8 surefire times you need to evaluate your board’s performance
In a recent study conducted by Quantum Governance, only 22 percent of credit unions rated themselves as “effective” or “very effective” at conducting a regular process of self-evaluation. Comparatively, 34 percent felt they were ineffective or even “very ineffective” in doing so. With the long tenure of credit union board members and the continually evolving business climate that faces today’s credit union, remaining relevant, current and ahead of the curve is more important than ever. In fact, it is incumbent upon every credit union director to do so. A board assessment is a critical component in an ongoing process of board renewal, strengthening and improvement. Done well, it can provide an objective and comprehensive perspective that ultimately will help your board and senior management team focus your efforts, activities and precious resources. Together, you will identify your credit union’s strengths and challenges and, in doing so, find ways to move forward collectively to the betterment of your members. You can frame your issues in a new way, generating bright ideas and insights that will lead your credit union effectively into the future. Plus, you will build a baseline against which you can measure future progress. You should definitely consider a board evaluation in the near term if you:
- have a new credit union board chair or CEO
- want to elevate your credit union’s leadership or strategy to the “next level”
- have been experiencing very high or very low board member turnover
- need to address issues or concerns with your current governance structure, policies and/or practices
- are getting ready to launch a new strategic planning initiative (or revise your current strategic plan)
- are considering a merger or acquisition
- have experienced significant change, growth or “crisis” within your credit union or board
- have not undertaken an evaluation in the last three years
Michael Daigneault, CCD, is CEO of Quantum Governance L3C, Vienna, Va., CUES’ strategic provider for governance services. Daigneault has more than 30 years of experience in the field of governance, management, strategy, planning and facilitation, and served as an Executive in Residence at CUES Governance Leadership Institute. Quantum Governance fields more engagements in the credit union community than in any other, more than 30 percent of its total client projects. Learn more about the board assessments offered by CUES and Quantum Governance.
Get an orientation (or an update) on credit union governance best practices by attending CUES Director Development Seminar, Sept. 16-18 in Savannah, Ga. Also in Savannah that week: Director Risk and Compliance Seminar, Sept. 14-15.
The Filene report, Should Credit Unions Pay Their Directors?, examines the current industry debate about this governance practice and offers several recommendations for consideration. CUES was a partner in this research.