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Dr. Alexander Stein Founder & Managing Director, Dolus Advisors (a Principal in the Boswell Group) A licensed psychoanalyst, expert in human decision-making and behavior, and Adjunct Consultant with Quantum Governance, Dr. Stein serves as an advisor to CEOs, Senior Management teams and Boards across a broad array of industries on issues involving leadership, culture, governance, ethics, risk and other organizational matters with complex psychological underpinnings. Dr. Stein is also a passionate advocate for ethical and socially responsible technologies. Dr. Stein is widely published and cited in the business press and varied industry publications including Fast Company, INC, Financier Worldwide, Risk & Compliance, the Wall Street Journal, The FraudNet Report, among many others. A former monthly columnist for FORTUNE Small Business Magazine, CNN/Money, and CBS Business News covering the psychology of leadership and entrepreneurship, he currently contributes his expertise to Forbes focusing on the psychology of decision-making and unintended consequences in organizations and society. Learn More Back

< 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 to Do When Communication Styles Clash: Embrace It Jennie Boden Feb 18, 2019 Building a culture of inclusivity helps ensure each voice on your board is heard. Once when my firm, Quantum Governance L3C, was looking at some assessment tools that might help our clients, we spent the fall taking them for a test drive. We spent time looking at the DiSC profile , the CliftonStrengths assessment and more. In essence, we were putting our staff through some of the paces through which we often put our clients—boards of directors of credit unions, associations, foundations and other nonprofits. We use assessment tools with our clients with the intent to improve their ability to function as a team and increase their governance effectiveness. With these test drives, I learned a lot about myself and my colleagues. I learned that I like “contributing to a calm, stable atmosphere” and “working with people who genuinely care about one another.” And I definitely don’t like “dealing with angry, pushy or argumentative people,” or “having to argue for [my] point of view”—although I think my husband would likely disagree with that last observation. One of the personality tests called me “amiable.” The results of the tests helped me to understand some of the factors that motivate my behavior and the way that I communicate and interact with my colleagues, how they interact with me, and our own team’s dynamics. To this day, when one of my colleagues says I’m being “too soft,” I’ll simply reply, “Remember, I’m the amiable one.” It’s a common language and experience from which we can both draw. But it can be tough sometimes, can’t it, when personalities and communications styles clash? We all believe in the value of diversity. In fact, when we interview board members (and we interview a lot of them), diversity is one of the things that they feel their board is lacking the most! They believe that their boards (and their credit unions) would be better off if they reflected the diverse make-up of their credit union’s membership. And they are probably right. At Quantum Governance, we define diversity as the quality of being different or unique at the individual or group level. And yet, while we’re all going around valuing and actively seeking diversity, it’s the very nature of diversity that can cause communications challenges. My perspectives and the way I communicate are, by definition, different from the perspectives and communication style that my firm’s CEO brings to the table. First, the obvious: I am female; he is male. Second, I was raised in a small, rural town in Pennsylvania; he was raised, well, everywhere. He moved 25-plus times by the time he was 30. I was educated by liberals at UC-Berkeley; he, by the Jesuits of Georgetown. I studied literature; he studied law. I am a quiet, amiable communicator; he is larger than life. I like big, lumbering dogs (think Lab/Great Dane mixes!); he likes multitudes of small, cuddly pups. And yet, for more than 25 years, we have been working and collaborating happily and effectively together. And you, too, can work effectively with those who are vastly different from you. Instead of avoiding the challenges that will, by definition, arise from the diversity that surrounds you, embrace them. The true value of diversity is in what it brings us—the variety of thought, perspectives, context and experience. It helps us all—whether an entire credit union, its board or even an individual—grow and strengthen in ways that we never imagined. There is a twin pillar to diversity that will show you the way. It is the notion of inclusivity. When a diverse board, team or even diversity in a one-on-one relationship challenges your ability to communicate, work to build inclusivity—an environment where everyone genuinely feels included, supported, heard and able to contribute to the success of the whole. My father was a minister in that small rural Pennsylvania town where I grew up, and my amiable self was most likely born from his drilling into my head, “Try to understand the other person, Jennie,” which was his own definition of building inclusivity. When my communication style clashes with another, this is my go-to tactic. And I employ it all of the time. Communication styles clash because people are diverse. Ultimately, however, making a diligent effort to work effectively and even thrive in a diverse world will not only enrich you as an individual but strengthen your board and your credit union’s leadership. Previous Next

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

< Back Being Chair Is More Challenging Than You Think Michael Daigneault and Jennie Boden Jul 23, 2019 In addition to playing an important role in managing the CEO, the chairman also plays a key role in managing the board itself. When we work with credit union boards, and in particular with chairs, we’ll often start by asking the provocative question, “Should boards manage?” Immediately the resounding response, of course, is “No!” But when we ask our clients to dig a little deeper, to think a little harder about the important work they do to govern their credit unions, ultimately one brave individual will, in a quiet, tentative voice say, “Yes … ?” That response is often more of a question than an answer—remembering that the board is responsible for managing its one employee, the credit union’s CEO. Go further, we implore them. Deeper. The board is also responsible for managing itself—for managing the work of the board, or ensuring that it effectively and efficiently fulfills its solemn roles and responsibilities. And to that end, we consider the chair to be the “Board Operations Manager in Chief.” But how many chairs are fully prepared to take up this important mantle? If you are, or have been, the chair of your credit union’s board, did you go to school to learn how to be effective? Did you attend board meeting facilitation training? Get schooled in board meeting agenda design? Public speaking? CEO relations? You get the point. It’s been our experience that many board chairs ascend to the position feeling not quite prepared to take on all of these responsibilities. In fact, many of them don’t fully understand the full breadth of the chair’s responsibilities. Consider the following job description. Today’s contemporary board chair is responsible for: Crafting & Effectively Facilitating Meetings Set the agenda for board and executive committee meetings in concert with the CEO. Call to order and preside over meetings of the board and the executive committee. Encourage and expect full and robust participation of board members at meetings. Help to maintain a healthy balance between operational and strategic discussions. Building a Positive & Healthy Board Structure & Culture Appoint committee and task force chairs as well as committee members. This “appointment power” is perhaps one of the most important responsibilities most chairs have! Work with the governance and nominations committee (if you have one—If you don’t have one, charter one now!) to ensure appropriate and effective identification, recruitment and onboarding of new board members. Work with the governance and nominations committee to create a positive and effective board and board member process. Serve on the executive committee and as an ex-officio member of all board committees. Acting as Key Liaison With the CEO Act as a representative of the board as a whole, rather than as an individual supervisor to the CEO. Help to establish the strategic direction of the credit union, working in partnership with board colleagues and the CEO. Work with the treasurer, the directors and the CEO to oversee the credit union’s budget and support the development of and adherence to sound fiscal policies to safeguard the integrity of the credit union’s financial management systems. Optional: Have the power to sign, in addition to the CEO, on behalf of the credit union, all contracts authorized either generally or specifically by the Board. Setting & Modeling High Standards for Board & Staff Oversee efforts to build and maintain an exceptional governing board by setting goals and expectations for its members. Convening board discussions on evaluating the CEO and ensuring the effective negotiation of the CEO’s compensation and benefits package, as well as serve as a key conduit for information to the CEO. Acting as One of the Credit Union’s Chief Ambassadors Serve as the official spokesperson for the board among community members and the media, in addition to the CEO. Encourage board members to act as credit union ambassadors and encourage board member participation in credit union events, as appropriate. Inspiring & Engaging the Board Inspire a shared commitment to the credit union’s vision, mission and strategic goals. Cultivate leadership among board members. Encourage board member development, including further education in the credit union’s governance. The good news is this: There is training for future or existing board chairs. In fact, we’re leading one for CUES. This will be a time and place where you can deepen your understanding about your fundamental roles and responsibilities and gain critical knowledge about building an effective board culture, evaluating your CEO and even facilitating great board meetings. We promise an engaging, provocative exchange that will push you to the edge of best practice in board leadership. Previous Next

< Back Into the COVID-19 Fire to Make Things Better for Members and Staff Caitlin Hatch Apr 3, 2020 A strong alignment of the CEO, senior leaders and the board enabled early, effective action. We were talking with one of our clients, F&A Federal Credit Union in Monterrey Park California, the other day and were struck by their early, decisive actions in the face of the COVID-19 pandemic. (F&A was chartered in 1936 to provide financial services to employees of the Los Angeles County Forestry, Fire and Agricultural Departments.) We soon learned that the decisiveness in responsive to the coronavirus situation was the result of a combination of a well-thought out pandemic response plan and the courage to act when some might have argued that it was too early to do so. F&A FCU’s actions were made possible by a strong governance culture of trust between the credit union’s board and CEO Tim Green and his management team, all of which enabled Tim to make some tough, early calls. Tim told us that by late January he was concerned enough about the likelihood that the virus would impact the United States that he decided to implement the credit union’s pandemic response plan. As Melia Keller, VP/marketing notes, “Tim a visionary on this … the need to prepare for a quarantine. It was really hard to fathom. We ordered laptops and set them up to work remotely, came up with a communication plan, prepared for kids being at home, employees working remotely and identified people of a higher risk and started them working from home right away.” And, the board was supportive of it all. In February, F&A FCU developed and prepared call center scripts and emergency member communications, Melia told us, “We had a communication plan in place, with scripting for outbound messaging. It all emphasized caring for the member. That has really differentiated us. We approached everything from a perspective of compassion and humanity.” Lastly, and perhaps most importantly, the credit union focused on ways to make things better for its members and its employees. It developed programs to meet the members’ needs, including loan deferment through enhanced skip a pay, the waiving of loan late fees, and a short-term 0% APR loan of $5,000 for any member impacted by COVID-19—regardless of credit score and knowing some loans may not be repaid. Employees are empowered to help where they can, and for one desperate member, this meant F&A FCU even provided a couple of rolls of toilet paper at the drive-through window. For employees, Tim initiated a short-term 30% raise and offered 40 additional hours of paid time off to use as needed. For employees working in the branches (one is drive-through only, the other has limited teller hours), the credit union caters lunch, so they don’t have to go out. They even gave each staff member two rolls of that precious toilet paper from the credit union’s supplies! According to Tim, the goal was similar to the goal of its firefighter members: to make things better. “Everything was pre-planned, except the toilet paper and the decision on the 30% temporary pay adjustment,” he said. Tim felt confident that he could make that command decision and that the board would support it—and indeed it has. Tim noted to us that COVID-19 “has crystalized our values without us having to talk about it. We are the ones who are there for you.” It struck us that the F&A FCU leadership—board and staff – were running “into the fire” of the COVID-19 pandemic, ready and able to help its members, just as its own firefighter members are ready, willing and able those in need. The CU’s preparation, shared dedication to service and, perhaps most importantly, culture of trust (even though Tim is a relatively new CEO) have been invaluable for F&A FCU members. Caitlin Hatch previously served as a senior consultant with Quantum Governance and has worked with credit unions for the past eight years, focusing on governance and strategic planning. Prior to that, she served for 25 years as general counsel and corporate secretary for the largest anthracite coal company in the United States. Previous Next

For Questions About the Grant, Fill Out the Form Below: You can also email gisele@quantumgovernance.net for a quick response. First Name Last Name Email Message Send Thank you! We will be in contact.

Gisèle Manole VP of Marketing & Senior Consultant Gisele’s work with credit union and nonprofit clients, and as a liaison to Quantum Governance’s strategic partners, leverages her 25 years of creative marketing, public relations and communications experience. Gisele is second chair on many client engagements and develops connections between clients, our team and the services we provide to further the firm’s mission. Gisèle has written articles on governance and leadership, communications and cultural dynamics for CU management and Advancing Women. Prior to her work with Quantum, Gisèle was the Senior Manager of Integrated Marketing for InStyle Magazine, developing large-scale, multi-media advertising and public relations campaigns for high-profile international brands. Gisèle’s early career included management positions with Condé Nast Publications, Hearst Corporation and Reader’s Digest Association, developing multi-platform programs that capitalized on the invention of social media and digital innovations partnering advertisers with beloved publications including SELF, Cosmopolitan, CosmoGIRL!, Gourmet and Every Day with Rachael Ray. Gisèle graduated from Villanova University in 1999 with a B.A. in English Literature and Political Science, and lives in North Carolina with her family. Back

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

< Back The Sophisticated Art of Ensuring Your Board Grows Alongside Your Credit Union Gisele Manole Dec 27, 2022 Four areas to focus on. Whenever we interview credit union directors or senior leadership and ask about strategic priorities, we hear them talk about some version of growth—asset growth, membership growth, loan growth, SEG expansion, and the list goes on. We rarely hear about growth as it relates to the board. As credit unions continue to grow operationally, boards just seem to be along for the ride. Some are keeping up, but many are not. Would you hire the same CFO or director of finance for a $5 billion credit union as you would for one with $5 million in assets? Of course not. You know that as your credit union grows operationally, your staff must have the experience and expertise to do their part with excellence. So too, must your board. One of the situations that should prompt an assessment of your credit union’s governance is growth itself. As your credit union’s assets crest $1 billion, $5 billion and especially $10 billion , regulatory requirements change, the complexities of your institution’s financial structures will increase, and your board will be challenged to govern quite differently than it once did when your institution was smaller. CUES member Chris Parker, president/CEO of $1.5 billion Northeast Credit Union commented recently that “for so long we have all focused on working with our boards. We need to shift our foci now to working on our boards—bringing our boards along as our credit unions grow operationally.” This struck a chord with us. Yes! How are you growing as a board to complement the sophistication and expertise of your credit union’s executive team? Beyond the continuing education that so many dedicated board members diligently pursue, what are some of the things you should consider and important questions you and your board need to ask to ensure that your board is growing and keeping pace with your credit union? Four Areas for Board Governance Growth Committees. Has your committee structure evolved to inform the strategic work of the board? Ten years ago, governance committees were a rarity. We are happy to report that whenever we ask a room full of credit union directors how many of them have a governance committee, at least half if not a third of their hands go up. A formal governance committee provides boards with a specialized forum in which to oversee critical issues, including nominations and renewal, monitoring board performance, and ensuring that board policies and procedures are relevant and contemporary. These are all deeply important to ensure the continued achievement of your credit union’s vision and mission. Developing an active and forward-thinking governance and nominations committee is one of the most strategic and forward-thinking moves a credit union can make. Policies. If you are regularly hosting hybrid or even fully virtual meetings, do you have a policy on virtual board meetings? As countless boards talk about the importance of diversifying their boards, how many of them have a formal DEI policy? Governance policy manuals are not evergreen. Look beyond updating what you already have and ensure that your board-level or governance policies support your strategic growth and direction. Board Meeting Agendas. In The State of Credit Union Governance, 2020 , published by CUES and Quantum Governance, directors revealed that they spend only 26% of their time in board meetings on strategic matters. Further, our review of credit union board meeting agendas and minutes suggests that 26% might be an overestimate. Boards must become deliberate in allocating time to strategy regularly, and board chairs and the CEO must collaboratively master the fine art of developing agendas to prompt strategic and even generative discussions. Consider the use of digital technologies, for example, to approve budgets or conduct trainings. Meeting tools such as consent agendas and dashboards can speed the transfer of data and reports. Then, with the time you have left, ask yourself, are our board meeting agendas routinely focused on strategic matters? If not, how do we modernize and change them to keep up with our evolving governing role? Board Composition. Just as a $5 billion credit union wouldn’t hire a CFO that didn’t have an appropriate level of expertise or experience, your credit union board needs directors that have the mix of skills and experience needed to effectively advise your CEO and executive leadership. You can’t know if you have the director talent and expertise your credit union needs unless you develop matrices that illustrate where your directors currently have strong skills as well as areas of needed development. Does your credit union have a plan for retiring directors who are unable or unwilling to contemporize their skills and practices to keep up with the growing needs of your credit union? Don’t suffer gaps on the board because you are urgently filling a board seat, either. Plan carefully and properly for director departures. Thoughtfully onboard new directors with knowledge of what they as unique individuals bring to the table and how their talents and expertise may translate to your credit union’s vision and mission. Previous Next

< Back Does A Divided Vote Make You A Divided Board? Jennie Boden Apr 25, 2023 A divided vote makes you a human board. And it’s what you do afterward that matters most. While most of our clients are credit unions, Quantum Governance also works with a wide variety of other non-profit organizations—foundations, associations and charitable groups, even a small children’s home in India with an annual budget of just $50,000—helping their boards and chief executives level up their governance and strategy. We learn from every organization, adding to the knowledge bank from which we draw for all of our clients. For example, in recent times, a former credit union board chair called to ask if we could help his local school board find its way back to solid ground. This school board, like many others, had experienced wars over masking, vaccines and more that arose during the COVID-19 pandemic. And these experiences had taken their toll. When the school board chair said, “You’re our last hope,” we knew we had to help. And so it was, when in the middle of an offsite with that school board client that a fundamental, universal governance question was asked: “If we have a divided vote, does that mean that we’re a divided board?” It was one of the best, most nuanced governance questions that I’d ever been asked. I share it with you now, my credit union colleagues who serve on the board, because I believe you do everything you can to elude divided votes. I think you loathe divided votes. I think you fear divided votes. I’ve even been told that you refrain from putting what you even think might become a divided vote on your meeting agendas. But have no fear. I’ll share with you the same answer that I gave my school board client in the hope that it will benefit you: “Divided votes do not mean that you’re a divided board. They mean that you’re a human board. They mean that you’re a board made of living, breathing people with different perspectives and different thoughts.” I continued, “Divided votes mean that you feel comfortable enough as a board to have robust conversations and share compelling and, yes, contrary points of view and to support them with your votes.” “It’s what happens after the vote that determines whether you are a divided board,” I said. “Do you speak with one voice?” I asked. “Or do you leave the boardroom still advocating strongly for your position to anyone and everyone who will listen? Or are you respectful of the will of the whole as your board service demands you to be?” While I don’t wish upon any board the contention and divisiveness that our school board client has faced in recent years, I do hope every board will have the courage to wade deeply into robust conversations, the strength to tolerate divided votes, and the respect, in the end, to support the will of the whole. Previous Next