Boards, CEOs together make for CU success

When it comes to truly understanding the nature "inside" the credit union marketplace, Mike Welch consistently gets it right. His Feb. 16 column, "Hiring right CU CEO most important decision" is an excellent example. One of the most valuable assets in credit unions never shows up on an organization's balance sheet. I'm talking about the intellectual capital contained in the minds and hearts of today's credit union CEOs (and senior management teams). We have seen first hand that the most important job that a board of directors can do in fulfilling its fiduciary responsibility is to properly hire and retain the competent professional leader we call the Chief Executive Officer. After consulting with credit union boards, committees, and paid professionals of credit unions of all sizes and sophistication for the last 20 years, a continuing (and somewhat disturbing) common denominator for a credit union's success is the relationship a board has with their CEO, and the CEO with their board. We have found that there is a direct correlation between the overall value the credit union provides its membership and the attitudes and working relationships between the boards and their CEOs. The strength of professional relationship between the parties goes hand-in-hand with the organization's ability to perform at its optimum, thereby generating maximum member benefit. We have the great opportunity of working with some of the finest boards and CEOs in North America. They all exhibit common traits and characteristics that lead to their organizational success, and ultimately, the most significant positive returns to their memberships. These credit union boards and their CEOs continually "do it right," by actively implementing all "Ten Commandments of Positive, Productive Board/CEO Relationships." They are: 1. All parties (board and CEO) correctly understand their responsibilities, and the responsibilities of the other party, both from a conceptual and practical standpoint. 2. Both the board and CEO work diligently to discover together, where they want the organization to go (strategic direction), and know why they want to get there (vision and values). 3. After getting the facts and truthfully assessing the environment and specific situation, both board and CEO are decisive in their decision-making and actively measure their follow-through. 4. Both boards and CEOs have a high degree of respect for each other, and actively solicit and listen closely to the concerns, needs, wants and desires of the other. Each party works to emotionally place themselves into the shoes of the other party, and works hard for the other. 5. The board appropriately leaves the tactics (Who, How, When, How Much) to the CEO. The board leaves "how to get there" to the paid professionals. 6. Good, healthy, honest listening (not just talking) takes place on an ongoing basis between and among the board and CEO. 7. Both board and CEO continuously avail themselves of outside information, education, expertise, experience and counsel. 8. Both the board and CEO are wise (and humble) enough to seek the other's advice, opinions, and feedback, prior to making a major decision. 9. When misunderstandings arise, both board and CEO actively seek to resolve the issue, before it grows into a real problem. 10. Both board and CEO "assert their authority, power, and control" over the other, only as a last resort, when all other avenues have been fully exhausted. When these simple commandments are fully understood and actively followed by all, the organization is much more effective and results driven, thereby creating greater positive member benefit. Isn't that what we are all working for? Ron C. Nice President Nice Enterprises, Inc.