Search Results

< Back Is Your Organizational Success An Accident? Gisele Manole & Jennie Boden Nov 22, 2022 New study suggests where to look for the answer. We’ve been studying credit union governance for more than a decade now and amassed mountains of data on credit unions of all asset sizes and from all over North America. Perhaps the most frequently asked question we hear is some variation of, “How do we know when we’re getting it right? Our assets are increasing, and our membership is growing so we must be governing ourselves well. Right?” As we prepare to publish The State of Credit Union Governance, 2023 Report, we looked closely at the data to see if it was clear to us what the key indicators were that a credit union was governing itself well—that as a credit union’s assets and membership grew, the organization’s governance practices were evolving too, both in terms of meeting changing regulations and best practices. What we learned focused our attention on four things: 1) board members meeting their roles and responsibilities; 2) members of the credit union’s governing system (board and supervisory/audit committee members and senior leadership) meeting high accountability measures; 3) strong levels of volunteer engagement; and 4) building and maintaining a leadership culture of trust. We found there is a significant positive correlation among each of these four areas of governance—meaning that if a respondent reports that their credit union is highly effective in one of the governing elements, they generally report that they are highly effective in the other three elements, too. Therefore, the four elements—accountability, board member roles and responsibilities, engagement and trust—are inextricably linked and together provide tremendous insight into the strength of your credit union’s governance. Figure 1: The Four Elements of Good Governance These findings identify the four elements as likely keys to unlocking the secret to good governance and creating a high-functioning board. In addition to pinpointing areas of focus, our findings suggest that actions to improve the effectiveness of one of the four elements may lead to improved effectiveness in the other three elements. So, as we begin to more succinctly answer the question, “How do we know when we’re getting it right?” we can look to these four areas of governance for some indication of whether your credit union’s board and executive leadership are “getting it right” or not, and whether further study is necessary to identify which element of your governance needs your focus to ensure the continued success of your vision and mission. Previous Next

< Back Get Your House in Order—Now, If Need Be Michael Daigneault and Jennie Boden Aug 30, 2018 There is no ‘wrong’ time to deal with fundamental governance issues. We read with interest a recent article about governance that discussed the importance of boards not addressing their governance issues “in the wrong places at the wrong times.” The authors suggested that many times boards discuss governance issues during precious time in sessions dedicated for other important work—such as strategic planning. They posit that this is distracting and a poor use of time for those taking part and to the goals of the session. They have a point. On one hand, the limited time a board spends together should be treasured– and treated as a resource to be judiciously and appropriately allocated. Strategic planning discussions with management need to happen and are a vital aspect of a board’s role. But on the other hand, if your credit union’s governance challenges are so real that they are clouding your ability to strategize or otherwise effectively lead, there may not be a “wrong” time to deal with them. If governance discussions arise in the context of other discussions, unresolved issues may exist that need to be effectively dealt with ASAP so that governance differences or issues don’t unduly interfere with how you successfully execute your governance roles and responsibilities—strategic planning included! A Need for Conversations on Governance Our recent study, The State of Credit Union Governance, 2018, Five Data-Driven Recommendations for Future Success , found evidence that a good number of credit unions are struggling with governance issues. Of our six key findings , two help tell the story of when to discuss governance: 1. Board members and CEOs frequently differ on their perceptions of governance, with board members and CEOs differing on 84 percent of the survey’s key questions, agreeing on only 16 percent of them (with the exception of the supervisory committee survey section, where more agreement was found). 2. CEOs and senior staff perceive lower levels of trust, with just 27 percent of senior staff and 25 percent of CEOs reporting that their boards were very effective at building a leadership culture of trust, compared to 53 percent of supervisory committee members and 44 percent of board members. We see evidence of these challenges and more in our work with credit unions. Time and time again, we’ll incorporate a strategic and governance assessment and a planning session into one engagement. After all, what could be more strategic than getting your governance house in order? At a recent strategic planning session, a client spent some time in a facilitated executive session, building trust between the board and the CEO. From our point of view, this discussion was probably one of the most important, strategic steps this credit union could take. More and more credit unions are opting to include a strategic goal on governance in their strategic plans. This is not to suggest that you should completely eclipse your normal agendas for all things governance. The article’s authors made some relevant points, and we agree wholeheartedly with most of their recommendations: Dedicated time for governance training is a must. Focus on board member education and governance issues—and to this we would add strategic matters—at every board meeting. Give permission to each other (not just to the CEO or senior staff) to check each other (appropriately) when boundaries are crossed. And as already mentioned, we could support the idea that governance issues not take over every meeting unless the governance issue is so fundamental (i.e., a loss of trust between the board and the CEO; a lack of engagement among board members; critical disagreement on roles and responsibilities, etc.) that it would derail all other discussions or progress. If this is the case, you must have the courage to change course. Agendas are important. Timelines, yes, are meant to be kept. But, remember the saying, “culture will eat strategy for breakfast,” and it’s true. Get your governance house in order. Now’s the right time to do so! Previous Next

< Back Key Outcomes And Lessons Learned From A Board Renewal Effort Jennie Boden and Dr. Alexander Stein of Dolus Advisors Jan 31, 2022 An analysis of Hudson Valley CU’s work to revise key governance processes. Quantum Governance and Dolus Advsiors are pleased to offer the following key outcomes and lessons learned from our work with $6.1 billion Hudson Valley Credit Union in revisioning and revising their nominations process. (For more background, read the feature story detailing the work we did with Hudson Valley CU.) Key Outcomes The nominations sub-committee learned it could be nimble, coalesce around change and have a significantly increased impact on the future of the Hudson Valley CU board and supervisory committee. In the end, the members were proud of the changes they implemented and the outcome of their work. And, importantly, they served as a model on how to welcome and adapt to change for other elements of the governance system at Hudson Valley CU. There was an increased level of trust attained between members of the nominations sub-committee and the CEO—primarily through the CEO’s participation in the nominations process, but also as an extension of the still-developing constructive partnership between the board, supervisory committee and CEO/management. All the volunteers—board and committee members—gained a new and enhanced understanding of their capabilities and, despite initial trepidations, developed a significantly greater appreciation for the upsides of transformational change. The previous governance committee and the old nominations committee combined in an integrated model to become the new governance and nominations committee. This provides the credit union with the structure, know-how and horsepower to better meet its members’ needs given its size and complexity. Lesso ns Learned Include everyone in the discussions, right from the start—board members, supervisory committee members, nominations committee members, the CEO—when you’re a) discussing why and how you want to change the nomination process; and b) what the ideal board or supervisory/audit committee of the future looks like for your credit union. Cast your net wide for new candidates and volunteers. Ensure that every candidate attaches a resume or curriculum vitae to their submitted application. And be sure that you update your application to obtain the information that you need—in alignment with your call for candidates. Don’t assume that your current board and supervisory committee members are the right members for the future. Vet them as thoroughly and fully as you vet your new candidates—and against the same requirements. Prepare both the volunteers on your nominations committee and your incumbents for navigating emotionally hard decisions. Meeting the requirements of creating the board and supervisory/audit committee of the future may necessitate the departure of a long-term volunteer colleague. Ensure that the roles and responsibilities for your volunteer positions are clear, including the time commitment. Even with all the communications shared with the Hudson Valley CU candidates, several candidates expressed surprise at the level of commitment required after joining. It doesn’t have to be perfect right out of the gate. Not every tool you develop or innovation you incorporate will immediately work flawlessly. And that’s okay. Keep experimenting. One example: We developed a scoring sheet for the nominations sub-committee that ended up being more of a hindrance than a help. It was quickly set aside, and the members of the sub-committee moved on. Balance urgency and patience. A member of the governance and nominations committee admitted wishing they had developed an associate board member program years ago. But there had been resistance, and it was shelved. When the proposal was introduced last year as a part of these innovations, the practice was enthusiastically adopted. Change takes time. Prioritize equity, diversity and inclusion. Ensure that your credit union is aware of how systemic inequalities adversely affect society—and your credit union. This conscious commitment to equity will enhance organizational decision-making, lead to greater diversity around the leadership table, and help directors and executives alike develop a more inclusive, shared understanding of what everyone has to say and contribute. Alexander Stein, Ph.D . , is founder of Dolus Advisors , a consultancy that helps leaders address psychologically complex organizational challenges. Previous Next

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

< Back What Key Factor May Be Working Against Your Interest in Raising Board Engagement and Accountability Jennie Boden Aug 7, 2024 Discover the hidden factor sabotaging your board's engagement and accountability, and learn how to address it effectively. In 2023, we identified four elements of good governance in our State of Credit Union Governance Report : 1) board members fulfilling their roles and responsibilities; 2) engagement; 3) accountability and 4) trust. Our study found that these four elements were VERY strongly correlated, meaning that if one of these elements was weak within a board, it was very likely the other three were as well; the reverse was also true. If a board was scoring well in just one or more of these areas, then it’s likely that all the elements were markers of a high-functioning board. We were thrilled. The findings were so strong (with correlations equal to or greater than 0.79) that it now meant that we could identify the weakest link among our clients, focus on that element, and the other elements would become stronger as well. But that marked just the beginning of our work. How does one build engagement, accountability and trust? And why might these scores be low in the first place? The study also found that among all four of these elements, engagement was the lowest across all respondents. Our work started to change after the release of this study and when we began assessing our clients through this very lens: How are our clients fairing among these four elements? And which of the four are the lowest scoring among them? In particular, I’ve been thinking a lot lately about the element of engagement. I once wrote about the phenomena of workplace bullies, noting that “The [Workplace Bullying] Institute reports that 30% of all adult Americans have been bullied at work. More than 48.6 million of us have been bullied on the job – but a total of 76.3 million workers (or 49% of all Americans) have been affected by workplace bullying. That means those workers have either been bullied or witnesses to it, which has its own impact, too. Sixty-seven (67%) of the bullies in our workplaces are men and 33% of them are women, and same-gender bullying accounts for 61% of it all. In fact, I was prompted to write about these bullies after being bullied myself by a colleague in the field. And recently, I was on the receiving end of some unpleasant behavior in a client retreat, and I found myself so stunned, I could do little more than tilt my head in disbelief, thinking, “If this director responds to me, an invited guest, in this manner, how might they respond to their colleagues with whom they disagree?” After the room had cleared, I shared my thoughts with the board chair and CEO: “This is likely the kernel of our low engagement among the directors. You have a bully in the boardroom, and the other directors are afraid of being called out by the individual in question.” Since then, I’ve started paying attention to how many “bullies” sit on boards with low engagement scores. And it’s a lot. And guess what? That number also correlates with a low level of accountability, meaning that no one is calling out the bad behavior. No one is saying, “Knock it off,” or “Don’t talk to John or Sally or whomever that way; that’s against our values,” or “If you continue to use foul language in the boardroom, there will be repercussions.” And those are extreme cases. Sometimes the uncivil behavior can be as subtle as the rolling of eyes, dominating the dialogue or dismissing a colleague’s perspective. And very few are saying a word. One of the board chairs with whom we worked was actually being bullied by their CEO. This board chair went so far as to conceal the bullying in an effort to protect the rest of the board, which gave way to a higher threshold of tolerance for the uncivil behavior and allowed the CEO to bully the staff too. But boards and cultures can change. I’ve seen it happen. I’ve seen a board that tolerated a bully for nearly two decades move swiftly – within a matter of weeks – to address (appropriately, professionally and sensitively) the inappropriate behavior of one of their own. Think of the message that this significant shift sent to the board as a whole and to the staff: these are our values; this is what’s acceptable and what’s not acceptable. If there’s a bully in your midst, solve for that to level up your engagement and accountability. 2021 Workplace Bullying Institute U.S. Workplace Bullying Survey. Single Page Results Flyer. https://workplacebullying.org/ . Retrieved on December 5, 2021. Previous Next

< Back Defining Consensus Michael Daigneault Nov 16, 2022 'Five finger consensus' allows all directors to weigh in on key decisions. It seems that almost every credit union we’ve been working with lately has been struggling with the idea of consensus. They all seem to want it, most of them claim to be experts at coming to it, and yet few of them know what it really means. One of our favorite facilitation techniques is what Michael Wilkinson calls “five finger consensus.” It goes like this: We’ll call a question, something like “Moving forward, XYZ Credit Union should charter a Governance and Nominations Committee.” Next, we charge the board members to vote their minds: “Hold up five fingers if you strongly agree that your credit union should charter a Governance and Nominations Committee; four if you agree; three if you can live with it; two if you disagree; and one finger if you strongly disagree.” (At this point, we’ll tell them to be mindful of which one finger they hold up, which is typically greeted with a round of laughter.) Then, we’ll ask directors at either end of the spectrum—those who voted with one or two fingers or with five—to share their thoughts. After additional discussion, we’ll then re-call the question and the vote. Sometimes the vote will change, and sometimes it will remain the same, but in either instance, those who voted will have had the chance to express their thoughts, and if the threes, fours and fives are in the majority, then that decides the issue. Is five-finger consensus a formal way to obtain a board vote, you ask? Usually not, but it is an engaging way to take the pulse of the room, ask for input and discussion, and then call a vote—all of which is consistent with building a broader consensus. Could you apply the same process to your board discussions and votes? Absolutely. What is consensus? Merriam-Webster defines it as “a general agreement about something.” Consensus involves coming to an agreement to support a decision that is in the best interest of the whole. It affords everyone an opportunity to share their thoughts and opinions. Consensus, in the end, is a decision-making process informed by the shared wisdom of the group. It takes courage, humility and respect among all of the group’s members. It may require a measure of letting go for the greater good. Those who voted with only one or two fingers may be outvoted, and that has to be okay with them once they have had a chance to voice their concerns. When we facilitated the five-finger consensus recently at a board retreat, one attendee, who was taking a minority position, said, “I’m satisfied. I just wanted to be able to have the conversation, and we’ve done that.” Sometimes, people just want to be heard. Consensus doesn’t require unanimity. It isn’t talking through an issue again and again until 100% of you and your colleagues on the board are in agreement. Credit union boards are not held to the same standard as a jury in a criminal trial—come to a unanimous decision or end in a mistrial as a hung jury. If every director does not agree, that doesn’t mean a decision cannot be reached and the issue must be put on hold indefinitely. Consensus doesn’t mean you have to be ultra-polite, never disagree with your colleagues and vote accordingly just to get along. On the contrary, a measure of disagreement, in a respectful and appropriate way, is healthy for a board. In fact, we would be concerned if directors never disagreed. Boards that are in complete “harmony” and never experience conflict or disagreement are just as dysfunctional as those that experience complete “anarchy” and find themselves in total conflict. There should be an appropriate degree of conflict, or challenge, on your board, particularly when you are wrestling with difficult strategic issues. That’s why we have boards. It would be much easier (and more efficient) if a credit union were simply run by its CEO or a single trustee. But society is not built that way, and neither are our organizations. We value diverse thought and input. Our organizations are stronger because they rely on a system of checks and balances. If you are not challenging each other—if there is no one on your board voting with one or two fingers and offering their thoughts along the way—what true value are you offering to your colleagues on the board, to the CEO and his or her management team—and ultimately to the members you represent? Just be sure to disagree in an agreeable way, and remember that the idea of consensus, as the Quakers would say, is ultimately about “unity, not unanimity.” Previous Next

< 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

< Back An Antidote For Shifting Sands Michael Daigneault and Jennie Boden Sep 24, 2019 Your strategic planning process is as important as the plan and should be ongoing. Recently, Henry Meier, SVP/general Counsel at the New York Credit Union Association penned a blog addressing “ Why D.C.’s Policy Pronouncements are the Key to Economic Growth .” In it, Meier discusses the shifting sands of today’s political environment, as well as the state of our economy and how “We are now more dependent on Washington than ever before.” The business environment in which your credit union operates is, to say the least, complicated. Beyond the challenges that emerge from Washington, you are likely faced with growing competition, shifting demographics, technological disruption, as well as the potential for an economic slowdown or recession. What else would you add to your list? Challenges with board succession? A CEO transition? A core conversion? How prepared is your credit union to meet these challenges? Do you have a solid strategic plan in place? What about your process? We think the process, in these turbulent times, is nearly as important as the plan. There are four common strategic planning processes that you and your colleagues can adopt: A traditional planning process would have you identify where your credit union is today and where you want to be in the future (for example, three to five years from now). Then, you create a disciplined timeline, set of strategic goals, milestones, and financial and other resources needed to get there. The only problem with this process is that stuff happens. Presidents implement tariffs. Timelines for core conversions drag on. You get the point. Scenario planning allows you to plan for a number of different potential futures or scenarios on a contingency basis. The challenge here is that it’s much more time-consuming because of all of the time required to create and consider alternative scenarios (and accompanying plans)—many of which are sometimes necessary, particularly in an unpredictable world in which very different futures may unfold. In phased planning , it’s understood that the world may change quickly and, therefore, it’s difficult to plan too far into the future. Accordingly, the phased approach tries to break up the strategic planning process into manageable periods (or phases) of time. The downsides to phased planning are that you can lose sight of longer-term goals and default to a form of operational planning. Cyclical planning combines best practices from all three of the above methods—It’s “real-time,” “continuous” or “ongoing” strategic planning. To quickly put you at ease, cyclical planning does not mean that you are re-creating your strategic plan at every board meeting or even every year. What it does mean is an important change in the mindset of both your board and your management team. It means that strategic planning is regarded not as something separate from the board’s governing duties, nor is it separate from management’s responsibilities. It means that strategic thinking and planning are core elements of your board’s and management’s responsibilities. It means, therefore, that your board and management are holding meaningful strategic discussions on an ongoing basis—throughout the entire yearly cycle of board and committee meetings. (And that these discussions go beyond merely an update on how you are doing on the metrics.) It means there is no designated start and end to “the plan.” It is thoughtfully considered—and modified if need be—over time. It means that as the sands shift in Washington, China or in your backyard, your credit union’s board and management team are prepared to react—quickly and in “real time” to meet the credit union’s changing strategic needs. Previous Next

< Back Millennials Are Many Things, Including Your Future Board Leaders Michael Daigneault and Gisele Manole Jun 26, 2018 Getting to know them can aid your recruiting. If you had a crystal ball that allowed you to peer into the future, my guess is that a number of you might use it to—among other things—help ensure your credit union’s success. Critical to any such success, however, is the answer to the question: Who sits on your Board? Perhaps one of the most alarming things we at Quantum Governance discovered in our research for The State of Credit Union Governance 2018 was that a full 46 percent of respondents describe their credit union’s effectiveness at finding, recruiting and nominating new board talent as only adequate or less than adequate. The ongoing challenge to attract the best talent to serve on your board is as old as it is evergreen. So, while a crystal ball may be helpful in identifying who holds the keys to your credit union’s future, it likely falls short of providing you with a practical means to actually recruit future board members into service—particularly the younger generations of potential board members. As anyone who has endeavored to recruit talent to their board can attest, you have to know a thing or two about who you’re looking for. So who are your credit union’s future board leaders and how might you connect with them? As the large Baby Boomer generation (1946-1964) retires from board service, Generation X (1965-1980) does not have the numbers to fill their seats. As such, the Millennial generation (1981-1996) will have to be invited to serve in leadership positions as soon as possible. Don’t underestimate them...many are ready to serve effectively right now! Millennials are, of course, a unique generation and it’s more important than ever to understand the types of things that set them apart from previous generations. They are most effectively recruited by...other millennials. You should use any millennial board, associate board, board committee and staff members you may already have to actively recruit effective new young leaders. You can also reach out to connected members of the credit union and to key players in business, government and nonprofit organizations in communities where your credit union operates. Even if you don’t know them yet, find a way to reach out, make new friends, and actively introduce your credit union to them. They are the most ethnically diverse generation in U.S. history. We often hear that boards are striving to look more like their membership. The millennial generation embodies the diversity needed to ensure that members are properly and culturally represented. They are early adopters and technologically savvier than previous generations. As your membership migrates online, so do many of your products and services. Engaging your members through contemporary, user-friendly, and secure mobile and digital interfaces will help grow your credit union and attract younger members. They are optimistic about the future and educated. Positivity fuels productivity. Millennials see possibilities and have an eye trained on the future—which is exactly where you need to set your sights in order to succeed in fulfilling your credit union’s vision and mission. Millennials are often keenly interested in professional development opportunities. You can suggest that board service is certainly a great one! They are interested in helping people and supporting causes. To date, many millennials have been relatively unattached to religion or organized politics (although that may be changing). This leaves a critical mass of them open to the social purpose and mission-centered credo of credit unions. Sure, focus on excellent products and services, but don’t underestimate the power of “cause” and the good work a credit union can do. Ultimately, inviting new ideas and fresh thinking to your board meetings will have consequences. Appreciate the renewed energy and passion it brings. Appreciate also millennials’ talents. Be patient as you work through the challenges and questions that will also arise. As you bring on new board members, it’s important to remember that a robust orientation to your credit union and board service is essential to a successful transition. We are confident you will find that millennials are a vital human and leadership “investment” for your credit union that will pay off extremely well now—and far into the future. Previous Next

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

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

< Back 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