By John Coffey, CCD, CPA
Speaking only for myself, I don't know how you attract good people, but I do have some advice on what to look for in good people:
First, the credit union board or CEO should look for individuals with high moral and ethical values, because it helps foster the spirit of volunteerism. For me, giving back to the community, contributing philanthropically, and committing myself to institutions that share and reflect my personal values are deeply ingrained in me.
Without "going religious" on you, I think that looking for people who are involved in their place of worship is a good start—even if not in a leadership role. I would seek out individuals who helped with events, daycare, or Sunday school, or those who went on a mission trip. It's commitment and passion that counts, not whether they were elected to office.
If more secular pursuits are more appropriate, I would look toward individuals involved with the Boy and Girl Scouts, Big Brothers/Big Sisters, local public broadcasting station or Humane Society or animal shelter. Again, it's finding the passion, not the position one holds.
Second, look for a commitment to education—advanced degrees, professional designations, specialty training and military rank all show a commitment to self-improvement, constant learning, and high standards.
And, while industry might be a good source for recruiting, I can't tell you how many potential volunteers come with their own agenda—many times it's real estate agents, insurance or investment brokers, or other people that seem to view volunteering for the board as a business opportunity! I would immediately turn those folks down, because they would never be able to put the needs of the members and the needs of the credit union ahead of their own needs.
In the past, much of the passion came from sponsor organizations, but with the explosion in SEG, community, and other fields of membership, that passion is quickly being diluted. For me, I did come in through a SEG, which was serving the financial services industry. Even without the personal commitment in 1 & 2 (above) I would have easily fallen into 3. My point is not that you can't find good people in business—you should—but, they need to have overriding personal commitments and passion.
So, what keeps me going?
First, keep it interesting: Twice a year, we do strategic planning sessions: one to project into the future, and one to assess that projection against reality. We use a variety of techniques—breakout groups, case studies, lecture/articles, and more Socratic methods, often bringing in "experts" from staff and the board. We rarely, if ever, us a facilitator and always try to engage everyone that comes to the meetings. Extra-curricular activities and nice locations add to the interest (e.g., "Creating a Culture of Service Excellence," provided by the Ritz Carlton Leadership Center, while touring their newest facility).
Keep me involved and engaged: Address the big issues—CEO Compensation Trends; Retirement Benefits; Asset/Liability Management; Expanded Services; New Facilities; Information Technology Initiatives, and the like. We rarely have committees, except for ALCO and CEO Compensation, which have well-defined charters and mandates. Instead, we bring in the experts for updates on ongoing initiatives and dedicate planning time to larger issues.
Our President/CEO and his management team are all very capable professionals, so the board does not second-guess what they are doing. However, we want to know what they are doing, why they are doing it, what's the thought process that went into the decision, and what does management expect from the board. Sometimes we ask for more and get less; sometimes we don't ask for enough and get more. Overall, however, I think we are involved in all aspects of critical decision making but stay well clear of the day-to-day management of the credit union.
Keep me informed: Associations like CUES; membership levels, like CUES Director Membership; monthly publications, like CU Management all serve well to keep the directors informed. Also, our President/CEO provides a weekly report of what's going on in the movement, in our market, and at the credit union (including its vendors). This has worked well for staying up on more current events.
Keep me educated: Our credit union budgets $10,000 per director, for conference attendance. We pay for guest travel as well. However, I recently spoke to a CEO whose credit union (which is much smaller than we are) budgets upwards of $45,000 per director, because "that's what I'd have to pay if I had directors like those in the corporate world."
I think whether the amount is more or less is really irrelevant; it's the commitment to education that thrills me. I absolutely love the intellectual stimulation of the London Business School (former host of CUES’ Directors Leadership Institute), Harvard University (host of the Advanced Leadership Institute).
In the past, I had attended the "en masse" sessions, like the annual Directors Conference. However, those aren't for me, anymore. I love the rigors of Socratic learning, group discussion and case analysis!
John J. Coffey, CCD, CPA
Vice Chair
Fairwinds Credit Union
Orlando, Fla.
