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Governance Services We offer a variety of ways to assess your governance employing a combination of the following methodologies: proprietary online survey, document review, interviews with members of your board, supervisory/audit committee, and executive leadership. Additionally, focus groups, meeting observations, member surveys and environmental scans may be added. Governance assessments are scaled to meet your organization’s needs. We can deliver the results of your assessment via an expertly facilitated retreat or a series of in-person or virtual workshops. Deliverables may include a report, best practices tailored to your organization, and a governance action plan. Additional governance services include: credit union industry benchmarking, year-to-year analysis for returning clients, developing a roadmap for growth and pre-merger assessment. Additional Governance Assessment Tools Leadership Culture Assessment & Policy Development CEO Evaluation Peer-to-Peer Evaluations Director Skills Inventory & Director Development Planning CEO Succession Plan Assessment & Development Supervisory/Audit Committee & Other Committee Assessments Board Succession: Assessment, Board Member of the Future Profile Development, Recruitment, Nominations & Succession Plan Development Communications & Information Architecture Study: Reimagining Your Board Packs & Meeting Agendas Contact us to learn more about how we can strengthen the leadership and governance of your organization. Jennie Boden, CEO "One of the most vital governance issues that organizations are faced with today is the evolution of their governance policies, practices and systems as they grow. We've found that -- as one CEO put it -- many have been 'working with their Boards, but not on their Boards.' While the organizations (including the Management) are growing and evolving, so, too, must an organization's governance."

Leadership Resources Finding Balance in Board Meetings Efficiency vs. Engagement Read More A Matter of Leadership CUs need to pave a new road to ensure a strong, high-performing board over time. Read More Nine Leadership Challenges The board of the future will need the strength to overcome these. Read More No Higher Calling The challenge of effective CEO evaluation Read More 'Quantum' Board Engagement Six questions to help you more fully get your board engaged Read More Board Engagement Needs A Boost Strategies to use in your monthly meetings Read More A Matter of Culture What drives yours? Here are 10 elements to shoot for in your board room. Read More Surfacing Assumptions Knowing what you're assuming can boost board strategic thinking. Read More Fiduciary AND Strategic Thought Needed Finding the right balance between operational oversight and visionary dialogue in your boardroom is worth the struggle. Read More

< Back A Matter of Culture Michael Daigneault Apr 1, 2014 What drives yours? Here are 10 elements to shoot for in your board room. I ask credit union leaders a lot of questions… Indeed, asking questions is one of the best things effective consultants do. Some of my questions have proved fairly easy to answer; some, much more difficult. In recent years, one of the most challenging questions for many credit union CEOs and board leaders has been: “What type of organizational culture are you trying to foster at your credit union?” The difficulty in answering this question has led me to ask a second question, which has proved even more vexing: “What type of leadership or governance culture are you trying to foster at your credit union?” I have tried to discover what makes it is such a challenge for leaders to answer to these fundamental questions—particularly at the CEO and board levels. Perhaps the notion of organizational or leadership culture is something they haven’t had the chance to think a great deal about? Perhaps they have been focused on other things—like survival, economic shifts, new regulations or financial ratios? Maybe culture is something credit union leaders simply accept as-is—or take for granted? Maybe the very notion of organizational culture—as applied to a credit union or its governance—is confusing and needs to be clarified? (It is a fairly new construct, dating back perhaps just a few decades.) Or maybe it is all of the above? Uncovering why it is so difficult to answer the “governance culture question” has taken me on a recent quest to figure out what organizational culture is at a deeper level—and to try to better understand why many experts feel culture is so important to organizational success. For example, in 2010 organizational culture guru Edgar Schein warned that “cultural understanding is desirable for all of us, but it is essential to leaders if they are to lead.” Jim Dougherty wrote in a 2014 Harvard Business Review article that “company culture is part of your business model,” and “the single most important attribute to successful companies.” If these experts are right—and culture is somehow central to success—then we should try to uncover the hurdles CU leaders face in understanding, articulating and building the culture of their institutions. In particular, we should try to identify and overcome any leadership and governance culture challenges leaders may face. What is ‘Organizational Culture?’ Every credit union has a culture. Just what that culture is can be hard for its leaders to describe—even if they have been with the credit union for a long time. Although long-tenured board members often feel they understand their CU well, they are frequently too close to it to really take a step back and identify the unconscious beliefs and assumptions that have been guiding their decision-making. It is, as such, a real challenge for board leaders to really see their own organizational culture. This can be the case concerning the CU overall (where leaders do not always have the kind of institutional access to pick up key cultural cues) and at the governance level (where leaders may be too personally involved to identify the underlying assumptions with any degree of objectivity). In his book Organizational Culture and Leadership , Edgar Schein formulates a formal definition of organizational culture, the essence of which is this: “what a group learns over a period of time as it solves its problems of survival in an external environment and its problems of internal integration.’ This leads us then to a new pair of questions you should yourself ask about your credit union: How much is your organizational culture simply an unconscious by-product of your founders’ or key leaders’ leadership style? And, on the other side of the coin: How much is your organizational culture the result of a conscious attempt to shape its values and assumptions? This last question brings us to look deeper into how credit union leaders can work together to improve their organizational and leadership culture. How Do Leaders Create or Change Culture? If you have been trying to make changes in how your organization works, you need to find out how the existing culture helps or hinders you. Accordingly, you need to determine what assumptions operate within the existing culture. Schein groups assumptions into three basic levels: 1) artifacts—all of the surface things you would first observe, see, hear or feel when you encounter an organization; 2) stated beliefs and values; and 3) basic underlying assumptions—the unconscious, taken-for-granted beliefs and values of the group. In 1983, Schein wrote that when organizations first form, there are usually dominant figures or “founders” whose own beliefs, values and assumptions provide a visible and articulated model for how the group should be structured and how it should function. As these beliefs are put into practice, some work out and some do not. The group learns what parts of the founder’s belief system work and which should be left behind. This learning gradually creates shared assumptions. Founders and subsequent leaders continue to attempt to embed their own assumptions, but increasingly they find that other parts of the organization have their own experiences to draw on and, thus, cannot be changed. Increasingly the learning process is shared, and the resulting cultural assumptions reflect the total group’s experience, not only the leader’s initial assumptions. But leaders continue to try to embed their own views of how things should be and, if they are powerful enough, continue to have a dominant effect on the emerging culture. Board members need to be able to take a step back and reflect on how your organization either challenges (or doesn’t) these assumptions. Be aware that your response will be tainted by your own influence on the culture you have helped to build. This is where an unbiased third party who can remain objective and observe your board’s dynamics may be helpful. If you are trying to examine (or change) your governance culture, you may also find yourself fighting against the organization’s design and structure; organizational systems and procedures; the design of physical space, facades and buildings; stories, legends, myths and symbols; and formal statements of organizational philosophy, creeds and charters. Changing culture can be difficult, particularly because sometimes culture can act as a protective mechanism, with each existing assumption working to reinforce and support the other. If you try to change one assumption in isolation, the others will push back to reinforce the status quo. Assumptions are also driven by the individuals or groups who have influence within the organization. If you want to change the culture, you sometimes have to foster a culture change within your organization’s current leaders, or modify the organization’s core governance philosophy as well as its policies and procedures. While often the most effective, changing the behavior of key leaders can be so hard that modifying the core governance philosophy is often the best opening move. When all else fails, a change in personnel may be required. But there is hope. Change can happen. It takes a focused effort and commitment to the following types of primary mechanisms: what leaders pay attention to, measure and control; how leaders react to critical incidents and organizational crises; deliberate role modeling and coaching; operational criteria for the allocation of rewards and status; and operational criteria for recruitment, selection, promotion, retirement and expulsion. 10 Elements of an Effective Culture Once you and your colleagues—both the board and the senior staff leaders–have effectively recognized and thoughtfully discussed the underlying assumptions driving your current credit union leadership culture, you can turn your attention to identifying any weaknesses or gaps and shape a more effective leadership culture for the future. I challenge you to address each of the following 10 key elements to build an effective board culture for your credit union. 1. Commit to a culture of engagement. Nothing really improves unless the board and senior staff are actively engaged in the process. This means leaders have to do more than just attend monthly meetings and listen. It means they have to do their homework, and be genuinely prepared. It means they have to show up and actively engage in discussions. That way, they can co-create with senior management the future of their credit union. It’s the responsibility of senior staff leaders and all board members to be familiar with the credit union’s key programs and strategic initiatives. It’s also the responsibility of leadership to work together to improve them. To do so, you must be engaged. 2. Join with management to foster a culture of teamwork. There is a lot of literature in the business world on the importance of teamwork, but seldom is it applied directly to boards. Taking a page from Management 101, you and your colleagues must join together to foster a culture of teamwork. And not just among yourselves—be sure to include members of your credit union’s senior leadership. Who else will work with you, shoulder to shoulder, during times of challenge? Evaluate opportunities with you? Celebrate the successes with you? Share the burdens? 3. Build a culture of curiosity. Socrates was recognized by Oracle at Delphi as one of the wisest men on earth because he was a genuinely curious man who was open about what he knew and—perhaps more importantly—what he did not know. Bring your own humility to the board room. Come with an open mind and learn from both your board and senior staff colleagues. Curiosity is one of the most important attributes a director—and a board as a whole—can have. 4. If you are able to develop a culture of curiosity , you’ll likely also foster a culture of learning. You and your colleagues will bring to the table your own personal curiosities and, combined together, you will move in the direction of what Peter Senge, a leading 21st century management theorist, has called a “learning organization.” Indeed, you can then begin to look at board room (and many committee meeting) experiences not through the lens of “necessary data exchange,” but the lens of “collective learning.” Culture is a learned experience and learning models should help us to better understand culture creation and change. 5. To support your learning, you and your colleagues will need to foster a culture of inquiry. You will need to revise the very nature of your board meetings so they encourage a genuine dialogue and exchange of ideas, a culture in which great questions are recognized and appreciated. Gone should be the days of stale committee reports or—worse yet—committee reports that simply mirror the written briefing materials. 6. All this communication requires that CU leaders maintain a sincere culture of respect. Respect does not mean agreeing to everything anyone else suggests. It does not simply mean being “nice.” It does mean deeply listening to—and honoring—other leaders’ voices in the process of decision-making. It also means valuing others’ contributions and knowing the boundaries of the role you each are carrying out. 7. Be mindful that you have all committed your time, talents and expertise to the CU board for the same reason—to be of service. Focus on that commitment. Build a culture of service, remembering that the roots of the CU movement are deep. For more than 100 years, credit unions have been providing quality financial services to their members. Above all else, we are driven as a movement by our commitment to cooperative principles. Voluntary and open membership, member economic participation and rewards are at least as—or more important than—the bottom line. 8. Because you are stewards of other people’s funds and have committed to a culture of service, you and your colleagues should—and will—be held to a very high standard. You will need to, therefore, build a strong culture of diligence. Some components of this part of your culture will be informal. Together you and your colleagues will determine mutually agreed-upon standards and expectations for how you will act and govern the CU. Other, more formal standards will be imposed upon your CU by regulators. In either case, you and your colleagues must pledge that together you will be eternally vigilant on both the formal and the informal standards guiding your decisions and actions. 9. As stewards of other people’s funds, and because as a CU you are committed not only to a culture of service but also to cooperative principles, you must commit to a culture of accountability. Of course, you must hold each other accountable and, clearly, accountability extends to your credit union’s CEO and, ultimately, the staff. You must model a culture of respect from the top-down, the same way you must model accountability. 10. Ultimately what every organization wants to build is a culture of trust. You want a trusting relationship with your members, your staff, your regulators and with the public. It’s the right thing to do and can only benefit your business bottom line as well. In all, building a culture that breeds success for your CU will not be an easy journey, but is certainly one that’s worthy of the effort. Challenge your organization’s long-held assumptions. Commit yourself. Be engaged. Ask your questions. Leave your ego at the door. Respect one another. Hold each other accountable. And do the right thing. Having done so, you will earn the trust that your members place in your leadership! Previous Next

Shannon Zayas VP of Operations & Senior Consultant 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

< Back Transitions of Power Jennie Boden Jan 26, 2021 A perfect time to re-evaluate your organization and its direction is when a key leadership shift is on the horizon. The recent transition of power in our country got me thinking about transitions of power in credit unions—both at the board and CEO levels. I think as a community, we give the most thought to CEO transitions, and this is definitely smart. The CEOs of many credit unions have been around for years, even decades. These CEOs have shepherded their credit unions through incredible growth, sometimes from managing receipts in a shoebox to managing billions of dollars in assets. The change that CEOs have experienced in their credit unions over these years, even if their growth has not been quite that phenomenal, is substantial—just as significant as the change that the credit union community has seen. And it’s important to step back and take the time to think about the future before the critical transition of power needs to take place from one CEO to another. It’s important, as a long-tenured CEO prepares to depart, to re-evaluate the credit union’s future direction, even the future direction of the board. What you needed and wanted from your CEO 10, 20 or even 30 years ago is, by definition, different than what you will likely want and need today. And clarity is key. Be honest. If you’re a risk-averse board, hiring a progressive CEO could be a non-starter. You’ll be clashing before your first board meeting. Chair-to-Chair Transitions Board-level transitions of power are just as important as CEO transitions. The transition from one chair to the next is far too often overlooked from a strategic point of view. Perhaps it is because it happens with greater frequency, but we take for granted that every member of our board will know how to take the gavel in hand when it’s her or his turn, and that’s simply not true. Not every board member is cut out to be the chair, just like not every board member would make a great treasurer, for example. (I know that I wouldn’t make a good treasurer!) And sometimes, certain individuals would be best suited for specific moments in time. A board member who has experience with mergers and acquisitions, for example, would be terrific if organic growth falls last among your strategic priorities. We’ve also seen some credit unions place their officers on a moving conveyor belt, rotating individuals through the four positions every year or even two. This also doesn’t support a healthy transition of power. By the end of year one, like in most jobs, the officer is just learning the position and putting solidly into place the relationships that they need to govern. By the end of year two, things are just beginning to click, and then the rotation begins, and the process starts all over again. Consider a four-year term to allow for a healthier transition of power, on-the-job learning and a few years of smooth sailing. Reflection on Your Organization and Its Direction Finally, take these important transitions—each of them—to pause and learn more about your credit union and what you want it to be in the future. Reflecting on your vision, mission and strategy when a new CEO transitions into the credit union or revisiting the board’s governance structure, policies and procedures after a three-to-four-year period is prudent. This is not to say that we don’t support a consistent, rigorous schedule of self-reflection and even self-assessment—we do. But in particular, transitions of power—both within our country and within our credit unions remind us, as the nation’s new favorite poet reminds us: “And yes, we are far from polished far from pristine but that doesn't mean we are striving to form a union that is perfect. We are striving to forge a union with purpose…” - Amanda Gorman Previous Next

< Back Building Your Associate Board Member Program, From The Philosophy Up Jennie Boden and Gisele Manole May 1, 2021 The groundwork for success includes commitment from the start. The debate over the best governance practices for board succession rages on. It is a routine topic in every single engagement and interview we conduct. The issues of diversity and term limits are especially prominent lately, and the daunting task of building the board of the future feels, as with many other responsibilities, like a full-time job for the credit union’s volunteers, all of whom have limitations on their time. The State of Credit Union Governance 2020 found that almost half of board members surveyed (45%) thought that their board was only adequate or less than adequate at attracting people who have the right skills. So, what does it take to marry talent with your board and governance culture? Mina Worthington, CEO of $796 million Solarity Credit Union in Yakima, Washington, describes how her credit union answered the question. “Ultimately our success was in finding the right way to meaningfully involve associate board members in the work of our board,” she says. “They are board members in every way possible except for the vote.” What does an associate board member program look like? And are some key ways that associate board members can be brought successfully into your fold? At Solarity CU, associate board members are partnered with a “board buddy” to help orient them to the credit union and the culture of the board itself. Proper board orientation is oftentimes overlooked or treated as a “self-help” effort, lacking a strategy for continuing orientation past reading the governance manual, bylaws and policies and meeting with the CEO and senior management. An associate board member at Solarity CU explains: “Right after I joined, my board buddy reached out and called me. We sit next to each other in the board meetings. She’ll whisper historical things to me and follow up with me after the meetings to be sure that I understood everything. I’ve only been on the board for about two months, but I already feel respected, and I definitely feel like my voice is heard.” Another hallmark of Solarity CU’s success with its associate board member program has been the institution of regular monthly meetings between the CEO and associate board members before the board meetings to review the meeting materials and answer any questions. Worthington says, “Investing the time in building those relationships with associate board members was just as important as making sure that they knew what was going in the meeting materials each month—the message being, ‘We want to learn about you as much as you want to learn about us.’” Another hallmark of a successful associate board member program is access to training and conferences that give associate members a broader look at the issues, innovations and ever-evolving best practices in credit union governance. Think of this as an investment by both parties in the future of the credit union. A multitude of resources are available—from online trainings and workshops to conferences and certification programs. Some are even free! So, the underlying philosophy of a successful associate board member program must be, “We’re 100% committed to you,” instead of thinking of associate members as engaging in a protracted interview process that can sometimes go on for years. From our experience in working with thousands of credit unions, an associate board member program that engages, orientates, educates and invests in its volunteers in meaningful ways is the best way to ensure the future of your credit union. In the coming year, if you haven’t explored an associate board member program to support a healthy balance of board renewal at your credit union, maybe 2021 is the year to do so. Just be sure, as with everyone in your boardroom, that you are open and committed to helping those volunteers develop into exceptional stewards of your vision and mission, too. You can purchase Quantum Governance’s Associate Board Member Job Description, as well as other policies from their Policy Library here . Previous Next

< Back Director Onboarding Post-Election Michael Daigneault Dec 22, 2015 9 steps to take to help new directors serve well In a previous Good Governance column on CUES , I talked about the importance of having a process in place to identify potential board members, introduce them to the credit union and, eventually, ask them to run for the board. Once directors are elected, you’ll need to build a robust, comprehensive onboarding program that includes such elements as: Public announcement of the election. Kick off your orientation program (and a welcome to the board) with a public announcement of your new colleague’s election. Use this opportunity to get to know your new director and for him or her to know the credit union more closely. Hold both formal and informal board orientations for the board and staff. This is the easy part. Schedule formal briefings with both the board and staff for your new director. From our experience, this is where most credit union orientation programs start … and, sadly, where they also stop. Appoint a mentor or guide. Identify a seasoned director to mentor and guide your new colleague for the first year. The mentor can answer questions on a one-on-one basis, accompany the new board member to credit union events and generally help shepherd the new director through the first year. Schedule regular check-ins by the board chair or mentor. Have regular de-brief conversations to “check in” with your new board members to answer any questions and take their pulse within the first two months. Schedule an informal meet and greet event. To introduce your new director to the full board, host an informal event, either before or after his or her first meeting, to welcome your new director to the ranks. Have the chair appoint the new director to a committee or taskforce. After a period of time, and in consultation with the new board member, appoint him or her to a board committee or taskforce. Be sure he or she is well oriented and welcomed by the committee or taskforce chair. Schedule regular check-ins by the board chair and/or mentor. Schedule another check-in at three to six months. Encourage participation in external educational opportunities. Expose your new board member to external educational opportunities, such as national conferences offered by CUES. Schedule regular check-ins by the board chair or mentor. Schedule another check-in in the 6- to 12-month time frame. In addition to the steps outlined above, some credit unions have developed associate director programs in which new directors join in a non-voting capacity before any official positions become available. Still others use their supervisory or audit committees as effective training grounds for new board members. Remember, ultimately, you are bringing a new colleague into the fold. I know that for many of you, it may be difficult to remember back to your first board meeting. For some, it may have been 20-plus years ago. And the times have changed dramatically. What you needed to know then and what your new colleagues need to know now is night and day. Develop a plan. Be persistent. Be patient. But above all, prepare your new board colleagues well. 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

< Back The Ever-Elusive Millennial Director Michael Daigneault Mar 28, 2017 Tailor your message and medium in recruiting younger board members. An almost universal goal among credit union boards in recruiting new directors is to improve their outreach to millennials. A common expectation is that prospective directors from the generation born from 1981 through 1997 would better understand and represent the needs of younger members. Moreso than previous generations, millennials are deeply immersed in the digital age and intuitively appreciate the new ways commerce and communications have morphed. In addition, younger consumers now spend $600 billion annually; by 2020, their total annual spending is projected to grow to $1.4 trillion annually, representing 30 percent of total retail sales. They are an economic force that must be reckoned with. Challenges in recruiting millennial candidates may be a reason only one in five board members we’ve surveyed report that their credit unions are “very effective” in attracting people with the attributes identified as desirable to stand for election as directors or to serve in other capacities. Our surveys also find that the average age of directors is on the rise, as is the average director tenure on boards. The combination of these factors puts the need for board rejuvenation at many credit unions at a critical tipping point. At the risk of being bearers of additional bad news, board recruitment won’t get easier in the years to come. Basic demographics are a reason that recruitment of younger candidates will become even more difficult. The Pew Research Center reported in April 2016 that the baby boomer generation (1946–1964) has been the largest in the United States to date, with a whopping 76 million births. Gen X (1965–1980) fell far short of that mark by nearly 21 million births. To some extent, then, the recruiting challenge boils down to numbers: There are simply fewer adults in the gen X age group. In addition, those born after 1964, perhaps because they have been submerged in the technological revolution throughout most of their lives, often engage with or give back to their communities in ways very different than previous generations. As Beth Kanter put it in her book The Networked Nonprofit, “Social media use is becoming ingrained in the way that people relate to one another and work together. In particular, social media are shaping the way that young people think, connect, engage, and work together.” Assuming this is the case, how should your credit union overcome the vital governance challenge of attracting future board members? The vast majority of boards will need to work much harder—and differently—to attract those elusive gen Xers and millennials. First and foremost, keep in mind that people in their 20s, 30s and 40s are as committed as older Americans to social good. However, they are inclined to engage in the world in very different ways, and they may be motivated by different factors. Gen Xers and millennials also may “join” in different ways than previous generations. They tend to: want to help others, but often not through a formal institution. support social issues, but less so the organizations affiliated with them. take small preliminary steps before fully committing to a cause. be strongly influenced by the decisions and behaviors of their peers. treat things they value (free time, money, friends, their network, key social missions, etc.) as having relatively equal value in their lives. experience an organization’s work—and offer their own time and talents—without having to be at a particular place. A strong commitment to mission is central to millennials. In your recruitment efforts, talk about your credit union and the cooperative movement as offering economic freedoms and opportunities in ways that will tap into their passion. Go well beyond the business aspects of what they will focus on as board members to emphasize the greater good. Another strategy is to recruit gen X and millennial candidates in multiples. It is hard to be the only younger person in a leadership position. Many young adults are influenced by the decisions and behaviors of their peers, and networking is as important for them as it is for your current directors. Finally, never treat younger candidates and directors as tokens or underestimate their skills. Depending on their age (and yours), they may be as young or as old as your own kids, but in the context of board service, they are your peers. Though their level of experience on a credit union board may be limited, the abilities, experiences and perspectives of gen X and millennial directors may offer extraordinary value in board discussions, planning and deliberations. Remember, millennials stand where you once stood, and your relationship with them should be one of genuine mutual support and commitment to the betterment of your credit union’s members—and your community. 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 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

< Back The Learning Board Michael Daigneault Sep 23, 2014 Three key building blocks I’ve been a serial learner most of my life. In fact, I drive my wife and colleagues crazy lugging multiple iPads, books, articles and videos around with me wherever I go. I have a book recommendation for nearly everyone who crosses my path. I’m such a space nut that I attended adult space camp (“adult” perhaps being a relative term) at the tender age of 35—to train on the actual simulators that NASA astronauts used in years gone by—because I was curious to learn what it was like to fly the Space Shuttle. Call me a learning geek. So I guess it won’t surprise you that I’ve been thinking a lot lately about the idea of building a culture of learning among credit union boards and about how such a culture might just be the salve to a number of credit union challenges. As it happens, 25 years ago, Peter Senge, an American systems scientist and a senior lecturer at the MIT Sloan School of Management (host of the first segment of CUES’ Strategic Innovation Institute ), suggested the benefits of becoming a “learning organization”—one that has developed a culture that actively encourages leaders, managers and employees to “continuously acquire, transfer and create new knowledge.” Senge’s thesis was applauded when it emerged, but for many large corporations and institutions to actually become continuous learning organizations was an overwhelming and daunting challenge. The personal computer and Internet were still in their infancy. (To give it some historical context, it was the same year “www” was proposed for universal use on the Web, and the Apple computers at the time were the Macintosh Classic and the Lisa. We would have to wait another 11 years for the first generation iPod!) I’d like to suggest that Senge was right in his appraisal of what needed to happen, but seriously ahead of his time. The digital and conceptual environment of today had to be born to enable his vision of a learning organization to genuinely flourish. But the time has been here for a while and it’s time for credit unions to get aboard this train. Today’s credit union faces a particularly challenging, rapidly changing and unpredictable landscape. The cycle times for new products and services have become extremely compressed. Entrepreneurial disrupters can go from an idea to having a major impact on the financial or technological landscape in just months or years. (For example, Square became a $2 billion corporation in just two years.) With ever-increasing regulatory complexities, consolidation, evolving board governance practices, exploding technologies, and the quickly changing needs and expectations of your members and community, the demands on credit union leaders have become greater than ever. This is your moment ... you can allow the challenges to overcome you, or you can overcome the challenges. It is vital that your board and senior management identify key trends, changes and developments quickly— appreciate the implications of such shifts quickly—and courageously help your credit union to adapt quickly. Why the rush? Simply put, the world won’t wait for you. It will change at its own pace … credit unions will have to work very hard to just keep up, let alone “get to the future first!” How can your leadership ensure that it: (1) is genuinely aware of the critical changes taking place; (2) deeply appreciates the implications of those changes; (3) is able to meaningfully partner with management to craft strategies that respond to key shifts and needs; and (4) can do so in an economic climate that demands speed and effective execution of vital strategic choices? Indeed, one of the most important strategic challenges facing nearly all credit unions today is how to individually and collectively learn the changes that are taking place around them, ask the hard questions that need to be asked, strategically experiment, capture the learning from those experiments, and innovate rapidly enough to ensure the relevance of credit unions for years to come. I am convinced that a genuine commitment to be a modern-day “learning organization” led by a “learning board” will help your credit union better understand, successfully innovate and rapidly adapt to the swiftly changing world that surrounds it. But, what do I mean when I say you should build a learning organization and board? And, where do you begin? There are three key building blocks for any credit union leader seeking to foster a learning culture: A supportive learning environment. First, you will need to make a conscious—credit union-wide—that you are dedicated to building a learning organization. It takes a commitment of time, energy and resources. And not just from your board members. Your credit union’s senior management team will be required to contribute and, often, play an active role in helping board members access key learning resources. A concrete learning process. A number of helpful resources are available to support your efforts. Certainly your CUES Director or Center for Credit Union Board Excellence membership opens up a number of important doors to ongoing learning, training and conferences. Be specific about your credit union’s expectations concerning active learning. Outline initial and ongoing requirements for board members, and don’t forget to include senior management and your employees in the fold. Include an assessment of your own and your employees’ commitment to learning as a part of your annual evaluation processes. Leadership that reinforces learning. Lastly, and most importantly, your commitment to learning must come from the top-down – demonstrated overtly by both the board and the senior management team. At my own organization, my staff knows how important ongoing learning is to me. While space camp may have been a dream for me, I do ensure that we regularly include key questions, strategic ideas and even provocative book discussions on the agendas for every one of our quarterly team meetings… Previous Next