By Michael Daigneault
There are many wonderful adjectives to describe credit unions and their leadership, and one that almost universally holds true is “well-intentioned.” All of the credit unions I’ve worked with over the years have been committed to doing the right thing for their organizations, membership and communities. Where I derive immense job satisfaction is helping credit unions turn “well-intentioned” into “effective.”
Take governance, for example. A conscientious credit union CEO and board want to know how well they are doing, and may periodically survey the board to get answers. But is that enough? Assuming your goal is to become as strategic, relevant, competitive and helpful to your members as possible, just surveying the board is not enough.
Visualize the governance of a credit union as being set up like the U.S. government with an executive branch (CEO and senior officers), judicial branch (accountability supervisory committee) and legislative branch (the board itself). It would reveal a pretty incomplete picture if we only looked at Congress’s performance when determining how well the entire government is doing. That’s exactly what is happening in the credit union world, since most current assessment tools only take into consideration the board.
A new approach that gets to the core of an organization’s overall governance performance by examining all of its key elements may be just the right solution. Looking at 1) the board as a whole, 2) board committees, 3) board officers and 4) board members individually yields a comprehensive view of your governance and reveals potential for improvements. Executives and volunteers would be well prepared for strategic planning and implementation with this comprehensive information in hand. See the illustration below.
Five Basic "Governance Assessment" Approaches
Aristotle is quoted as saying, “The whole is greater than the sum of its parts.” That echoes my sentiments about effective board governance. A comprehensive evaluation is much stronger than the sum of the various components. Asking the right questions, and just as importantly, using the right methods, will help your credit union thrive.
Michael G. Daigneault is the Principal and Founder of Quantum Governance, L3C, a consulting firm that specializes in the art and science of governance.
A proactive approach to evaluation will take your organization’s performance to the next level. Start the process today by taking advantage of the free 10-point governance assessment offered through Quantum Governance.
