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< 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 Governance Committee – If You Don’t Have One, Get One! Caitlin Hatch Apr 30, 2020 Governance Committees can help ensure boards are running smoothly. Every now and then we are asked why governance committees are such a good idea, and it’s a good reminder to us not to take for granted that everyone knows or even shares our opinion. But, we think that they could be the most important committee your organization can have, so, in the immortal words of Toy Story’s Woody Pride, “If you don’t have one, get one!” and if you do, make sure it’s the best it can be. We say that because the role of the Governance Committee is multi-faceted and goes right to the heart of the effectiveness of your Board of Directors. And not just how they operate, but how they work together with the CEO or Executive Director, as the case may be, as well as the Staff. Governance Committees are authorized by the Board to be responsible for ensuring that the organization’s bylaws, key policies and practices are in optimal form – and that they stay that way. The reason for this is so that the Board can then do its work as efficiently and effectively as possible. We have spoken to many Boards whose members do not have a clear, shared agreement about just what the role of the Board members is, and how they should be carrying out that role. The reason is generally a simple one; it’s not that they don’t care, it’s that everyone comes to a Board and either assumes they know what a Board member does, or they bring their past experience with them and carry on as before. So – with everyone acting in a good faith – but often different — understanding of the Board members’ role, it’s easy to foresee how inefficiencies — and sometimes even hard feelings – can develop. And it generally all stems from everyone trying to “do the right thing.” It’s fairly well known that one of the chief responsibilities of a Board is to hire and manage the person who is delegated the authority to run the organization on a daily basis. But it is seldom recognized that the Board also has the responsibility to manage itself. Governance Committees to the rescue! They help to clarify – and codify — the role of the Board member, what Board Officers should and could be doing, whether the Board has the right committees and what those committees should be doing, and how well everyone is living up to their roles and responsibilities. Sometimes, Governance Committees are also tasked with overseeing nomination duties — held responsible for the strong succession and development of the Board by focusing on Board member recruitment, nominations, orientation, training and evaluations – of individual Board member performance and of the performance of the Board as a whole. Organizations that have active Governance Committees ultimately have more engaged Boards, with their directors sharing a clear understanding of the expectations for the Board, its members, their committee work and, ultimately, and most importantly, the results they are achieving. The clarity of purpose and responsibility saves the Board from distractions based on differing perceptions. A Governance Committee can help your Board maintain high standards for performance and accountability for results, which, at end of the day, is the whole reason for being on the Board in the first place. Making sure your organization’s core governance functions are high performing is important under normal circumstances, but in challenging times like these, it is even more so, and Governance Committees can minimize the risk an organization faces if, or when, the unforeseen occurs. Sadly, today, that is more important than ever. Caitlin Hatch previously served as a senior consultant with Quantum Governance and has worked with credit unions for the past eight years, focusing on governance and strategic planning. Prior to that, she served for 25 years as general counsel and corporate secretary for the largest anthracite coal company in the United States. Previous Next

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

< Back Weaving a Single Garment of Destiny Michael Daigneault Jun 23, 2020 The key threads include equity, diversity and inclusion. All three are needed for the best leadership and governance for your credit union. The recent events in the United States—no, this time, not COVID-19—the recent events surrounding the urgent call for equality led me back to Martin Luther King, Jr.’s letter from a Birmingham jail . I often return to this brilliant piece of literary history, from which I find great guidance and direction, but never so much as I have recently. In his letter, dated April 16, 1963, he wrote: “We are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly. Never again can we afford to live with the narrow, provincial ‘outside agitator’ idea. Anyone who lives inside the United States can never be considered an outsider anywhere within its bounds.” Never have truer words been spoken of these, our United States, or indeed the world. But we should also take an important lesson from these words for the organizations that we lead. I hear so much lately about organizations and boards—particularly in the credit union space—taking up the cause of “DEI,” or diversity, equity and inclusion. In fact, in our 2020 State of Credit Union Governance , diversity was listed as the highest priority when recruiting new board members among those surveyed. As those at BoardSource , a national organization working to empower boards and inspire leadership, say, “As the decision-making body at the highest level of organizational leadership, boards play a critical role in creating an organization that prioritizes, supports and invests in equity, diversity and inclusion.” And I couldn’t agree more. But, it’s important to know what these three terms really mean. (Note: BoardSource re-orders the three from the usual “DEI” to “EDI.” Quantum Governance believes that this is actually the appropriate order, given that the notion of equity is a broader concept that underlies both diversity and inclusion.) And, while they are often used interchangeably, they have very different meanings: Equity is a conscious and thoughtful awareness of how systemic inequalities have affected our society, individuals and all those an organization serves. As stewards of the public good, all social sector organizations (regardless of their exact mission) are called on to embrace and celebrate the inherent worth of all people. Boards and credit union leaders need to play a vital role in understanding this context. Deeply appreciating the fundamental concept of equity creates powerful opportunities to deepen an organization’s impact, relevance and the ultimate advancement of the public good. Diversity is the mix of people involved in leading, staffing, volunteering and moving forward the mission of your credit union (or any group for that matter). It is focused on a range of folks from different backgrounds, with varied personal characteristics or attributes who are engaged in the work of the organization as board, staff, volunteers, vendors and members, as well as the people and communities your credit union serves. Inclusion is about authentically valuing the benefits that diverse people bring to the organization. It is about the conscious and unconscious culture of the credit union and how it values (or not) the contributions that “everyone brings to the table.” It frequently describes how people from a spectrum of backgrounds are genuinely woven into leadership, operations and membership of the organization, how their perspectives are genuinely heard and valued, as well as how their needs are thoughtfully understood and respected. Therefore, Equity is embracing, celebrating and respecting the essential worth of all people and ensuring that our common humanity is honored. Diversity is getting a genuine—and expansive—mix of people at “the leadership table” or within a group. It does not sacrifice quality or competence on your board. Indeed, it is designed to enhance it. Inclusion is a shared understanding to authentically listen, to actually hear and justly value what people have to offer, contribute and say. And, all three are needed! Without each of them working together, one supporting the other, your credit union’s governance and leadership will fall short of where it surely needs to be. Previous Next

< Back Moving Beyond The Strategic 'Moment' Michael Daigneault and Jennie Boden Sep 27, 2016 Incorporate strategic planning and thinking into your routine discourse. When more than 30 percent of our clients describe themselves as “less than effective” at something, we sit up and take notice. And that’s exactly how (and how many) of the board members and CEOs we work with describe the challenge of articulating a compelling future vision for their credit unions. Not having a future vision for your credit union is a genuine problem, but one that can be overcome (though not easily, or a third of our clients wouldn’t be struggling with it!). Is your credit union challenged with crafting or updating the foundational components of your overall strategic plan—vision, mission and strategic goals—as well as the more specific strategic objectives and metrics undergirding them? It's worth the struggle to get your future vision right. This is much more than just a convenient tagline or agreeable-sounding statement in your annual report. The conscious or unconscious future vision that a board and senior team hold in their heads has real consequences. Crafting a clear and effective path forward that will truly benefit members is among the most critical and nuanced challenges you will collectively undertake. Yet many boards and executive teams spend less time thinking about the consequential strategic issues facing their credit union than they do on small changes to the loan-loss ratio, car loan volume or even on a single member complaint suggesting that the carpet needs to be replaced in a branch. We recently facilitated the CUES Director Development Seminar in Santa Fe, New Mexico. When we asked the 100-plus attendees who included strategic discussions regularly on their board meeting agendas, one brave soul posited, “Well, we have an agenda item called the ‘strategic moment.’” Though the room spontaneously filled with laughter, the speaker was quite serious, and everyone knew it. Many other attendees may have recognized that by including such a “moment” on the agenda, their colleague was likely well ahead of their own routine meetings typically filled with data-intensive, financial and fiduciary oversight reports. Veteran directors may recall the days when their credit union was just forming and their role was to pour over financial statements, do cash counts and fill the void that a lack of professional staff created. Today the director’s role is quite different. Unless your credit union is very small or in start-up mode, you rely on professional staff to brief you on financial and fiduciary reports. You need to provide effective oversight, hold staff appropriately accountable—and then move effectively to your strategic responsibilities that will help propel your credit union to flourish into the future. In that spirit, we recently developed a list of sample strategic topics for directors to discuss in board meetings, even just for 20-30 minutes. Not all of them are applicable to your situation, but they are the types of questions that can help you regularly exercise your strategic thinking muscles: What criteria would you use in considering—or rejecting—an offer to merge your credit union into a larger one? What types of risks does the evolution of payment systems foreshadow for your credit union? How is your credit union growing? How might you need to grow differently in the future? Even if your credit union is growing, is it genuinely improving members’ financial lives? What would the “ideal” board for the credit union you envision in the future be like? Do you have the right blend of directors for that future? What would the future focus be? What committees would the board have? What type of relationship would it have with your CEO and executive team? What type of relationship would it have with your members and the community? How does your credit union define its risk tolerance or philosophy? Are you too risk-averse? How does your credit union’s risk profile compare to peers? How should you balance ROA, risk and stewardship to members? How do you leverage your cooperative culture into a competitive advantage? Are there other success measures you should be looking at, beyond financial performance? We strongly encourage the board to work hard to fine-tune a strategic plan that includes clear vision and mission statements, strategic goals, objectives and metrics in constructive partnership with your committee leadership, CEO and executive team. After reaching a consensus on the features on the accompanying chart shown in blue, challenge your CEO and executive team to develop their organizational work plans to meet or exceed your agreed-upon strategic goals. But don’t stop there. Include regular and ongoing strategic thinking, discourse and potential changes to your strategic plan, if necessary, in board meetings throughout the year. Insist that your CEO and management team report regularly on the strategic metrics of success as you march toward achieving your strategic goals and objectives. Consider changes in the marketplace or your business environment regularly to assess whether anything needs to be fine-tuned, adjusted or even eliminated. Strategic planning and thinking are continual processes. Off-site sessions annually or every few years may be helpful to recalibrate your leadership’s thinking, but they’re not the end-all. The real work of strategic planning should be a regular feature of the discourse and thinking of the board and executive team—day in and day out, moving beyond the “moment” (though that’s a good start) to become the central focus of your most important deliberations. Previous Next

Research & Reports Research The State of Credit Union Governance, 2023 This report identifies four governing elements central to measuring good governance and what correlations exist between them. The State of Credit Union Governance, 2023 Download Report Research The State of Credit Union Governance, 2020 This report offers findings from 115 credit unions on Board structure, governance, leadership, strategy and decision-making. The State of Credit Union Governance, 2020 Download Report Research Should Credit Unions Pay Their Directors? This Report explores the state of director compensation and offers considerations when exploring paying board directors. Should Credit Unions Pay Their Directors? Download Report Research The State of Credit Union Governance, 2021 This report examines the impact of COVID-19 and increasing calls for DEI on the credit union community. COVID-19 and DEI: Revolution & Evolution in the Credit Union Community Download Report Research The State of Credit Union Governance, 2018 This report analyzes governance practices at 70 credit unions focusing on Board structure, leadership, fiduciary oversight and strategy. The State of Credit Union Governance, 2018 Download Report White Paper A New Model Based on Classic Principles This white paper presents discussion on a new approach to the credit union cooperative model. A New Model Based on Classic Principles Download Report

Committees Resources 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 Supervisory Committees Function Well, But... Just like CUs and their boards, supervisory committees must change with the times. Read More

How Can We Help You? General Inquiries A member of our team will reach out within 48 hours. Name Email Phone Message We'll respond to your inquiry within 48 hours. Submit Mailing Address 1001 Connecticut Ave, NW 10th Floor Washington, D.C. 20036 Operating Hours Monday-Friday 9:00 am - 5:00 pm ET For Media & Partnership Inquiries Gisele Manole, Chief Marketing Officer gisele@quantumgovernance.net Call Us 800.446.7453

Paul Dionne VP of Strategy & Lead Consultant Paul is a results-driven leader with a record of successfully promoting and nurturing innovation, growth and impact in a variety of contexts. With academic, global, and practical experience in governance, organizational transformation, and cultural anthropology, Paul brings a wealth of strategic thinking, research, facilitation and activation skills to his clients. Prior to joining Quantum, Paul served as Research Director at Filene Research Institute where he guided research design, execution, analysis, and the translation of findings into actionable insights. Paul helped conduct research, surface core findings and develop compelling content that supported organizational growth and transformation. Paul led the creation and delivery of research reports, keynote speeches, webinars, and closed-door engagements supporting credit union strategy; innovation; member experience; cultural alignment; operations; digital transformation; financial inclusion; and the future of financial services. Paul also served at Beloit College as their Associate Director of Student Success, Equity, and Inclusion. In this and other roles at Beloit College, he supported the development and implementation of institution-wide strategic initiatives, government and foundation relations, sponsored research, and equity & inclusion programs. Paul believes in giving back to his community and currently volunteers as Board Secretary for Rock Valley Credit Union . Paul received an M.B.A. from the University of Wisconsin-Madison. He pursued graduate studies in cultural anthropology at the University of North Carolina at Chapel Hill with a research focus on international development, nonprofit governance, and agricultural cooperatives in Indonesia. He received his B.A. from Middlebury College. Originally from Canada, Paul now lives in Wisconsin and cooks poutine at home for his family. Back

Strategic Planning Services Quantum Governance believes in a collaborative and iterative cyclical process between the CEO/Executive Management and the Board in developing a strategic plan for the fulfillment of your organization’s vision and mission. In addition to facilitating the strategic planning process, we can assist you in the following ways: Assessing and Reimagining the Planning Cycle Defining (or redefining) Your Vision, Mission & Values Identifying Strategic Goals & Objectives Contact us to learn more about how we can help you plan for the future of your organization. "An effective strategy drives your organization's mission by identifying what is possible, what is feasible and what is bold." Paul Dionne, Chief Strategy Officer

Resources Governance Learn More Strategy Learn More Research & Reports Learn More The Four Elements of Good Governance Learn More Board Succession, Composition & Renewal Learn More Supervisory/Audit Committees Learn More Leadership Learn More Committees Learn More

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