Creating a Well-Tuned Credit Union Board
By Karen Hodgkiss and Laura Lynch
Ideally, credit union boards reflect the diversity of the membership and the community served by the organization. Having different strengths, experiences and voices at the table should pay off in terms of better decision making and a well-informed strategic plan. However, translating this expertise into effective leadership is not always as easy as it may seem.
A recent report titled “Tracking the Relationship between Credit Union Governance and Performance” by the Filene Research Institute and Clarkson Centre for Business Ethics and Board Effectiveness, and commissioned by CUES, examines the relationship between good governance and financial performance. There are four main issues credit unions can address to improve board performance. They are:
- Time management. Boards frequently waste meeting time dealing with operational details rather than focusing on strategy. Streamlined and consistent administrative practices and prioritized agendas would help make meetings more effective.
- Director evaluations. There is a tendency to allow a lot of leeway when evaluating the performance of volunteers, but it doesn’t do them or the organization any favors. A formal feedback process is a gift to board members in that it identifies opportunity areas for future growth, which will ultimately benefit the organization.