By Jessica Jones and Laura Lynch
Every credit union board should make renewal a strategy for success. But many boards struggle with renewal processes such as recruitment and election, which play crucial roles in refreshing the board. The solution? Formalize these processes to efficiently and effectively accomplish them every year.
The Board Renewal Report, a recent report commissioned by CUES® and the Clarkson Centre for Board Effectiveness, shows “a majority of credit union directors (87%) surveyed in 2010 believe their boards should implement elections. However, most (70%) do not have a director election process in place.”
The report also notes credit union boards are faced with a unique challenge in board member recruitment. Like boards in other industries, the goal is to find candidates who are interested, committed and qualified. Unlike other industries, these candidates must also be willing to volunteer their time, and are from your pool of credit union members. These requirements shrink the number of suitable candidates further.
“Without formal processes to ensure ongoing monitoring of board renewal, these boards are more likely to continue struggling with [recruitment challenges and finding candidates]. A formal board renewal process can assist in optimizing demographic composition, skills and recruitment process,” the report suggests.
If your board is seeking to formalize its election procedures, there are a number of issues that can influence the success of your elections. For example, you may choose a staggered approach, with one-third of your directors up for election each year, or you may decide to have the full board up for election annually. The latter practice is less common among credit unions and more frequently seen on the boards of publicly held companies.
You also need to consider the method of voting you provide your members. “While a majority of participants recognize the value in holding elections, there are variations in election process that impact both their outcomes and effectiveness. Certain election structures can encourage competition and better director performance,” the report finds.
Whether your members vote in-person at annual meetings, by paper ballot via mail, or electronically, the method can impact the success of the election. Your board could find that a combination of these methods best covers the needs of your members.
Are you interested in more information from the Board Renewal Report? CUES members can read the full version, nonmembers an executive summary, today.
Jessie Jones is a freelance writer. Laura Lynch is a products and services coordinator for CUES.
CUES eVote: Elect and Educate can help you manage your election and educate your newly elected volunteers. Learn more about CUES eVote today.
