that I’ve met, interviewed and worked with since I joined Quantum Governance more than seven years ago. While credit unions aren’t exactly like some of the charitable nonprofits where I worked, they surely are mission-driven, and as you know, it’s all about serving the members. Of course, one of the central roles and responsibilities of a credit union board member is to “carry out his or her duties as a director in good faith, in a manner such director reasonably believes to be in the best interests of the membership.” And we hear this from credit union board members all the time. Ask a credit union board member what his or her job is, and he or she will most often reply “to represent the best interests of the members.” One of my former colleagues used to say that was a board member’s response when he or she wasn’t sure what else to say—when the person wasn’t clear what the job really was. But I’m not quite so cynical. I do think that the roles and responsibilities of board members are changing, especially as credit unions continue to grow and the environment around them is becoming increasingly complex. But almost every board member I’ve ever met (and I’ve met a lot of them) really does seem to care about the credit union and is committed to doing what’s right for their members. The challenge, I believe, in this answer is that often board members believe they have the “corner on the market” in terms of representing the members’ best interests. What Does It Mean to Serve Members’ Best Interests Some years ago, Quantum Governance conducted a governance assessment for a large, multi-billion-dollar credit union. As a part of our assessment, we interviewed all the board members, supervisory committee members and senior managers. There seemed to be a perception among the board members that it was the board’s job to not only act “in the best interests of the membership” but almost to protect the membership from the staff. A member of senior management put it like this: “There’s a lack of trust. It’s not overt, so they [the board] won’t come out and say, ‘I don’t trust what you’re saying.’ There will be an attitude like what you’re saying is somehow colored for whatever reason. Like there’s another angle that we’re playing that benefits us and not the membership. As if we don’t care about the membership, too.” As if they “don’t care about the membership, too.” Of course, they do. A Constructive Partnership Serves Members’ Best Interests At Quantum Governance, we believe in the power of a constructive partnership between all three components of a credit union’s governing entities—the board, the supervisory or audit committee, and the senior managers. A constructive partnership puts a focus on effective collaboration, rather than control or even competition between the board and senior management. It actively fosters a leadership culture of trust that extends beyond even the credit union’s board and senior management to include the members of the supervisory or audit committee so that all three governing bodies are working together—collaboratively—to execute fiduciary oversight, craft strategy, offer mutual support and hold each other accountable—all toward the betterment of the credit union and in its members’ best interests. A constructive partnership recognizes that each of the three governing bodies has its own distinct roles and responsibilities. For example, of course the board and the board alone is responsible for setting the CEO’s salary and benefits, and we would never expect the board to wade into day-to-day operations or members of senior management to oversee the external audit that is put in place as a check and balance on their work. But just because the National Credit Union Administration has explicitly included the notion of protecting the members’ interests in the list of board members’ roles and responsibilities, don’t assume that everyone else either volunteering or working at the credit union isn’t just as committed to that very sacred duty, too—from the members of your supervisory or audit committee to your CEO and other members of senior management to the dedicated staff who manage your call center. Otherwise, especially in today’s economy, they’d likely be working elsewhere. Previous Next

< Back Advice from My Hero Michael Daigneault Mar 26, 2019 Six key responsibilities of every board, gleaned from my conversation with world-renowned expert Ram Charan. There’s nothing like meeting your hero. For some, that might equate to a football player or a musician or maybe a politician — a well-known celebrity type, whose mere physical presence is immediately recognized by all. For a governance geek like me, heroes are fewer and farther in between. But they do exist and when they do, they rise like giants. Thanks to my good friends at CUES, I met my hero a few months ago on the eve of the 2019 CUES Symposium in Nassau, Bahamas. And because they are, indeed, good friends, I was lucky enough to be afforded some private time with Ram Charan, the world’s leading expert in corporate governance. Along with some members of my team, I explored some of the most pressing concerns of the day with him — challenges that perplex even the most skilled and tenured credit union board members and CEOs. I've got the picture to prove it! I imagine I’ll be mining the notes from our conversation for quite a time to come, and I look forward to bringing you the fruits of those labors in future blogs. For now, I am pleased to share with you six key responsibilities central for every board outlined by Ram as he spoke to the board chairs and CEOs assembled at the Symposium: Ensure effective board composition. This is one of your board’s most fundamental roles and responsibilities. Board renewal at its core is also one of the most difficult. The State of Credit Union Governance, 2018, published by Quantum Governance and CUES found that a full 46% of respondents described their effectiveness in finding, recruiting and nominating new talent to their board as only adequate or less than adequate. Do you have the right directors and the right officers for your board? Don’t just hire your CEO, coach him or her for success, too. If you are lucky enough to have the right CEO, take care not to lose him or her. Ensure that you have a strong relationship with your CEO, as well as a succession plan in place on day one. Develop the right strategy to lead you into the future. Here it’s important to work in a full, constructive partnership with your credit union’s CEO and management team. Focus on the vision, mission, culture, strategic goals, objectives and metrics, and then let your CEO and his/her management team worry about operational work plans that support effective implementation. Keep an eye toward the horizon. Are you clear that you see things today will build the future tomorrow? Look for opportunities; many will fail but many will grow. The board adds value in asking questions of opportunity and in sowing the seeds. Stay current on important trends. Allocate enough time at the board level to learn about industry trends so that you can contribute to the strategy effectively. Study FinTech, digital corporations, consumer trends and more — anything that will give your credit union an edge over its competitors. Monitor the credit union’s performance. Rely on your CEO and his/her management team to deliver the data you need to monitor performance. Ensure that you are asking questions that “trust but verify” the credit union’s position and progress. Be sure to rely also on empirical data, and finally, ask yourselves these questions. In the last quarter: What three things: 1) Have we done very well; 2) Have we not done well; and 3) Will we do differently? Previous Next

Services We are a team of experts in the fields of governance and strategy designed to help nonprofits, credit unions, associations and foundations realize the full potential of their missions. Our team provides assessment, consulting, planning, facilitation and implementation services to cooperative and nonprofit organizations of all sizes. Quantum Governance is an L3C, a low-profit, limited-liability service organization dedicated to the public good. Founded over a decade ago, our mission is to partner with mission-driven leaders to enhance governance and strategy effectiveness for exceptional outcomes. What We Offer Governance Governance Assessment Leadership Culture Assessment CEO Evaluation Peer-to-Peer Evaluations Director Skills Inventory Board Succession Planning and more! Learn More Small Credit Unions The Governance Check-Up Governance Skill Building Governance Evolution Learn More Strategic Planning Strategic Planning Facilitation Defining Your Vision & Mission Identifying Strategic Goals and more! Learn More Additional Services Bylaw & Policy Development Keynote Presentations and more! Learn More Why Choose Quantum Governance? We have an exceptional reputation among credit unions, nonprofits, associations, foundations and leagues. We've developed proprietary, best-in-class assessment tools , robust and insightful data and unparalleled deliverables from our contemporary Policy Library to our research and reports. We have experience working with hundreds of credit unions, nonprofits, associations, foundations and leagues from the very small to those with more than $33 billion in assets domestically and internationally. We are constructive partners and collaborators enthusiastically learning about your organization to efficiently deliver both short-term results and long-term evolution. We are lifelong learners and curious researchers dedicated to sharing our knowledge and expertise to strengthen the credit union industry as a whole through The State of Credit Union Governance report series. Let's talk about your organization's needs. Contact Us

< Back Coming Together for the Common Good Michael Daigneault Dec 1, 2019 Consider multiple perspectives and build consensus— not unanimity—to ensure your CU is making good decisions. If you Google “decision-making,” we think you’ll be amazed at what comes up in the search results: “The Top 5 Decision-Making Models You Need to Know,” “Models of Decision-Making: Rational, Administrative and Retrospective Decision-Making Models,” the “Most Popular Decision-Making Models,” and even “Decision-Making Models of Decision-Making.” And the list goes on. Wouldn’t it be wonderful if there was a simple, no-fuss, one-size-fits-all model that we as leaders of our credit unions could apply—be it in the boardroom or in the halls of our CUs’ administrative offices—that could assure us that we were making the right decisions? Wouldn’t it be nice to know we’re making the best decisions that always put our members’ interests first while delivering the most effective outcomes for our credit unions? Unfortunately, it’s not that easy. A former colleague from what was then the Ethics Resource Center, a Washington, D.C., think tank and consultancy, used to say that decisions are the hardest when there are two competing values at play. And we think he’s right. It’s easy to make good decisions when the options are black and white, good and bad, positive and negative. Should you merge with the larger, more solvent credit union when yours is hours away from shutting its doors? Is the core conversion a go when you have the funds to switch and your current system is on its last legs? Should you promote the current VP/finance to CFO when she’s fully capable, has the requisite skills, the backing of the board, a great relationship with you (the CEO) and the trust of senior management? It’s easy to see how you can quickly get to “yes” on these questions and many others. But when you and your colleagues are in the boardroom—or managing your credit union from the C-suite—how do you make decisions when the questions are not as clear? What do you do when there are two important, competing values at play?How does a credit union decide between “serving member interests” and “ensuring the financial safety and soundness of the credit union?” How do you balance the credit union’s ongoing health and meaningful outreach in the community?Perhaps the most important job of board members and senior management alike is to ask questions that lead to not only expeditious decision-making but the right decisions. Perhaps the most important job of board members and senior management alike is to ask questions that lead to not only expeditious decision-making but the right decisions. Commit to Having the Hard Conversation First and foremost, begin by committing to having the hard conversations that you need to have in both the boardroom and the C-suite. While researching for the soon-to-be-released 2020 State of Credit Union Governance report, we found that more than a third of respondents said their boards do only an adequate or less-than-adequate job of asking the hard questions that need to be asked. And yet, the same study found that boards report overwhelmingly that they are “making quality decisions.” How can this be? Fundamental to effective decision-making is ensuring that, as credit union leaders, you are upping your game in terms of asking hard questions. What do we mean by “hard questions?” Perhaps the most important job of board members and senior management alike is to ask questions that lead to not only expeditious decision-making but the right decisions for the credit union and ultimately for members. If you fail to do so, you’re not living up to your role and responsibility—either as a volunteer or as a paid leader of your credit union. Being open and inviting multiple perspectives into difficult conversations is critical to decision-making. It’s vital to ensure that every voice in the room is heard. Remember, that your credit union is a nonprofit governed by a board of directors, not a privately owned company led by a chairman/CEO. By design, the strength of a cooperative leadership structure comes from the chorus of voices that governs it—even though at times it may be cumbersome. (Remember cooperative principle No. 2, democratic member control? Read about it .) Be Conscious of Unconscious Thought Daniel Kahneman is an Israeli-American psychologist and economist who won a Nobel prize for his work on judgment and decision-making, much of it outlined in his book Thinking, Fast and Slow. In the book, Kahneman suggests that for the most part, individuals spend about 90% of their time “thinking fast,” or motivated by subconscious or unconscious thought, and only 10% of their time “thinking slow,” or motivated by rational or conscious thought. What does this have to do with the decisions coming before your credit union’s board and senior management? Well, everything. It means that everyone in the boardroom or in the C-suite is coming to the table with their own biases, and they are largely subconscious. And these decision-makers are, believe it or not, largely driven by those biases. Remember that discussion that you had about moving away from brick and mortar? Or the presentation that your CEO and her team made to the board on that potential merger? What about the discussions you’ve been having in executive session about the CEO’s variable pay? All of these discussions and more are being seen through different lenses by various board members and senior leaders. A board member who believes in high-touch customer service and relishes the personal connection with the tellers in his local branch will forever believe that brick and mortar is the way to go. Legacy board members may be deeply concerned about what a merger might mean for their own board positions. And finally, the executive director at the homeless shelter who serves on your board will likely find the CEO’s pay enviable and maybe even too generous, regardless of performance. Remember, these perspectives—even if they are unconscious—are always at play, and they have an impact on each and every meeting and in each and every conversation, whether we want to believe it or not. Be Clear About What Consensus Means … and What It Doesn’t Another critical component to effective decision-making is to understand the concept of consensus as it is designed to operate in the credit union boardroom. The reality is that a significant number of credit union leaders still believe that consensus exists only when everyone is in complete agreement—what some would term “absolute consensus” or simply “unanimity.” Sure, it feels great when we can all agree with a motion or proposal. And yes, sometimes a thoughtful compromise is the best course. But absolute consensus or unanimity—while desirable or comforting at times—is not necessary to make good decisions in the boardroom. Indeed, there are even times when insistence on unanimity may cause a proposal or initiative to become a mere shell of what it once was. If meaningful changes are made just to satisfy one or two hold-out votes, an initiative may become so modified or watered-down that it may no longer add the significant value that the original proposal offered. What, then, is an appropriate degree of consensus in the boardroom? Merriam-Webster defines it as “a general agreement about something.” Note the word “general.” It involves coming to an agreement to support a decision that is in the best interest of the whole. The process of coming to consensus is designed to afford everyone an opportunity to share their thoughts and opinions about the subject at hand. Yep, there it is again—genuinely hearing everyone’s voice. Consensus in the boardroom, therefore, does not require unanimity. What it does require is you and your colleagues asking the hard questions, challenging your values, raising your subconscious thinking to the conscious level and coming to a decision that is in the best interest of the whole. Not everyone may agree when you come to a consensus, but if you have a quorum, a majority of those voting on the matter are generally considered a consensus on regular matters coming before the board. (Note that the Federal Credit Union Bylaws , published by the National Credit Union Administration include only a simple majority—50% plus one voting member for a motion to pass.) And remember, once the final vote is taken on a matter, the decision has been made. The entire board is now expected to speak with one voice … even if you were one of the members voting against the motion. Be Transparent About Your Decision-Making We end where we began, by sharing a lesson from our days at the Ethics Resource Center. We had the good fortune to work with a select group of researchers—ethics officers at Fortune 500 companies, consultants and practitioners from around the nation—in a program we developed called the ERC Fellows Program. Together, we took on leading questions and issues in the field of business ethics. One such question was, “What makes for an ethical leader?” Surprisingly enough, our research led us back to decision-making. We found that regardless of how ethical the leader was as an individual, in order to be seen as an ethical leader, the individual’s decision-making process needed to be seen as one that had integrity. Our research with the Ethics Resource Center offered four key recommendations on the notion of ethical decision-making and ethical leadership: When announcing critical decisions, be certain to acknowledge the ethical issues (competing values or even subconscious thinking) inherent in the situation being addressed and how the proposed solution (the decision) addresses those ethical issues. When discussing the ethics of key decisions, publicly acknowledge the difficulty of resolving such dilemmas and challenges and your awareness of the fact that ethical people could reasonably disagree on how best to resolve the dilemma. (Remember, you and your colleagues will prioritize different values, and this is where subconscious thinking will emerge!) Insist that your direct reports (or for boards, the CEO and senior management) talk you through the ethics of their decisions for review and/or approval at the same level of detail they discuss other business considerations. (But do so without micromanaging the CEO/senior management!) Ensure that leaders understand their impact on the organization’s culture and how their attention or inattention to the ethical dimension of their choices impacts the organization’s culture. Given the unique role of credit union leaders as stewards of their members’ funds, we believe the role of the credit union leader—be they volunteer or paid—as effective decision-makers is paramount. Have the courage to ask the hard questions. Engage all of the voices in your boardrooms, volunteers and senior management alike. Be conscious of both rational and subconscious thought. Know what consensus really means and what it doesn’t. And be clear about the decisions you make—all for the betterment of your members. 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< Back Into the COVID-19 Fire to Make Things Better for Members and Staff Caitlin Hatch Apr 3, 2020 A strong alignment of the CEO, senior leaders and the board enabled early, effective action. We were talking with one of our clients, F&A Federal Credit Union in Monterrey Park California, the other day and were struck by their early, decisive actions in the face of the COVID-19 pandemic. (F&A was chartered in 1936 to provide financial services to employees of the Los Angeles County Forestry, Fire and Agricultural Departments.) We soon learned that the decisiveness in responsive to the coronavirus situation was the result of a combination of a well-thought out pandemic response plan and the courage to act when some might have argued that it was too early to do so. F&A FCU’s actions were made possible by a strong governance culture of trust between the credit union’s board and CEO Tim Green and his management team, all of which enabled Tim to make some tough, early calls. Tim told us that by late January he was concerned enough about the likelihood that the virus would impact the United States that he decided to implement the credit union’s pandemic response plan. As Melia Keller, VP/marketing notes, “Tim a visionary on this … the need to prepare for a quarantine. It was really hard to fathom. We ordered laptops and set them up to work remotely, came up with a communication plan, prepared for kids being at home, employees working remotely and identified people of a higher risk and started them working from home right away.” And, the board was supportive of it all. In February, F&A FCU developed and prepared call center scripts and emergency member communications, Melia told us, “We had a communication plan in place, with scripting for outbound messaging. It all emphasized caring for the member. That has really differentiated us. We approached everything from a perspective of compassion and humanity.” Lastly, and perhaps most importantly, the credit union focused on ways to make things better for its members and its employees. It developed programs to meet the members’ needs, including loan deferment through enhanced skip a pay, the waiving of loan late fees, and a short-term 0% APR loan of $5,000 for any member impacted by COVID-19—regardless of credit score and knowing some loans may not be repaid. Employees are empowered to help where they can, and for one desperate member, this meant F&A FCU even provided a couple of rolls of toilet paper at the drive-through window. For employees, Tim initiated a short-term 30% raise and offered 40 additional hours of paid time off to use as needed. For employees working in the branches (one is drive-through only, the other has limited teller hours), the credit union caters lunch, so they don’t have to go out. They even gave each staff member two rolls of that precious toilet paper from the credit union’s supplies! According to Tim, the goal was similar to the goal of its firefighter members: to make things better. “Everything was pre-planned, except the toilet paper and the decision on the 30% temporary pay adjustment,” he said. Tim felt confident that he could make that command decision and that the board would support it—and indeed it has. Tim noted to us that COVID-19 “has crystalized our values without us having to talk about it. We are the ones who are there for you.” It struck us that the F&A FCU leadership—board and staff – were running “into the fire” of the COVID-19 pandemic, ready and able to help its members, just as its own firefighter members are ready, willing and able those in need. The CU’s preparation, shared dedication to service and, perhaps most importantly, culture of trust (even though Tim is a relatively new CEO) have been invaluable for F&A FCU members. Caitlin Hatch previously served as a senior consultant with Quantum Governance and has worked with credit unions for the past eight years, focusing on governance and strategic planning. Prior to that, she served for 25 years as general counsel and corporate secretary for the largest anthracite coal company in the United States. Previous Next

< Back Make Your Voice Heard Jennie Boden Nov 17, 2023 Speaking up can be scary, especially if you’re the only woman in the room, but it’s important to call attention to problematic behavior in the workplace. I recently observed credit union CEO introduce a new, young, female staff member to a predominantly male board of directors. The male board members lined up to welcome her—a new staff member they hardly knew—with a hug. In my follow-up conversation with the board chair and CEO, I was amazed to find that the male board members, as well as those in leadership, didn’t seem to realize there was anything wrong with this interaction and how they were collectively objectifying the new staff member. Though we have undoubtedly made significant improvements in moving towards gender equity, power differentials between men and women—particularly in governance and leadership spaces—are still painfully real. I see this regularly in my interactions with credit union boards and leadership. This spring, I facilitated a session with another board where there was only one female director. This female board member, who also served as the chair of the governance committee, absorbed all the tasks being delegated to her by her fellow board members, all of whom were men. No one else was taking ownership of any of the to-dos coming out of our working session. Again, I talked with the board chair and CEO about my concerns in a follow-up session. These two situations are teaching moments for women in traditionally male-dominated spaces. While the credit union sector has taken steps to diversify its leadership, most board members in our field are still white men. Many of them are older as well and unaccustomed to reflecting on how their actions and habits resonate in spaces with women in leadership roles. Gender bias, or gender-informed behavior, can happen under even the most kind, thoughtful, open, progressive leadership. It can happen with male and female leaders. It can happen even if you have eliminated traditional, gendered power dynamics in your personal relationships. I’ve also worked with male leaders who are willing to reflect on how women are—or are not—set up for success as directors on their board or as members of their staff. In meetings, they’ve reflected on their role as leaders and how they could do better to eliminate power differentials in these spaces. Unfortunately, these conversations often stay just that: conversations. When we face these types of scenarios, it can be difficult to speak up. Sometimes the best way to address the problem is with a follow-up conversation. It’s wonderful when we can speak up in the moment, but we women often lose our voices even when we know something isn’t right and when we know we should say something. We’re afraid of being seen unfavorably by male-dominated leadership, of being passed up for opportunities, of being considered “difficult.” I know these challenges very well, and such fears are not unfounded. As Francesca Gino writes in Harvard Business Review , “Speaking up can also result in negative performance evaluation, undesirable job assignments, or even termination. Most people are aware of these potential costs; as a result, most stay quiet about bias, injustice, and mistreatment.” However, psychologist Catherine Sanderson, writing for Greater Good Magazine , deftly explains why inaction is both contagious and dangerous. She says: “When facing an ambiguous situation, our natural tendency is to look to others to figure out what’s going on. But here’s the problem: If each person is looking to the people around them to act, and no one wants to risk feeling foolish and embarrassed, the problematic comment or behavior may be left unchallenged.” While I know it can be challenging to make your voice heard in these situations, take a moment to find your power. This power can be in yourself—in speaking up—or even in just interrupting the moment by saying “Hmmm,” while you consider what to say next. It can be in allies you have in the room, who can help you hold others accountable. That power can manifest in so many different ways. You can gracefully redirect tasks that are being piled on a female colleague to others in the room who can take them on. You can stand by a junior colleague who has become the target for inappropriate behavior to serve as a buffer and demonstrate solidarity. You can gracefully share that specific behaviors are inappropriate. And, as was mentioned earlier, if action isn’t possible in the moment, small gestures—even after the fact—can go a long way. Changing workplace culture is hard work. But you can be the change you want to see. Find your voice and speak up! Previous Next

< Back Who Needs A Shadow Board? Jennie Boden Jun 25, 2024 Add younger employees and members directly to your C-suite and board to benefit from their skills and knowledge today. I read with interest a Fortune article entitled “ Companies are turning to ‘Shadow Boards’ to keep in touch with the real world .” The author, Lila MacLellan, defines a shadow board as “a committee of typically younger employees who come together within a firm to advise the management team on key topics, such as company culture, product marketing, trends in technology, and sustainability efforts.” She continues, noting “They are not an official board, of course, but their views often supplement those of experienced, much older corporate directors and C-suite leaders. “These advisory groups give some businesses insight into their customers’ tastes and passions.” MacLellan reported that companies like The Body Shop have embraced the trend, and her colleague, Fortune ’s Orianna Rosa Royle, recently found that The Body Shop developed its shadow board, with its members aged 30 and under, “when it became aware of the gap between the company’s youngest workers and its leadership team and directors.” After reading the article, a colleague of mine posed a logical question: “Would shadow boards be a good strategy for credit union?” The question made sense. After all, our own 2023 State of Credit Union Governance recently found that 89% of credit union board members are aged 51 or older, and the average age of most credit union members in North America is 53. But here’s the thing. Creating another board isn’t a ready-made solution to the problems of an aging board and membership. In my mind, it’s simply a workaround. In our work, we’ve found that most credit unions struggle managing the governing boards that they already have. Many credit union boards have failed to evolve their governing roles and responsibilities even as their credit unions have grown around them—from financial institutions with assets of $250 million to those with well over $1 billion; some face challenges with that ever-elusive balance of authority between the board and the CEO and still others are still lingering “in the weeds” too much, not finding their stride in being strategic thinkers. Marie Kondo has ushered in the era of “tidying up,” not “cluttering up.” You must attend to that which you have, and like I said, too many governing boards are already flying under the radar, receiving too little attention. Why add another? Instead, add those younger employees and members directly into your C-suite and onto your governing boards— of course, given that they meet the requisite qualifications . Don’t keep them waiting in the wings until they reach some magical age where you deem them acceptable for full service. Benefit from their skills and knowledge now. A Gen Z member of our team recently sat in on a webinar proclaiming to share insights into the mind of the Gen Z credit union member. It was taught by two individuals in their 50s. In. Their. 50s. To be fair, our team member said they got some things right, but they also got a lot of things wrong. After, we asked her to present to our team what she thought that members of her generation were looking for from their financial institutions. You know what she said? Hope. To learn more about what Gen Zers really think, read this May blog from Quantum Governance’s governance administrator, Lauren Paradise. Previous Next

< Back Finding Balance in Board Meetings Gisele Manole Sep 13, 2024 Efficiency vs. Engagement In a recent conversation with a credit union board member, she expressed frustration over the increasingly automated and predictable nature of their monthly board meetings. This shift towards efficiency and expediency has left her questioning the necessity of her presence at all. This sentiment is a stark contrast to the past, where the primary complaint was the lack of focus and excessively long meetings. The Shift in Board Meeting Dynamics For many years, credit union board meetings were often critiqued for being too operational and detailed, often described as “chasing too many rabbits and catching none.” These meetings were lengthy and lacked substantive discussion. However, it seems that in the quest for efficiency, for some boards, the pendulum may have swung too far in the opposite direction, sacrificing curiosity and meaningful dialogue for expediency. Striking the Right Balance As with many things, the ideal approach lies somewhere in the middle. While asking questions is a sign of engagement, asking the wrong questions can indicate a lack of understanding of a director’s role. My colleague, Paul Dionne, recently wrote about achieving balanced, strategic-level dialogue while efficiently meeting fiduciary, legal, and regulatory obligations. The Traditional Role of Credit Union Board Meetings Historically, credit union board meetings have emphasized the formal role of the board. A routine agenda was often used to move from one report or policy issue to another. Board members were present to receive information, provide fiduciary oversight and make quick decisions when necessary. Many decisions were made immediately or at the beginning of the meeting, with strategic questions and generative dialogue often seen as obstacles to their progress. The Need for Generative Dialogue To foster a more engaging and productive board meeting, it’s essential to incorporate generative dialogue. This means creating space for strategic questions and discussions that go beyond routine reports and decisions. Encouraging curiosity and deeper engagement through thoughtful questions can lead to more meaningful outcomes and a stronger connection to the credit union’s mission. Perhaps not all questions need to be answered right away. Perhaps the best questions linger and fuel conversations for many meetings to come. If the question has a finite answer like yes or no, it’s likely operational in nature. What are some other helpful cues to guide strategic, board-level questions? Operational Indicators: Is it about the past or present? Is it about day-to-day operations? Is it about how you should get there? Strategic Indicators: Is it future-oriented? Is it central to your vision, mission or strategic goals? Is it about where you should go? Finding the right balance between efficiency and engagement in board meetings is crucial. While it’s important to maintain focus and avoid operational detail, it’s equally important to encourage strategic thinking and meaningful dialogue. Previous Next

< Back Effective Communications in the Board Room Jennie Boden Feb 1, 2019 Key Findings for Communication A great number of the governance challenges that we come across in the work that our firm undertakes with credit unions can be boiled down to matters of communications. Are your board members crossing over into day-to-day operations? Well…have their roles and responsibilities been clearly defined, updated and effectively communicated to them? Are there two or three (or even just one) members of your Board who are coming to meetings ill-prepared each and every month? It’s probably time for your Board or Governance Committee Chair to have a heart-to-heart, one-on-one conversation that may be long over-due. Is the relationship between your Board and CEO riddled with micromanagement, executive sessions and a lack of trust? It’s possible that you stopped having authentic, open dialogue far too long ago. After years of surveying credit union Board members, supervisory committee members, CEOs and senior staff members, Quantum Governance, along with CUES, recently published T he State of Credit Union Governance 2018: Five Data-Driven Recommendations for Future Success (State of CU Governance). There were three key findings relative to the need for more open, trusting communications that both surprised and troubled us. We encourage you to take notice of them and discuss these key findings with your board. If your credit union is struggling with any of these issues, it might be time to polish your own communications skills – individually and as a group. Key Finding #1 : More than 1/3 of the respondents that we surveyed report that their board does only an adequate or less than adequate job of asking the hard questions that need to be asked . Key Finding #2 : Thirty-nine percent (39%) of respondents reported that their board is only adequate or less than adequate at holding each other accountable . Key Finding #3 : And only 25% of CEOs and 27% of senior staff reported that their boards are very effective at building a leadership culture of trust – compared to 53% of supervisory committee members and 44% of board members. So, what’s happening at all of these credit unions? We were recently working with a credit union that received what we would term “Below Average” scores on survey questions regarding “accountability” and “asking the hard questions.” ‘Where do we begin,’ they asked. Luckily for them, their score on the “Trust” question was particularly high — a good place from which to build. They were quick to say that they all got along and worked well together – maybe too well together, perhaps? How many of your board votes are unanimous? Are your Board members held accountable when it’s appropriate? And, how many hard questions are you asking in your board meetings? The mark of a good board is not unanimity or harmony 100 percent of the time. Your job as a board member is to ask good, hard questions. To trust but verify. In a respectful and professional manner. All toward the good of the credit union. Be authentic. Be direct. Be open. Keep your promises. Keeping promises builds trust, and you’ll need to rely on strong relationships of trust while you’re holding each other accountable in the boardroom. Speaking of accountability: hold each other accountable as board members. Ask the hard questions that need to be asked. It’s among your most fundamental roles as board members. Previous Next

< Back Are Women Better Leaders? Jennie Boden Sep 24, 2021 They are when they act with humility, self-awareness, self-control, moral sensitivity and kindness. I just finished an interview with the female CEO of a fairly large credit union. I love conducting interviews. It’s my favorite part of my job, and luckily, I get to conduct a lot of them. As president of consulting services at Quantum Governance , I’ve probably interviewed thousands of credit union board members, supervisory and audit committee members, CEOs and members of senior management. And each time, I learn a lot. During this interview, the CEO was talking about adding her opinion in the boardroom on a sensitive topic. She stopped mid-sentence and stared off into space for a minute. (We were, of course, on Zoom.) I pushed her just a bit, inviting her return: “What are you thinking?” I asked. “I’m wondering how much I can say, how much I should say,” she replied. “What’s the right balance for me to share in the boardroom?” I paused before I spoke. “I can’t imagine a male CEO ever pausing, even for a minute, to ask himself that important question,” I said. And I do think it’s an important question. There’s a lot of data out there that suggests that women are currently better leaders than men. For example, this article in The Washington Post reported that countries led by women “suffered far lower death rates” than those led by men during the first wave of COVID-19. A study by Pew Research Center found that while most Americans find few differences between women and men in terms of leadership, women are perceived as more compassionate, empathetic leaders. A recent Forbes article reported on Gallup data that suggests that “in 1953, 66% of Americans preferred a male boss—today the figure is 23%.” The author of the Forbes article, Tomas Chamorro-Premuzic, asks the million-dollar question: 'If women have more potential for leadership, then why are they still the minority group among leaders?' - Jennie Boden via X (formerly Twitter) That same Forbes article also cited studies demonstrating that among the central qualities that “make leaders more effective, women tend to outperform men. For example, humility, self-awareness, self-control, moral sensitivity, social skills, emotional intelligence, kindness, a prosocial and moral orientation are all more likely to be found in women than men.” And that’s what the CEO I was interviewing was demonstrating as she paused and considered her next steps: skills that make leaders more effective, such as humility, self-awareness, self-control, moral sensitivity, social skills, emotional intelligence. Yet women often don’t get much credit for applying their winning leadership characteristics in the boardroom or in executive roles. The author of the Forbes article, Tomas Chamorro-Premuzic, asks the million-dollar question: “If women have more potential for leadership, then why are they still the minority group among leaders?” Charmorro-Premuzic answers his own question by saying that employment choices are made more based on “ style rather than substance , so we pick individuals for leadership on the basis of their confidence rather than competence, charisma rather than humility, and narcissism rather than integrity. … The typical leader is not known for their humility or competence, but arrogance and incompetence.” Now, clearly, this isn’t always true. Some boards value humility more than charisma when recruiting new directors or hiring a CEO. And I’ve met many male CEOs and C-suite executives (within the credit union community and outside of it) who fully embody substance over style. I’m lucky to say that I work for one. And of course, men, too, can demonstrate self-awareness, self-control, emotional intelligence and all of the rest. Yet female leaders with substance, humility and competence still have a harder road to top roles. Chamorro-Premuzic suggests that this has to do with maintaining the status quo. I think he’s right. But even if it’s just a little bit true—this maintenance of the status quo, we all need to work together to shift this paradigm and begin to value even more substance over style and humility more than charisma. -Jennie Boden, via X (formerly Twitter) Fortunately, some significant inroads are being made in the credit union community. CUNA recently reported that 52% of credit union CEOs are female, compared to only 3% of bank CEOs, 5% of top leaders in commercial banks and 6% of chief execs in Fortune 500 companies. And having a substantial representation of women in the top job is not just common among the smallest credit unions anymore: At credit unions with between $1 and $3 billion in assets, more than 14% of the CEOs are female. Great. Good for us. Truly, that’s good for our community. But even if it’s just a little bit true—this maintenance of the status quo—we all need to work together to shift this paradigm and begin to value even more substance over style and humility more than charisma. Because we want our credit unions—as they pursue their mission to be people helping people—to be led by the best possible leaders. Previous Next

< Back The Playground Bully Grows Up Jennie Boden Feb 18, 2022 Who are the workplace bullies, and what can we do about them? I’ve been bullied three times in my life, and as anyone who has ever been bullied can tell you, that’s about three times too many. Luckily for me, each of these bullies entered my life when I was adult. They were professionals, on-the-job bullies. And the last one did the damage just recently. I don’t do well with bullies – at least not when they’re coming after me. I don’t know why, but I just don’t. When my kids are being bullied, watch out. Boy, can my mama bear roar. And some time ago, Quantum Governance had to speak truth to power – lending voice to a good number of scared employees who were being bullied by their CEO. Terribly so. One employee told me, “Everyone’s constantly afraid they’re going to be fired. He walks around here saying, ‘Let’s see, who will I fire today?’” I didn’t hesitate for a moment then. I knew what was right, and so did Quantum’s CEO. It wasn’t news that our client, the board, wanted to hear, much less news that they were expecting. But I’m proud to say that from the chair on down, they reacted with speed and integrity. Heidi Lynn Kurter, in her July 2019 Forbes article entitled “ Workplace Bullying: Four Steps to Overcome It and Fight Back ,” writes that “Isolation, intimidation and threats are just a few tactics bullies use to strip someone of their power and identity. The reasons could be as simple as feeling threatened by someone’s success, personality or being insecure with themselves as a whole…Research shows workplace bullying not only impacts one’s happiness but injures their health, productivity and self-confidence leaving victims feeling stuck and powerless.” Stuck and powerless. Yes. I’ve felt that. We all deserve to be treated with respect. If your employees wouldn't have faith in how you would respond to a report of bullying within your ranks, you've got some work to do. -Jennie Boden, via X (formerly Twitter) We all know what bullying is when it happens to our children or on the playground, and we’ve certainly all heard the horrible stories about cyberbullying. But what is workplace bullying? The Workplace Bullying Institute defines it as “repeated, health-harming mistreatment by one or more employees of an employee: abusive conduct that takes the form of verbal abuse; or behaviors perceived as threatening, intimidating, or humiliating; work sabotage; or in some combination of the above.” The Institute reports that 30% of all adult Americans have been bullied at work. More than 48.6 million of us have been bullied on the job – but a total of 76.3 million workers (or 49% of all American) have been affected by workplace bullying. That means those workers have either been bullied or witnesses to it, which has its own impact, too. More than two-thirds (67%) of the bullies in our workplaces are men and 33% are women, and same-gender bullying accounts for 61% of it all, according to statistics cited by the Institute. Who Are the Workplace Bullies? So, who’s doing all this bullying anyway? I can tell you from our experience at Quantum Governance, and from my own, it’s not just employees who are the culprits. I was bullied by my board chair when I was serving as a chief staff officer, and I’ve seen other board officers and board members – yes, in the credit union community – bully their CEOs and senior staff. It happens. One member of a credit union’s senior staff told me, “When mistakes happen, it feels like the Board really turns the screws on our CEO, even if there are legitimate reasons behind the mistakes.” I’ve even heard about board members bullying other board members. In an interview once, a board member confessed to me, “I feel like I have a target on my back – especially in board meetings.” And recently, someone sent me a series of emails that I found to be “threatening” and “intimidating.” And when the person called me a “nasty woman,” I think, as most women can attest, those words were meant to humiliate me. Luckily for me, we don’t work for the same organization. Unfortunately, workplace bullying may be getting worse. While 6% of respondents to the Institute’s 2021 Workplace Bullying Survey reported that COVID-19 actually decreased harmful mistreatment between workers, a full 25% said that it has increased, and 17% said that it has remained the same: mistreatment was an issue before the pandemic began, and it remains an issue today. Anti-Bullying Action So, what do we do? What am I going to do? I️n her Forbes articles, Kurter shared four helpful steps worth repeating here: Address The Situation Head-On. Kurter notes that while confronting the bully can be intimidating, especially if it’s the board chair or your supervisor, you should still try. Don’t seek revenge or “stoop to their level.” Be clear that they are acting inappropriately and treating you in an unacceptable manner. “As uncomfortable as it may be, practicing courage will show the bully you’re not as easy as a target as they initially thought.” Confide In a Confidant. Find someone trustworthy that you can talk to – someone who will support you.Don’t hold all your feelings inside and isolate yourself. Be sure that you are attending to both your physical and mental health needs. Document Every Detail, Big and Small. If you’re going to report the bullying – either to HR or to your boss, even if your boss is the CEO or the board chair, you’re going to need the facts. Document all the incidents with the date and time, and keep copies of any correspondence. Stick To Facts and Report It Higher. Try to be calm when you are presenting the facts. And if you need to, go higher. And higher and higher. As Dr. Alexander Stein, Founder of Dolus Advisors, said to me this week, “Bullies only remain bullies because most people don’t report them.” And frankly, why would they? The Institute’s study found that employers’ responses to bullying aren’t typically great. In fact, they’re pretty bad. Between 60% – 63% of the survey respondents said their employers’ responses were negative (Encourage It; Defend It; Rationalize It; Deny It; or Discount It) versus the 37% – 40% of the respondents who said that their employers’ responses were positive (Acknowledge It; Eliminate It and Condemn It.) The bottom-line is that we all deserve to be treated with respect. If your employees wouldn’t have faith in how you would respond to a report of bullying within your ranks, then you’ve got some work to do. And if you’re among the 4% of workers or leaders that are doing the bullying, then knock it off. You know better. Previous Next