By Fred Johnson
CUES has been offering learning and growth opportunities for credit union executives and leaders for more than three decades. It’s not surprising then, that we’ve been thinking a lot about NCUA’s proposed regulation 701.4, which provides guidance on director education and knowledge (you can read more about our position on it here). What does our experience teach us about successful programming for directors?
CUES recommends and offers a three-tiered approach to director education.
· Tier one builds the foundation of good governance.
· Tier two offers ongoing learning.
· And tier three provides advanced education that ensures high-performing boards.
At CUES, tier one begins with the foundational courses of CUES Director Education Center, which includes courses on reading financial statements and understanding key ratios, as well as exams and a learning management system that provides necessary accountability to directors. Director Development Seminar, a two-day governance seminar, builds on Director Education Center by presenting in-depth information on the duties of care and loyalty, and incorporating peer-to-peer learning and networking among directors. The combination of these two programs has proven over time to provide the critical foundation needed for newer directors to become fully-functioning members of their boards.
In tier two, ongoing education becomes the priority. CUES provides numerous ways for directors to stay on top of pertinent issues, including monthly issues of Credit Union Management magazine (available in print and on line), a quarterly CUES Director Edge newsletter, two annual conferences for directors, and the new Center for Credit Union Board Excellence aka “CCUBE.” Specific needs, such as building and enhancing the CEO/board chair relationship can also be addressed through the annual CUES Symposium: A CEO/Chairman Exchange.
Importantly, CUES is striving to make director education as affordable as possible, even for smaller CUs. Case in point: Several of the educational opportunities in tiers one and two (including CUES Director Education Center, Credit Union Management magazine, and the CUES Director Edge newsletter mentioned here, plus access to the CUES Director Net forum) are available as part of CUES Director Membership—for dues of less than $200 a year per director. And with membership in CCUBE, you get CUES Director Membership for your whole board plus online content for a flat fee determined in part by credit union size.
Tier three is designed for experienced directors seeking deeper knowledge in the areas of governance, strategy and leadership. DLI: Governance at Rotman School of Management at the University of Toronto and Advanced Leadership Institute at Harvard University offer unsurpassed education for directors seeking ways to build their boards into highly-functioning governing bodies. Directors who successfully complete DLI: Governance are eligible for the Certified Credit Union Director, or “CCD,” designation—signifying their commitment to lifelong learning and showcasing a level of expertise recognized throughout the credit union movement. While CUES Director Membership doesn’t include institute tuition, CUES Director members do receive a discount on their registrations for these fantastic programs. And certain levels of membership in CCUBE include education credits for these institutes.
CUES believes that well-designed systems for director education strengthen the credit union movement and position it for success long into the future. Educated board members are better able to address the changing needs of their organizations and adapt to the rapidly changing economic and market forces that have recently provided challenges to the financial service industry as a whole. Instituting education requirements as part of the overall fiduciary responsibilities of federal credit union directors will help ensure the necessary education occurs.
Fred Johnson is president/CEO of CUES.
Also read “Proposed Director Education Rule a Good First Step.”
