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- Resources & Research | Quantum Governance
Resources & Research Finding Balance in Board Meetings Change the text and make it your own. Click here to begin editing. Click Here In Search Of The Strategic Board Change the text and make it your own. Click here to begin editing. Click Here The Need for Evolution: One of Today’s Central Governance Challenges Change the text and make it your own. Click here to begin editing. Click Here Make Your Voice Heard Change the text and make it your own. Click here to begin editing. Click Here Leadership Matters: Choosing Humility Change the text and make it your own. Click here to begin editing. Click Here Does A Divided Vote Make You A Divided Board? Change the text and make it your own. Click here to begin editing. Click Here Know When It’s Time To Go Change the text and make it your own. Click here to begin editing. Click Here Is Your Organizational Success An Accident? Change the text and make it your own. Click here to begin editing. Click Here On Being the Female Chair Leading a Predominately Male Board Change the text and make it your own. Click here to begin editing. Click Here More Listening, Less Mansplaining Change the text and make it your own. Click here to begin editing. Click Here Hudson Valley Credit Union’s Call for Board Candidates Refresh Change the text and make it your own. Click here to begin editing. Click Here Key Outcomes And Lessons Learned From A Board Renewal Effort Change the text and make it your own. Click here to begin editing. Click Here Mentoring … Because If We Don’t, Who Will? Change the text and make it your own. Click here to begin editing. Click Here Serving Members’ Best Interests Benefits From A Constructive Partnership Change the text and make it your own. Click here to begin editing. Click Here Building Your Associate Board Member Program, From The Philosophy Up Change the text and make it your own. Click here to begin editing. Click Here Transitions of Power Change the text and make it your own. Click here to begin editing. Click Here Taking Action On Credit Unions’ No. 1 Director Recruitment Priority: Diversity. Change the text and make it your own. Click here to begin editing. Click Here Some New Remote 'Norms' Are Here To Stay Change the text and make it your own. Click here to begin editing. Click Here Embracing our New (Virtual) Reality Change the text and make it your own. Click here to begin editing. Click Here Into the COVID-19 Fire to Make Things Better for Members and Staff Change the text and make it your own. Click here to begin editing. Click Here Did You Dust Off Your Old Pandemic Plan? Change the text and make it your own. Click here to begin editing. Click Here The Concept of ‘Constructive Partnership’ Change the text and make it your own. Click here to begin editing. Click Here Being Chair Is More Challenging Than You Think Change the text and make it your own. Click here to begin editing. Click Here The Board And The CEO Should Play Doubles Tennis Change the text and make it your own. Click here to begin editing. Click Here Advice from My Hero Change the text and make it your own. Click here to begin editing. Click Here Effective Communications in the Board Room Change the text and make it your own. Click here to begin editing. Click Here Two Of The Five Top Questions Board Chairs Have Change the text and make it your own. Click here to begin editing. Click Here Get Your House in Order—Now, If Need Be Change the text and make it your own. Click here to begin editing. Click Here Millennials Are Many Things, Including Your Future Board Leaders Change the text and make it your own. Click here to begin editing. Click Here Who's on Your Board Today? Tomorrow? Change the text and make it your own. Click here to begin editing. Click Here The State of Credit Union Governance, 2018: Six Key Findings Change the text and make it your own. Click here to begin editing. Click Here A Case for Reaching Higher Change the text and make it your own. Click here to begin editing. Click Here Great Things from the Great North Change the text and make it your own. Click here to begin editing. Click Here ERM Is Everyone's Responsibility Change the text and make it your own. Click here to begin editing. Click Here Resolutions for a New Year Change the text and make it your own. Click here to begin editing. Click Here Supervisory Committees Function Well, But... Change the text and make it your own. Click here to begin editing. Click Here Nine Leadership Challenges Change the text and make it your own. Click here to begin editing. Click Here No Higher Calling Change the text and make it your own. Click here to begin editing. Click Here Creating a 'Wow' Credit Union Board Meeting Change the text and make it your own. Click here to begin editing. Click Here Board Engagement Needs A Boost Change the text and make it your own. Click here to begin editing. Click Here Surfacing Assumptions Change the text and make it your own. Click here to begin editing. Click Here What Key Factor May Be Working Against Your Interest in Raising Board Engagement and Accountability Change the text and make it your own. Click here to begin editing. Click Here Who Needs A Shadow Board? Change the text and make it your own. Click here to begin editing. Click Here Hope for Gen Z Comes in the Shape of Credit Unions Change the text and make it your own. Click here to begin editing. Click Here Gender Equity In The Boardroom: We're Not Done Yet Change the text and make it your own. Click here to begin editing. Click Here Dealing with Divisive Directors Change the text and make it your own. Click here to begin editing. Click Here A Cautionary Tale of Risk Management in This Time of Bank Failures Change the text and make it your own. Click here to begin editing. Click Here The Sophisticated Art of Ensuring Your Board Grows Alongside Your Credit Union Change the text and make it your own. Click here to begin editing. Click Here Defining Consensus Change the text and make it your own. Click here to begin editing. Click Here How Using a Recruiter Can Boost Board Succession Planning Efforts Change the text and make it your own. Click here to begin editing. Click Here The Playground Bully Grows Up Change the text and make it your own. Click here to begin editing. Click Here A Continuously Bigger and Better Box Change the text and make it your own. Click here to begin editing. Click Here Why Directors Are Chess Pieces, Not Checkers Change the text and make it your own. Click here to begin editing. Click Here Are Women Better Leaders? Change the text and make it your own. Click here to begin editing. Click Here Parity In The Boardroom Takes Patience, Planning And Process Change the text and make it your own. Click here to begin editing. Click Here Women In Football, Politics And Credit Union Boardrooms Change the text and make it your own. Click here to begin editing. Click Here Reimagining Your Board Meetings Change the text and make it your own. Click here to begin editing. Click Here RIP RBG: The Thin, Strong String That Ties Women Together Change the text and make it your own. Click here to begin editing. Click Here Weaving a Single Garment of Destiny Change the text and make it your own. Click here to begin editing. Click Here Governance Committee – If You Don’t Have One, Get One! Change the text and make it your own. Click here to begin editing. Click Here The State Of Credit Union Governance 2020: A Summary Change the text and make it your own. Click here to begin editing. Click Here The Importance Of A Truly Independent Supervisory Committee Change the text and make it your own. Click here to begin editing. Click Here Coming Together for the Common Good Change the text and make it your own. Click here to begin editing. Click Here Board Liaisons Direct Directors and Staff Toward Good Governance Change the text and make it your own. Click here to begin editing. Click Here Balancing Impartiality With Voting Change the text and make it your own. Click here to begin editing. Click Here What to Do When Communication Styles Clash: Embrace It Change the text and make it your own. Click here to begin editing. Click Here Many Board Problems Boil Down to Communications Challenges Change the text and make it your own. Click here to begin editing. Click Here A New Credit Union Model with Classic Principles Focuses on Social Purpose Change the text and make it your own. Click here to begin editing. Click Here Closing the Board/Management Trust Gap Change the text and make it your own. Click here to begin editing. Click Here Tell Me Something I Don’t Know: What You Need to Know About Assessments Change the text and make it your own. Click here to begin editing. Click Here 5 Data-Driven Recommendations for Governance Success Change the text and make it your own. Click here to begin editing. Click Here Understanding the Importance of Ethics Change the text and make it your own. Click here to begin editing. Click Here Assessing Staff's Strategic Planning Path Change the text and make it your own. Click here to begin editing. Click Here Help Your New Chair Move Up Change the text and make it your own. Click here to begin editing. Click Here The Ever-Elusive Millennial Director Change the text and make it your own. Click here to begin editing. Click Here The Benefits of Board Committees Change the text and make it your own. Click here to begin editing. Click Here A Matter of Leadership Change the text and make it your own. Click here to begin editing. Click Here When It Comes to Board Meetings... Change the text and make it your own. Click here to begin editing. Click Here The Learning Board Change the text and make it your own. Click here to begin editing. Click Here 'Quantum' Board Engagement Change the text and make it your own. Click here to begin editing. Click Here A Matter of Culture Change the text and make it your own. Click here to begin editing. Click Here Fiduciary AND Strategic Thought Needed Change the text and make it your own. Click here to begin editing. Click Here
- Full Resources (List) | Quantum Governance
Resources Finding Balance in Board Meetings Efficiency vs. Engagement Read More What Key Factor May Be Working Against Your Interest in Raising Board Engagement and Accountability Discover the hidden factor sabotaging your board's engagement and accountability, and learn how to address it effectively. Read More In Search Of The Strategic Board Discover how credit union boards can become agile strategic partners and lead their institutions to future success. Read More Who Needs A Shadow Board? Add younger employees and members directly to your C-suite and board to benefit from their skills and knowledge today. Read More The Need for Evolution: One of Today’s Central Governance Challenges If your credit union has grown have you re-considered the balance of authority between your board and CEO? Read More Hope for Gen Z Comes in the Shape of Credit Unions Generation Z has the potential to be the greatest credit union generation, so why are so many credit unions struggling to get their attention? Read More Make Your Voice Heard 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. Read More Gender Equity In The Boardroom: We're Not Done Yet Boards still have work to do to support their female directors and wider DEI&B efforts. Read More Leadership Matters: Choosing Humility Acknowledge your power in the workplace and strive to have open and humble conversations that encourage other voices to be heard. Read More Dealing with Divisive Directors Honor the principle of democratic member control even when you need to remove a board member. Read More Does A Divided Vote Make You A Divided Board? A divided vote makes you a human board. And it’s what you do afterward that matters most. Read More A Cautionary Tale of Risk Management in This Time of Bank Failures Defining roles and responsibilities and continuing education help ensure appropriate coverage. Read More Know When It’s Time To Go Holding onto your board position may be best for you, but what’s best for your credit union? Read More The Sophisticated Art of Ensuring Your Board Grows Alongside Your Credit Union Four areas to focus on. Read More Is Your Organizational Success An Accident? New study suggests where to look for the answer. Read More Defining Consensus 'Five finger consensus' allows all directors to weigh in on key decisions. Read More On Being the Female Chair Leading a Predominately Male Board Two female board leaders share their experiences and advice for promoting good governance—especially, but not only, as representatives of a minority demographic. Read More How Using a Recruiter Can Boost Board Succession Planning Efforts Approaching director searches like executive searches can produce great results. Read More More Listening, Less Mansplaining In the boardroom and everywhere, it's important to hear all voices. Read More The Playground Bully Grows Up Who are the workplace bullies, and what can we do about them? Read More Hudson Valley Credit Union’s Call for Board Candidates Refresh As part of its board recruitment renewal project, Hudson Valley CU developed a call for candidates that outlined specific attributes that matched its changing governance needs and values. Read More A Continuously Bigger and Better Box Like a nautilus, Hudson Valley Credit Union’s board evolves beautifully into its next stage of governance. Read More Key Outcomes And Lessons Learned From A Board Renewal Effort An analysis of Hudson Valley CU’s work to revise key governance processes. Read More Why Directors Are Chess Pieces, Not Checkers Every director should be ‘chair material’—even if they wouldn’t make a good chair. Read More Mentoring … Because If We Don’t, Who Will? Supporting other women as they advance is important. Read More Are Women Better Leaders? They are when they act with humility, self-awareness, self-control, moral sensitivity and kindness. Read More Serving Members’ Best Interests Benefits From A Constructive Partnership When directors, supervisory committee members and executives collaborate effectively, members benefit. Read More Parity In The Boardroom Takes Patience, Planning And Process But putting in the effort can definitely make a difference. Read More Building Your Associate Board Member Program, From The Philosophy Up The groundwork for success includes commitment from the start. Read More Women In Football, Politics And Credit Union Boardrooms It’s important to prioritize and value diversity. Read More Transitions of Power A perfect time to re-evaluate your organization and its direction is when a key leadership shift is on the horizon. Read More Reimagining Your Board Meetings To make your gatherings more effective and engaging, first look at the real reasons boards meet. Read More Taking Action On Credit Unions’ No. 1 Director Recruitment Priority: Diversity. The credit union and women’s movements are clearly doing something right. But we still have a long way to go. Read More RIP RBG: The Thin, Strong String That Ties Women Together Our foremothers paved the way for us; now we pave the way for the women now coming of age. Read More Some New Remote 'Norms' Are Here To Stay Five tips for a successful pivot to virtual board meetings Read More Weaving a Single Garment of Destiny The key threads include equity, diversity and inclusion. All three are needed for the best leadership and governance for your credit union. Read More Embracing our New (Virtual) Reality The new virtual reality is changing the way we do business. Read More Governance Committee – If You Don’t Have One, Get One! Governance Committees can help ensure boards are running smoothly. Read More Into the COVID-19 Fire to Make Things Better for Members and Staff A strong alignment of the CEO, senior leaders and the board enabled early, effective action. Read More The State Of Credit Union Governance 2020: A Summary Read More Did You Dust Off Your Old Pandemic Plan? Key ideas about response oversight and future strategy Read More The Importance Of A Truly Independent Supervisory Committee If you’re shifting to an ‘audit’ committee instead, be careful not to sacrifice independent oversight at the altar of efficiency. Read More The Concept of ‘Constructive Partnership’ Collaboration, more than control, fuels today’s high-performing boards. Read More Coming Together for the Common Good Consider multiple perspectives and build consensus— not unanimity—to ensure your CU is making good decisions. Read More An Antidote For Shifting Sands Your strategic planning process is as important as the plan and should be ongoing. Read More Being Chair Is More Challenging Than You Think In addition to playing an important role in managing the CEO, the chairman also plays a key role in managing the board itself. Read More Board Liaisons Direct Directors and Staff Toward Good Governance Generally keeping things organized and on track is no small feat—and it’s an important one. Read More The Board And The CEO Should Play Doubles Tennis The constructive partnership between directors and the chief executive is a lot like teammates on one side of the court. Read More Balancing Impartiality With Voting A best practice for chairs is to help the board look at the big picture while still having a specific opinion. Read More Advice from My Hero Six key responsibilities of every board, gleaned from my conversation with world-renowned expert Ram Charan. Read More What to Do When Communication Styles Clash: Embrace It Building a culture of inclusivity helps ensure each voice on your board is heard. Read More Effective Communications in the Board Room Key Findings for Communication Read More Many Board Problems Boil Down to Communications Challenges Directors need to ask good, hard questions—to ‘trust but verify’ in a respectful and professional manner—all toward the good of the credit union. Read More Two Of The Five Top Questions Board Chairs Have 1. Should chairs vote? 2. What’s the best way to ask a director to move on? Read More A New Credit Union Model with Classic Principles Focuses on Social Purpose Reclaim the ‘why’ of credit unions by deeply embedding social purpose in all your activities. Read More Get Your House in Order—Now, If Need Be There is no ‘wrong’ time to deal with fundamental governance issues. Read More Closing the Board/Management Trust Gap 5 ways to unite staff and volunteers for good governance Read More Millennials Are Many Things, Including Your Future Board Leaders Getting to know them can aid your recruiting. Read More Tell Me Something I Don’t Know: What You Need to Know About Assessments Solid financials aren’t necessarily a sign of a high-performance board. Read More Who's on Your Board Today? Tomorrow? The State of Credit Union Governance, 2018 report finds credit unions are more certain of their current mix of directors than they are about the future composition of their boards. Here’s what this means for board renewal. Read More 5 Data-Driven Recommendations for Governance Success Core Recommendations from a New Report Read More The State of Credit Union Governance, 2018: Six Key Findings Use them to increase your board’s focus and effectiveness. Read More Understanding the Importance of Ethics Principled leadership is a vital part of any cooperative’s DNA. Read More A Case for Reaching Higher Musings on the Federal Reserve’s proposed guidance on supervisory expectation for boards Read More Assessing Staff's Strategic Planning Path The challenge is helping front-line credit union folks see the big picture. Read More Great Things from the Great North Three overarching Canadian principles that can be applied universally Read More Help Your New Chair Move Up Here's what a top board leader needs to know to be successful—and what you need to know to help. Read More ERM Is Everyone's Responsibility 10 steps to take to ensure your leadership is doing all it can to identify and manage risk Read More The Ever-Elusive Millennial Director Tailor your message and medium in recruiting younger board members. Read More Resolutions for a New Year Taking the Opportunity to Make Changes Read More The Benefits of Board Committees Get the most out of them by applying these bright ideas. Read More Moving Beyond The Strategic 'Moment' Incorporate strategic planning and thinking into your routine discourse. Read More A Quality CEO-Board Relationship Fostering A Healthy Balance Read More Un-Cage Your Thinking Good Credit Union Performance Doesn't Equal Good Governance Read More Charting a New Direction The roles of leadership in today’s credit unions are changing; specifically, there’s an important new way to think about key board leaders. Read More The Origin Of Civility Be sure to disagree in an agreeable way. Read More Supporting Healthy Board Rejuvenation A healthy amount of board rejuvenation is important—but not too much and not too fast. Read More Director Onboarding Post-Election 9 steps to take to help new directors serve well Read More Start Onboarding Pre-Election Eight steps supporting new board members' success Read More To Pay or Not To Pay Deciding whether to compensate credit union and CUSO directors is a hard question. Read More Board Size There's no one-size-fits-all answer to how many directors you need. Read More Assess for Success 8 surefire times you need to evaluate your board’s performance Read More A Deep Definition of Governance How does your board use its formal and informal authority for the good of the credit union? Read More Supervisory Committees Function Well, But... Just like CUs and their boards, supervisory committees must change with the times. 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 When It Comes to Board Meetings... We can do better. Read More No Higher Calling The challenge of effective CEO evaluation Read More The Learning Board Three key building blocks Read More Creating a 'Wow' Credit Union Board Meeting How to Take Your Meetings to the Next Level 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
- Surfacing Assumptions | Quantum Governance
< Back Surfacing Assumptions Michael Daigneault Mar 14, 2014 Knowing what you're assuming can boost board strategic thinking. Edgar Schein presents culture as a series of assumptions a person makes about a group in which he or she participates. “We tend to think we can separate strategy from culture, but we fail to notice that in most organizations, strategic thinking is deeply colored by spoken and unspoken assumptions about who [these organizations] are and what their mission is,” writes Schein, a professor at MIT’s Sloan School of Management. Hence the famous phrase, “culture eats strategy for breakfast.” Schein groups assumptions into three basic levels: 1. Artifacts all the things you would first see, hear or feel when you encounter an unfamiliar group; observed behavior, routines (easy to see–hard to decipher their true meaning). 2. Espoused beliefs and values ideals, goals, articulated values and stated aspirations; ideologies; rationalizations. 3. Basic underlying assumptions unconscious, taken-for-granted beliefs and values. Each assumption can have an article–or book–written about it. Here are just some of the possible assumptions credit union leaders should challenge: Vision & mission: Why are we all here? What are we collectively trying to achieve? What is our credit union’s purpose? Strategic goals: What strategic goals do we set as part of trying to realize our vision and mission? What is the process for setting the goals? Who really does it? Means to achieve goals (structure, systems and processes): How do we actually go about realizing our goals? Do we have systems and procedures in place at the management level? At the board and committee levels? Measuring goals and results: How will we know if we achieve our goals? How do we identify and measure success? What results are we trying to achieve? What information should we gather and share about our results? Failure: What do we do if something does not go as planned? How do we define failure? If something does fail, do we have a plan? Do we just react to the circumstances? Do we genuinely learn from our failures, or do we simply try to put them behind us as quickly as possible? Common language and information architecture: What are the common words and language we use to refer to things? What is the common framework of communication? What are all the ways we communicate with each other and receive information? Individual and group boundaries: How do we respect each other’s and the collective group’s boundaries? How do we know what those boundaries are? How do we know when someone has “gone too far?” Accountability, rewards and punishments: Do we hold each other accountable? How do we consciously or unconsciously reward desirable behavior and punish behavior deemed unacceptable? Rules of engagement: What are the understandings or assumptions for how we interact with each other? With members? With those outside the credit union? Power, authority and status: Who is responsible for what? What are the delegations of authority? How do we determine what gets done, how it gets done–and who has the authority to change the direction of things? Can such assumptions be identified in the board room? Yes, Schein says. “If we combine insider knowledge with outsider questions, assumptions can be brought to the surface, but the process of inquiry has to be interactive, with the outsider continuing to probe until assumptions have really been teased out and have led to a feeling of greater understanding on the part of both the outsider and the insiders.” Previous Next
- Supervisory Committees Function Well, But... | Quantum Governance
< Back Supervisory Committees Function Well, But... Michael Daigneault Apr 29, 2015 Just like CUs and their boards, supervisory committees must change with the times. We survey a lot of credit union board members. And generally most will say they are pretty satisfied with the job their supervisory committee is doing. In fact, of the five areas on which we survey (vision, mission and strategy; board structure and composition; fiduciary oversight; governance and leadership; and supervisory committee), fiduciary oversight and supervisory committee usually are the two highest-scoring areas. But I’ve been troubled lately. Why? Because a good percentage of board members we interview admit that: (1) they don't really know what their supervisory committee does; (2) if they do know what their committee does, the practices of their supervisory committee do not appear to have changed much in the last decade; and (3) almost 45 percent of board members think their supervisory committee’s analysis of the top operational and strategic risks facing their credit union are less than effective. Notably, half of the board members at one CU client even described their supervisory committee’s oversight of the external auditor--traditionally one of the key functions of that committee--as either adequate or even ineffective. So, what’s going on? Today’s credit unions are not like the credit unions of yesterday. The CU world is increasingly multifaceted, with regulatory complexity, a growing number of mergers and acquisitions, disruptors from all sides, evolving board governance and leadership practices, exploding technology, and different types and degrees of risk. Just as your credit union evolved from its early days when the governing board served multiple roles and the supervisory committee’s charter was likely focused only on the external audit, so, too is it time for that committee’s purpose to evolve with the changing landscape. Many supervisory committees today are being stretched beyond their traditional focus of helping to oversee the internal and external audit functions of a credit union. They also are being asked to carry out verification of accounts, receiving member complaints, ensuring regulatory compliance, and other critical oversight processes, including – for some credit unions – the possible suspension of credit union board members. The most progressive credit unions are going even further--asking supervisory (and audit) committees to expand the scope of their efforts to include the idea of risk beyond just financial risks. As such, some supervisory committees are taking a more active role in helping to encourage the credit union’s enterprise risk management efforts--working in cooperative partnership with management, including the CEO and CFO--to identify and mitigate key risks facing the credit union. How far does your supervisory committee go? And how would you and your colleagues on the board answer the question, How effective is your supervisory committee’s analysis of the top operational and strategic risks facing your credit union? Previous Next
- Nine Leadership Challenges | Quantum Governance
< Back Nine Leadership Challenges Michael Daigneault Mar 25, 2015 The board of the future will need the strength to overcome these. At Quantum Governance, we’ve been taking a look at what the credit union board of the future will look like and, almost more importantly, the challenges it will face. Ultimately, we have identified nine key challenges that are already (or will be) confronting your leadership. The Composition Challenge. Gone are the days when your credit union can simply rely on a nice cross section of its membership to fill open slots on its board. The most progressive boards today are actively recruiting the talent they need; identifying the skill sets that deliver the talent, connections and expertise they need on the board; and then inviting those individuals to become members of the credit union. The Technology Challenge . The rate of technology is changing at lightening speed. I don’t have to tell you that. But here’s the thing. It’s changing at a faster rate than anything else we’ve ever seen. Faster than political change, business change and even social change in our world. Is your board ready? Is the credit union? The Community Challenge. The very notion of community is being altered by technology. Community is ceasing to be largely defined by geography and more often it’s defined as a sense of belonging. How does that impact your “community” credit union? Indeed, as a credit union member myself, I haven’t set foot in a local branch for more than a decade. What does that mean for your business? Is your board discussing the impact of this from a strategic point of view? The Disruptors . How many of you have heard of Uber? Five years ago, could you have ever conceived of an online reservation ride service? I’m sure the taxi companies in nearly 130 American cities never dreamed their business could tumble by more than 65 percent in just one year, like it did in San Francisco. Uber wasn’t even on the radar then. What’s not on your radar now? It’s difficult to know. And that’s the point. You won’t know. More than 99 percent of the disruptors will fail, but it will only take one to succeed and have a dramatic impact on your credit union’s business. The Demographics Challenge. We love Baby Boomers. First, there are lots of them. Eighty million of them, and they are doers. Board service has been a part of their DNA. But what about the next generation: Generation X? Much has been said about them and most of it hasn’t been good. I happen to think they are doers, too. And very civic-minded, but in a different way. Their way of giving back is more individualistic. When they want to get involved, it’s more on a one-on-one basis. When they want to make a difference, they start their own organizations … forge their own path. And critically, there are 40 million fewer people in Generation X than there are Baby Boomers. If you think you’re having a tough time finding good, qualified and engaged board members now, it’s about to get harder. The Information Challenge. With your iPad and your smartphone, you probably have more information at your fingertips than the entire federal government did 25 years ago. But what matters? What’s important? What information will move your credit union forward? What do you need to know and what is just white noise? One of the key challenges for credit unions is not a lack of information, but rather the volume and variety of data available. The current flood of information can be like trying to satisfy your thirst with a hose attached to a fire hydrant! The Complexity Challenge. This challenge is related to The Information Challenge and every credit union will face it. It’s a distinct moment in time – that moment when the abilities of a credit union board are overcome by the increasing quantity and complexity of credit union regulations, responsibilities and requirements. There is more and more expected of you and your colleagues as directors. The demand for your knowledge base is only continuing to grow. The Risk Challenge. There’s a great book titled Competing for the Future , in which the authors say organizations that “create the future are rebels. They’re subversives. They break the rules…Foresight often comes not from being a better forecaster, but from being less hide-bound.” It comes from breaking free from your mold, from taking more risks. Is your credit union board “hide-bound?” Are you stuck? My guess is that you and your board colleagues spend more time on the lower end of the risk spectrum – most credit union boards do. But, if you’re going to grow … if you’re going to forge the future, maybe even be a credit union disruptor yourself, you’ll need to learn how to effectively balance two abilities: 1) understanding, identifying and mitigating risks to the credit union; and 2) tolerating the risk that will enable you to grow. The Impact Challenge. It’s not enough to keep your head down and do good work. You have to not only keep your head up, but you have to get out. The Impact Challenge requires that you foster relationships, as leaders and always in constructive partnership with your CEO, with external stakeholders to have the greatest impact. And that goes far beyond your membership to include governmental representatives, local businesses and, yes, even other credit unions. To face these nine challenges successfully, your board will need to regularly strengthen its leadership and governance abilities. You can do it! Previous Next
- A Matter of Leadership | Quantum Governance
< Back A Matter of Leadership Michael Daigneault Apr 1, 2015 CUs need to pave a new road to ensure a strong, high-performing board over time. Perhaps one of the most vexing and controversial challenges facing the credit union community today concerns the fundamental question: How can a credit union ensure ongoing, effective governance and leadership? One of the historical building blocks of a CU is that it is a cooperative. It has long been thought that financial cooperatives will be best led by members who have an actual financial stake—or share—in the CU itself. Since their own money is invested in the CU, it is widely assumed they will be aware of—and appropriately engaged in—the proper oversight of the credit union’s financial affairs. CU members accomplish this by electing a board to take on a set of responsibilities designed to help ensure the safety and soundness of the members’ resources, as well as the effective governance of the CU. The current state of credit union governance is, however, being severely challenged by a rapidly changing environment and a sometimes stagnant board. (Read a bonus article, “ The Nine Leadership Challenges , ”.) One of my senior consultants came to Quantum Governance from the general nonprofit sector. She was stunned when assigned to her first credit union client. What she found was a group of directors, the majority of whom had been in their positions for well over 20 years. Because of the long-time tenure of these board members, the institution was facing the wholesale turnover of both its board and its CEO in the next few years. By holding on so long, the board members actually ended up endangering leadership continuity—exacerbating the very problem they professed to be solving by their continued service. The time has come for boards to reframe and “rebalance their responsibilities,” as Ram Charan has noted in his new book, Boards That Lead: When to Take Charge, When to Partner and When to Stay Out of the Way . Yes, board monitoring and oversight are still important, but they are no longer sufficient. The reality is that for many CU boards, more effective leadership is needed. What Leadership Leads To At Quantum Governance, we talk with a lot of credit union board members and, unfortunately, what we’re hearing from them about their ability to effectively lead and govern isn’t altogether positive. The following data is from our 2014 credit union compendium: More than 25 percent of all board members we’ve surveyed think their board is “less than effective” at building a leadership culture of trust. Thirty-seven percent think they are “less than effective” at holding each other accountable. Only one in five board members thinks their board is “very effective” at asking the hard questions that need to be asked. Twenty percent of board members say they are “ineffective” or only “adequate” at acting decisively when necessary. Sadly, about one in three directors says their board leadership and governance culture are “less than adequate” overall. Importantly, credit union boards are struggling to find the right people to serve—with only 18 percent saying they are “very effective” in doing so. How to Get More Effective Leadership So what’s a credit union to do? Renewing the strength of your board and its leadership can be accomplished using various techniques. If you answer “no” to even a few of the questions in the following section, you’ve got some work to do. And you need to get moving, or you’re likely to get left behind. Way, way behind. Board assessment. Is your board working on strengthening its governance practices? Are you reflecting on what’s going well and where you’re struggling? How are your committees functioning—especially your supervisory committee? Have you and your colleagues committed to a regular process of board evaluation? Training for needed competencies and strengths. Are you undertaking a robust training initiative that responds to your assessment results by strengthening your directors’ intellectual capacities and stretching the boundaries of current discussions? Do your fellow directors return from the latest CUES or other conference full of ideas and enthusiasm? (Read “ Starting Point ,” about developing plans for director learning, in this issue.) Associate board member program. Have you considered an associate director program that will afford up-and-coming volunteers the ability to learn about your credit union’s business “from the ground up?” Are your committee rosters creatively drawing from non-board members–those in the community who could foster a wider sense of support for the credit union and support your associate director program? Do your recruiting “tentacles” go beyond the supervisory committee? (Also read “ Working in the Governance Wings : Strategies for readying volunteers to give a good performance once on the board”) Term limits. This practice is rooted in one of the central principles of maintaining board effectiveness over time and the idea of creating (and sustaining) a careful balance between historical continuity and rejuvenation. A big potential benefit of limiting the length of service of credit union directors is fostering an influx of new talents, skills and energy to the board as a whole, as well as among board officers. Of course, there are a number of traditional challenges raised concerning term limits. Some credit unions fear losing valuable board leadership and institutional knowledge. (Get ideas for minimizing this risk ) It takes time to really understand the issues at play within an organization—and credit unions are complex financial organizations. Some believe it imprudent and inefficient to spend valuable time and energy getting board leadership “up to speed,” only to then urge them to move on at the close of their tenure. Another frequently raised concern is an actual or perceived shortage of suitable or willing candidates. Such a shortage of qualified candidates can be an authentic challenge—or simply the net result of very low turnover. Of course, if a board officer or member has proved effective, there are some who would suggest it is entirely appropriate to maintain the status quo because “if it ain’t broke, don’t fix it!” Certainly, I’m not saying that term limits are the answer. They are, clearly, only one tool. But they can be a helpful tool for your board’s leaders. Rotation of officers. Additionally, it is helpful to periodically rotate directors through board officer positions so a sustained concentration of power in a limited number of individuals (either actual or perceived) does not occur. Rotating board officers also helps an organization from getting stuck with just one leadership style. Board officer rotation is also thought to strengthen the pool of candidates willing to serve. This is due to the common occurrence that some will naturally aspire to board leadership roles—but only if it is perceived there is an authentic opportunity to attain a leadership role after a reasonable period of time and service. Finally, a lasting concentration of authority in a select, few individuals is, I believe, contrary to cooperative governance principles. Know the true role of the board chair. While there are courageous conversations that need to happen at the chair’s level when a board member is failing to live up to his or her fiduciary responsibilities, strengthening the leadership of the board is not just your chair’s responsibility. As a board member, it’s your responsibility to truly be engaged. Don’t simply attend the meetings and go through the motions; be an active player. A board member recently told me that he estimated about 70 percent of his colleagues barely even spoke at his CU’s board meetings. Is that leadership? Your members are depending on you. More Than Incremental Improvement The challenge I would place before you is this: Are you entirely sure your current situation isn’t broken? Fundamental or truly transformational changes—not just incremental—are what your credit union must undertake to craft the exceptional board of the future. A board that can truly help to overcome the types of challenges facing credit unions. It will take exceptional board leaders, working in constructive partnership with management, to be successful. It is likely that some of the leaders you need to move forward are already on your board; it is equally likely that some leaders you need to meet such challenges are not. I couldn’t agree more with author Michael Hudson, Ph.D. in his Credit Union Management Article, "When Directors Step Down:" Directors, when it’s your time, have the courage to step up and step down. Board chairs, you have an important role to play, too, in board rejuvenation. Have the hard conversations. If someone isn’t participating or truly adding value, it’s your job to find out why, and—if need be—help find someone who will. In the end, no single tool, technique or individual strategy is a substitute for what is needed most at this pivotal time in the credit union community and that is, of course, courageous leadership on the part of every member of the board. Previous Next
- When It Comes to Board Meetings... | Quantum Governance
< Back When It Comes to Board Meetings... Michael Daigneault Jan 27, 2015 We can do better. For more years than I sometimes care to admit, I’ve traveled the country consulting with credit union boards of directors and CEOs. One of the questions that frequently arises in our discussions is: How can we make our board meetings better? Better is certainly an aspirational – but also amazingly ambiguous – term. I’ve learned it can mean remarkably different things to different credit union leaders. For example, in the context of board meetings, I have been told better means: more strategic discussions, shorter meetings, a more engaging experience, an opportunity to hear everyone’s voice, more efficient meetings, fewer – but longer – meetings, meetings that produce more effective decisions, a more robust accountability culture, meetings giving clearer direction to staff and meetings producing greater consensus. These are all well intended, but also all over the map! It makes me wonder what’s really happening at many monthly credit union board meetings? Is this what the agenda looks like at your credit union’s board meeting? The chair calls the meeting to order and offers a brief set of general remarks or report. There’s then a CEO report, often followed by financial, staff and committee reports. There’s little time for genuine dialogue or discussion. Indeed, the agenda is often centered on telling the board various types of information – reinforcing the board’s role as overseers or fiduciaries. Old School Meetings Historically, most credit union board meetings have largely emphasized the board’s formal role. A routine (even rote) agenda has been frequently use to move efficiently (often thought of as “quickly”) from one report, informational item or policy issue to another. Board members were on hand to receive information or data, provide the required fiduciary oversight and make quick or final decisions when necessary. Many such decisions tended to be made immediately or even in advance of the board meeting. Tough questions – or even meaningful dialogue – were often viewed as hindering or even obstructing the meeting. In today’s credit union environment, however, this board meeting paradigm does not work particularly well. I often wonder if a critical mass of credit union boards even know they’re likely stuck in an outdated way of conducting their meetings? Why do I ask? Because the board meeting of the future looks remarkably different from the board meeting of the past. New School Meetings Yes, the chair still opens the meeting and offers some remarks, but now he or she notes unique elements for the meeting’s success. It’s the chair’s responsibility to help his or her colleagues focus, and set a tone that invites meaningful exchange. Such items as routine reports, informational items, administrative changes, minor alterations to policy and the like can often be included in a “ consent agenda ” and approved with a simple vote. Likewise, a thoughtful dashboard presented by the CEO can be used to efficiently and effectively highlight the critical indicators of your credit union’s efforts. After asking any needed clarification questions of the CEO or senior team, you and your director colleagues are then able to transition to the other central agenda items for the day: one or more strategic or educational discussions designed to help your credit union move forward. What would the members of your board do if, aside from the chair’s remarks, a consent agenda and an effective dashboard review, there was a significant strategic question posed for consideration and discussion, and you had more than an hour in which to really discuss it? How do you think your board colleagues would respond to such an experiment? Would they be open to the possibility or change? I strongly suggest you consider evolving your board agendas from emphasizing the formal role of your board to focusing on the board’s influential and persuasive role as well. Vary the agenda items and include open spaces for dialogue and deliberation where questions can be posed and collective learning can take place. Chairs, develop agendas that encourage strategic questions and dialogue from your colleagues. CEOs, you can help by identifying real strategic questions facing the credit union. In partnership with the chair, highlight such questions by building an agenda item around them. While I do not suggest that credit union volunteers or executives lessen their focus on fiduciary oversight, I do suggest they can meet smarter and more effectively. Namely, that board meetings focused predominantly on information or data exchange are not enough. I urge them to remember that vision, strategy and effective governance are among the board’s central responsibilities. The structure and culture of board meetings can greatly assist—or impede—such vital responsibilities. Previous Next
- The Learning Board | Quantum Governance
< 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
- No Higher Calling | Quantum Governance
< Back No Higher Calling Michael Daigneault Nov 25, 2014 The challenge of effective CEO evaluation It never fails—when I’m with a group of board members (which is very, very often) and I ask “What are your core responsibilities?” someone will always say, “to hire and fire the CEO.” And yes, I suppose at a very basic level this is true. Perhaps there is no more important decision a typical credit union board makes than in the hiring of a CEO. There is, of course, so much more to developing a successful relationship with a credit union CEO than in his or her hiring and firing. If you were to think back over your career and consider the best mentors you had—the ones who were able to elicit from you your finest moments as an employee—certainly you would consider their contributions to your career far beyond the moment they hired (or even fired) you. Indeed “CEO support and oversight” (not solely hiring and firing the CEO) is a key board responsibility that Quantum Governance focuses on. (The others are governance and leadership; performance and results; strategic thinking, learning and planning; budget and resources; membership and community outreach; and stewardship, ethics and financial integrity. On the whole, my colleagues and I sometimes worry that credit union directors spend too much time focusing on fiduciary and operational- related matters. Ideally, we would like to see you talk a bit more at the strategic level in the board room. However, one area where we do see a great deal of variability--and perhaps a greater need to focus at the fiduciary level—is in the assessment process of the CEO. What does an effective or “constructive partnership” between the board and your credit union’s CEO look like? That is, what kind of relationship do you have—and will you forge in the future—with your CEO? What are the appropriate operational and strategic boundaries? How, in the big picture, can you help your CEO be even more effective? What goals should you set for your CEO? Should your CEO’s goals be the same as the goals of the credit union as a whole—or should there be goals unique to him or her? Ultimately, what type of process is appropriate to provide an effective CEO assessment? There are real challenges in the answers to these vital questions. In Quantum Governance’s work, we assess credit union boards nationally, and less than 30 percent of board members we’ve surveyed think they effectively establish performance goals for their CEO. And only slightly more (35 percent) think they are effective in holding their CEOs accountable for such goals when they have been established. If my math is correct, that means only about 10 percent of credit union boards perceive they are effectively holding their CEOs accountable to an agreed-upon set of performance goals! To maintain a truly effective constructive partnership with your CEO, a board must thoughtfully and collectively work to build, foster, maintain and improve the relationship. A regular and genuinely valuable assessment process of the CEO is vital. It can provide: a more objective and comprehensive analysis of your CEO performance, a higher degree of focus on key credit union goals, efforts, and initiatives, an in-depth look at important leadership strengths – as well as challenges, a means for your credit union’s leadership to get “un-stuck,” a way to reframe key governance, leadership and strategy issues, baseline data to measure future efforts and progress, and new ideas, insights and ways to move the credit union forward. And yet, sadly our surveys show that a third or more of credit union board members feel they are doing an “ineffective” or only “adequate job” of using a quality process that allows all board members to provide input on the CEO’s evaluation. Such a process is a vital element in maintaining a good relationship with your CEO over time. In addition to ensuring that all board members have an opportunity to provide input into the CEO assessment process, here are other options to seriously consider: For example: 1) you could also ask your CEO to complete a CEO self-assessment tool aligned with the question set board members use to provide feedback; (2) you could ask for 360-degree assessments by direct reports to the CEO; and, in appropriate instances, (3) you could ask for mentor or coach assessments of the CEO. The immediate goal is to provide valuable feedback to the CEO that accurately assesses his or her efforts and gives genuinely helpful guidance to improve overall performance. The ultimate aim is to build an effective partnership that will help your CEO and, through his or her efforts, actively assist the credit union and its members to succeed. In many respects, there really is no higher calling before you as a board. Previous Next
- 'Quantum' Board Engagement | Quantum Governance
< Back 'Quantum' Board Engagement Michael Daigneault Jul 22, 2014 Six questions to help you more fully get your board engaged The board meeting is a good place to start working on board engagement, as I discussed in my last Good Governance column . However, you’ll need to go well beyond the board meeting experience to really make headway on director engagement. At Quantum Governance, L3C , we recommend answering these six key questions to help you more fully engage your directors in their work toward fulfilling the mission and vision of your credit union: Are your directors emotionally connected to your mission? The roots of the credit union movement are deep. For more than 100 years, credit unions have been providing quality financial services to their members. Are your directors aware of and committed to the cooperative principles that drive the movement? Are they committed to democratic member control? Voluntary and open membership? Cooperation among cooperatives? Do your directors understand what they can do to help? Does each board member have a sense of the value that are contributing? But for their active contribution, how would the work of the board and credit union be less? This question also reflects on the very purpose of board meetings and how their agendas are crafted. Don’t just focus on telling or reporting – this tends to foster a type of passive oversight from your directors. Are they working at the appropriate skill and ability level? Nothing dampers someone’s interest more quickly than feeling like they’re either over- or under-whelmed with the task at hand. Be sure your directors are adequately briefed and appropriately assigned to the right committee or taskforce, one that matches – and engages, their interests, skills and abilities. Are you sustaining their involvement throughout the year? This question extends beyond your monthly meetings. Are directors actively engaged between board meetings? Are you exposing your directors to other aspects of your credit union’s business? Are they attending outreach and community events? Are they serving as enthusiastic ambassadors and representing the credit union with real pride? Do you and your colleagues challenge yourselves to improve everyone’s performance? Not surprisingly, the notion of continual learning and improvement is often a key to sustained engagement. Stagnation begets stagnation. This is particularly a key issue in the credit union community where board turnover takes place slowly. As such, it is even more important for you and your fellow directors to participate in a regular process of self-evaluation and improvement. Is your leadership constantly building the web of relationships you need to succeed – both internally and externally? Focus on the resources available to you and your directors – from members of your senior management team to community resources and national educational resources like those offered by CUES. There are about 7,000 credit unions in the United States and more internationally. It’s safe to say you are not alone in your experiences and questions. Reach out. Actively engage, share what you have learned and keep learning from others. The rewards will be plentiful – for you – for them – and for your members! Previous Next
- Creating a 'Wow' Credit Union Board Meeting | Quantum Governance
< Back Creating a 'Wow' Credit Union Board Meeting Michael Daigneault Aug 24, 2014 How to Take Your Meetings to the Next Level Consider a typical board meeting. There is a call to order, some chairman and CEO remarks, committee reports, a call for old and new business, then adjournment. Did you ever realize a vast majority of what is said aloud in the meeting is exactly the same information provided in written form, begging the question: Was that a "board" meeting or a "bored" meeting? As financial services have evolved from a staid, conservative industry to a highly competitive sales and service focused marketplace, the conversations happening in the boardroom have not experienced a parallel transformation. As I work with credit unions, I challenge them to ask themselves: Are we addressing the right questions in the board room? If you answered no, the board might be stuck at the dysfunctional or functional level of governance. How should we think or act differently? A new approach can help the board evolve to the responsible or exceptional level of governance. Here is my vision for leaving routinized (unconscious) meetings behind and evolving to "wow" (enlightened) meetings: Old New Top-down information exchange Dialogue and interaction Focus on data and past results Focus on thinking and future initiatives Approval of numerous administrative items Consolidated consent agenda Oversight and review Imagining and innovating One key component is the consent agenda. Instead of listening to a series of operational and financial reports, board members are expected to read a packet of information prior to the meeting and come prepared to approve numerous items with one concise motion. This frees up the agenda to focus on planning and strategy discussions. Safety and soundness will always be a priority, but while the fiduciary role of the board is still necessary , it is no longer sufficient to lead a credit union. As with most changes, the trick is in the transition from old to new. As you move toward this new model, some people will adapt quickly while others may find it difficult to leave their comfort zones. One excellent resource I’ve found helpful over the years is a book by William Bridges called “Transitions: Making Sense of Life’s Changes” and its companion “Managing Transitions: Making the Most of Change.” Credit union leaders that have the courage to forge ahead will benefit by having a productive, engaged and focused board, creating boundless opportunities for the future. Previous Next
- Board Engagement Needs A Boost | Quantum Governance
< Back Board Engagement Needs A Boost Michael Daigneault May 27, 2014 Strategies to use in your monthly meetings In a recent set of surveys conducted by my firm, Quantum Governance, L3C , only 42 percent of credit union board members across the United States thought their boards were “effective” or “very effective” in engaging their directors. Sadly, this means more than 50 percent of directors said their boards were only “adequate” or even “less than adequate” at engaging the full board. What is really going on at these credit unions that is not engaging for a critical mass of board members? My team and I actually review hundreds of credit union board agendas and meeting minutes annually. Based on this, I can understand why directors are walking away feeling less than fully engaged. Many agendas are fairly routine, with some opening remarks by the chair, a fairly detailed report by the CEO, followed by financial reports, committee reports and maybe (if you’re lucky) an update on the business or strategic plan. Reports, reports and more reports. The tone tends to be formal. Month to month, many agendas don’t vary much. The focus frequently tends to be on “telling” the board information, providing fiduciary oversight and holding credit union management “accountable.” Sound familiar? In my last Good Governance column , I encouraged you to begin to expand your agendas beyond merely the fiduciary—to engage in strategic dialogue, early and often. But, let’s go further. Let the tone of your board meetings vary to include not only formal informational and oversight elements, but also genuinely engaging, persuasive and influential opportunities at the highest levels. (To be clear, I am not suggesting that the board be invited to provide input at the operational or tactical level.) Author Peter Senge provides a very helpful spectrum of the levels of dialogue in a meeting context: At the lowest level of engagement, he suggests that dialogue focuses on telling – telling the board what has been done or what’s about to be done. At a slightly higher level of engagement he suggests that the focus shifts to selling – or advocating an idea to the board. Higher on the engagement spectrum is the notion of testing – testing out an idea with the board to identify its position. Beyond that, Senge urges that there be opportunities for what he terms consulting – or genuinely asking the board’s opinion, with the idea of improving or modifying an idea. Lastly, and at the very highest level of engagement, he recommends discussions designed to encourage participants to co-create an idea or the key elements of an initiative. Vary your agendas based on future needs and important trends. While there has to be some telling and selling, talk also about some element of your strategy each and every meeting. Make time to engage in authentic dialogue. Focus not only on the necessary elements of oversight – but also make sure questions are asked that invite input from board members at the testing, consulting and—when appropriate—co-creating levels of engagement. This means regularly engaging the board in vision, mission and forward-looking questions that everyone knows will make a real difference as your credit union moves forward. Previous Next