3 minutes
Discover strategic steps to building a high-performing board that drives success.
Having a board of directors composed of friendly and committed individuals is undoubtedly a positive aspect of any organization. However, the real question that often goes unanswered is whether your directors possess the necessary skills and knowledge to effectively lead the credit union toward its goals and long-term success. Plus, do you even know what those critical board competencies should be?
Many organizations, out of necessity or tradition, accept members solely based on their availability rather than strategic necessity. This approach, while understandable, can potentially overlook critical competencies essential for navigating today's complex business environment.
So, What’s the Alternative?
The alternative lies in adopting a proactive approach to board succession planning — one that involves a deliberate assessment of the organization’s needs and the strategic competencies required to fulfill those needs. This proactive approach not only ensures that the board is equipped to make informed decisions, but also enhances its ability to steer the organization through challenges and capitalize on opportunities.
Here’s a Structured Approach to Achieving This:
1. Assess the Needs of Your Credit Union: Begin by revisiting your organization’s mission, vision, and values. Identify the key strategic priorities for the next three to five years. Understanding these foundational elements will provide clarity on what competencies are critical for your board members to possess.
2. Identify Your Board’s Ideal Competencies: Based on your assessment of the organization, create a comprehensive list of competencies that you believe should be represented on your board. These competencies could range from strategic thinking to governance expertise to specific industry knowledge. There are some competencies that are commonly required by all board members, however the exact mix of competencies will depend on your organization’s unique context and goals.
3. Review Your Board’s Diversity Goals: Diversity and inclusivity are also key components of a well-rounded succession plan. A diverse and inclusive board brings a wide range of perspectives and experiences, which can lead to more effective decision-making and problem-solving. Regularly reviewing and updating the plan enables the organization to identify and recruit candidates from underrepresented groups. And the organization can create an environment in which all board members feel valued and respected.
4. Conduct a Competency Self-Assessment: Ask each current board member to perform a self-assessment for the identified competencies. This exercise will reveal gaps between the existing skills on the board and the skills required to achieve your organizational objectives.
5. Develop a Plan to Fill Gaps: Not every competency may currently be represented on your board, and that’s okay! The goal is not to replace existing members but rather to strategically build up the board’s skill set over time. Consider identifying and recruiting potential candidates who can bring the needed expertise in the future. Additionally, provide opportunities for current board members to develop skills that may be lacking through targeted training or mentorship programs.
6. Regularly Review and Update: Just as organizations continuously evolve, so too should the composition of their boards. Regularly review the board’s composition against organizational needs and be prepared to adjust as priorities shift or new challenges emerge.
Conclusion
By adopting this proactive approach to board composition, organizations can ensure that their boards are not just functional but truly strategic assets. In conclusion, just as employers select employees who bring the right skills to the table, boards should be equally diligent in selecting members with the competencies needed to drive organizational success. By actively seeking out individuals who complement existing strengths and address identified competency gaps, boards can fulfill their critical role in steering organizations towards a prosperous future.
Yvonne Evers, the founder and CEO of CUES supplier member SUCCESIONapp, LLC, is a succession planning expert who has successfully worked with hundreds of credit unions over the past 25 years. SUCCESSIONapp, LLC is the leader provider of online management and board succession planning solutions in the credit union industry. The mission of the company is to help leaders and board members create succession plans to ensure smooth and successful transitions.
