There are many great credit union boards in our movement today. However, a number of board directors have privately complained to me about their board and asked how they can make needed changes. Their complaints about other directors include:
They seem disengaged and hardly participate in meetings.
They don't understand the board packet items.
They only bring the retiree and share rates perspective to board deliberations.
They are from the original SEG and don't know anyone from the new groups we are chartered to serve.
They are bullies and don't work for consensus.
They are only on the board for the conventions. Many not-for-profit boards go through this difficulty. However, with courage and integrity, a board can examine itself, change and become the board it wants to be.
The following steps can help credit unions create the kind of board needed by their members. Often they are addressed as part of the boards' strategic planning process.
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Make the following assumptions (even though they are hypothetical, they are a necessary part of the process). Assume you have to replace the entire board because they have all resigned. Assume that anyone you ask to serve on the board will agree to serve.
Making these assumptions takes away the two barriers that will stop most board deliberations on this topic, that is, who will need to leave the board and what if the people we want on the board won't serve? These barrier questions must be put aside or the board will never progress to the kind of strategic board selection process needed.
The board should build a consensus that, if changes in board membership need to be made, that board members who do not fit the bill will resign and make room for newly recruited board members. Nonvoting emeritus positions can be offered to those who wish to remain involved.
The next step is to get a thorough understanding of the potential membership you represent. What is the composition of the credit union's field of membership in employment, economic status, geography, age, sex, ethnicity, etc.? If the credit union has strategically decided to focus on a subset of the overall field of membership, the composition of that subset should be determined.
Guidelines for proportional representation can then be developed. These should be guidelines and not hard and fast rules that would violate the spirit of antidiscrimination laws.
The board should not make the mistake of thinking that in order to serve a group, for example, the economically challenged, that it must have a person with that specific profile on the board. What the board needs is someone who can represent that group because of his or her experience, employment or professional expertise.
Establish a board director job description. The most important three components will be how the director will represent the interests of the membership, how he or she will participate as a board member, and how the director will participate in the management of the CEO. Another is an ability to understand the complexities of the credit union's board reports and quickly come up to speed.
There are many templates available that can be a foundation for board job descriptions. Beyond these generic formats, directors should identify the behaviors they admire in board directors, both at the credit union and on other boards. Directors should determine what kinds of experience, skills and education that they want in directors.
Review the current composition of the board to determine if the board has the right members. If it does not, a considerate and phased transition process should be developed. Emeritus and advisory positions can make this transition more palatable. This transition process is likely to take several years.
Identify the individuals you want on the board. There should be a prioritized list identifying what characteristics the potential board member brings to the table. Check references. Has the candidate been a positive force on other boards? Does the candidate have a reputation for being dysfunctional?
Recruit the board members. Designated board members or the CEO can take on this task. A standard interview questionnaire should be used to insure that this final bit of research is comparable among candidates. Having a newly recruited board member serve in an advisory role or on the supervisory committee for a short time can give the board and the new board member time to see if there is a good fit.
The process of identifying and attracting the best board members should be seen as a million-dollar decision and should be given the appropriate attention and work.
The process needs to be as deliberate and as thoroughly thought through as the hiring of a senior executive staff member or a CEO.
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