Better Board Decisions

If you’re like a lot of us, you often push difficult or time-consuming strategic discussions toward the bottom of your board meeting agenda. We do it without thinking, because it just seems more efficient to knock out ongoing business before rolling up our sleeves to tackle the hard issues. However, after my experience at this summer’s CUES Governance Leadership Institute™, I’m rethinking this one. Why?

Because I learned something essential that, in retrospect, seems obvious in its simplicity: Contrary to common practice, the very best time to have those strategic discussions is at the beginning of the board meeting—before time runs short, while the directors still have the fresh minds and perspective to give important issues the thoughtful consideration they deserve. Better to rush day-to-day housekeeping business, than give short shrift to matters of strategic significance.

There are also a few other things I expect to do differently with the Xceed Financial Credit Union Board since attending GLI. I will, for example, be more sensitive than ever to the trap of “group think” and the dynamics that can lead to a board, or any other group for that matter, being swayed by stronger personalities and first impressions.

As someone who prides himself on an egalitarian and inclusive leadership style, it was, for example, a shock to learn of the dangers of “polling” on an issue when beginning a discussion. I never before recognized how taking a poll at the outset can tend to reinforce one point of view and limit alternatives from coming forth. Those of us who strive for diversity can inadvertently undermine our own goals, and lose the benefit of the knowledge of those in the minority, when we poll—especially, given that the right solution to a problem may not even be an option presented in the poll.

People Helping People

Even more fundamental than these decision-making process insights, however, were the notions we discussed surrounding a board’s service focus. Though we all have mission and vision statements for our organizations, in daily governance, it’s easy to lose focus on our role and who we serve.

However, nothing is more central to board governance than to have a clear understanding of who we, as board members, serve. Is it the member? Is it the larger entity of the organization? Or is it, perhaps, a combination—recognizing the inter-relationship and sometimes conflicting interests of the two?

At Xceed Financial CU, our board volunteers are proud of our unfailing commitment to doing what’s best for our members. However, we also need
to remember that a single-minded focus on shareholder value can lead to short-sighted decisions that may not be in the best interest of the organization. That, in turn, can be detrimental to the shareholder/member’s long-term interest.

Real-Life Application

Throughout the program, these and so many other issues boards wrestle with regularly were brought to life through case studies, which I found to be among the most beneficial aspects of the program.

Many of the case studies involved a problem that continued to develop during our discussions. This required us to be flexible, nimble and open to new ideas. Since GLI attracts people with a broad array of experiences, the opportunity to learn from them was a great experience.

All that said, I have to admit that perhaps the biggest lesson I took home from GLI was the realization of how much I still have to learn. Before retiring a few years ago, I’d spent decades in leadership roles at major corporations. I was also no stranger to board governance, having served on Xceed Financial CU’s board for more than 20 years, as well as the boards of various other nonprofit organizations. So, the fact that the GLI program truly challenged me, and caused me to think differently about many things, speaks volumes about the quality of the program, its instructors and my fellow participants.

A CUES Director member, Dennis Ruffner, CCD, is chair of $964 million Xceed Financial Credit Union, El Segundo, Calif.