Posted by Lisa Hochgraf
I never really thought about this before. But during CUES Director Development Seminar this week in Charleston, S.C., presenter John Oliver told attendees that credit unions work with a “raw material” just like any industrial company would. “We too have a raw material and we put it to use,” said Oliver, president of Laurel Management Systems, Palm Springs, Calif. “Our raw material is other people’s money. The way we put that raw material to use is we put that raw material at risk.” Oliver asserted that credit union boards need to have very high standards for governance (leadership) because of the nature of CUs’ raw material—and what they do with it. Unfortunately, Oliver thinks many boards aren’t living up to a high standard of governance, which he defines as doing tasks, setting strategy and providing oversight. He said credit union boards are pretty good at the tasks they have to do, but not so good at setting strategy. And, he rated CU boards as “reasonable but improving” in their ability to ask the questions required in providing operational oversight. How is your board doing? Are you supporting your raw material and your CU’s use of it with outstanding board governance? Think about your work on “tasks,” “strategy” and “oversight.” In which areas could you improve? How? Lisa Hochgraf is a CUES editor.
Read more from CUES Director Development Seminar.
Read an article about boards and strategic planning.
