This week I attended the 34th Annual National DirectorsConvention in Las Vegas as a speaker on the topic of “RelentlessStrategic Leadership to Ensure Member Value.” The sessions wereattended by both directors and CEOs. The topic most commonly askedabout in both sessions was concerns about toxic board members whoare defined as directors who are underperforming assets. Thesedirectors take up critical spots on credit union boards.

My response to these concerns was that there is an answer and anapproach that if done correctly, over time, can have peopleself-select off boards. Our firm has taken boards through thisstrenuous and challenging process with incredible success.

The process involves the facilitation of a board assessment byan independent third party. This initiative is efficient as itutilizes an online survey form designed for credit union boards.The information is collected and aggregated for trends andchallenges as to how the board is working as a whole and whatchallenges need to be addressed. Comments on behalf of boardmembers are confidential and never reported back specificallylinked to individuals expressing their opinions.

What comes out of this effort is a working framework andfoundation for the development of a better board culture which canhandle the pressing and challenging work of boards today to servetheir members more effectively. It also puts into place a focus oncontinuous improvement and learning.

In this increasingly difficult economy, adaptability andresponsiveness are critical components for credit unions to surviveand thrive. By focusing on learning and understanding where theworld is going and how to adapt to it with changing members andmembers being in charge, credit unions can stay current with theright products and services for their members.

What is effective volunteer leadership? In addition tounderstand fiduciary duties, including understanding how to readbalance sheets and income statements – what does each line itemmean, why is it important, does it change in value over time andwhat does this mean for your credit union? – it is also critical tostay on the edge of learning so that you can assist your creditunion in terms of understanding and approving its strategy as wellas the need for new strategies that fit changing times.

Uninformed behaviors can put credit unions are risk. Forexample, the average age of all 90 million credit union members inthe United States is 47 years old, which is continuing to rise. Whyis this an important and a key statistic for credit union boardmembers to understand? Robust lending programs are needed to ensurethe safety and soundness of all credit unions. Peak lending age isbetween age 25 and age 44 as per Melinda Love, in her speech at theconference.

The average age of all credit union members is already beyondthe peak borrowing age. In fact, only 4% of all credit unionmembers are between the ages of 18 and 24, down from 6% in the lastyears. This is in direct contrast to the demographics of the U.S.which shows one third of the population is under 24.

By not recognizing the opportunities represented by newgenerations and not marketing to them, we are missing a huge marketin which credit unions can play a huge role in helping them to havea secure future. It is your role as a board member to educateconsumers and make sure that this demographic becomes aware of thecredit union industry and markets to them with modern messages theyrelate to, in mediums they use, such as Facebook and Twitter, andwith services that provide value to them.

In fact, there is a huge opportunity in the area of membersatisfaction among credit union members. There is a 30-pointdifference between member satisfaction for those members who areover 60 and those members who are under 30. That’s a big differencein satisfaction for credit unions to address and boards should bethinking about these issues and addressing them effectively.

Gen Y wants convenience, accessibility, personal touch and hightech tools. How will we as board members, effectively be able toaddress this if we don’t use these tools ourselves or if we don’tallow younger people onto boards who understand this market?

Where are your members and loans of the future going to comefrom? Base upon the mission of the credit union movement and itsdirectors, you play a critical role in strengthening America andgetting us back on a path of stability, helping to make dreams areality for individual members. I believe these members areentitled to having the best directors serve them – ones who want tolearn and grow, who study where the world is going so that they canbe in the best position to ensure the survival and success of thecredit unions they serve.

Stuart R. Levine is chairman and CEO of Stuart Levine &Associates LLC, a strategy, leadership and governance consultingfirm. www.stuartlevine.com.