Focusing Your Governance Efforts
A high-functioning board plays a pivotal role in credit union success. It's not just about fulfilling legal duties; it's about fostering a culture of strategic thinking, collaboration, and member-centric decision-making.
The Cornerstones of Effective Governance
Your board's responsibilities extend far beyond the basics. To truly excel, they must:
Champion Effective Governance: Ensure that your credit union operates with transparency, accountability, and in the best interests of your members.
Empower Member Participation: Create avenues for meaningful member involvement in governance.
Steward Member Capital: Make prudent financial decisions that safeguard and grow your members' investments.
Guide Strategic Direction: Actively engage in strategic planning, monitor progress, and hold leadership accountable.
These responsibilities, adapted from the Organisation for Economic Cooperation and Development's (OECD) Prrinciples for Corporate Governance, provide a solid foundation for any board. However, to truly distinguish your credit union, your board must go further.
The Power of a Unique Board Culture
Your board's culture is its secret weapon. It's the unwritten code that guides interactions, shapes decisions, and ultimately defines your institution's character. But is your board's culture a deliberate asset, or an unexamined force?
To unlock its full potential, your board must embark on a journey of cultural discovery. By identifying and documenting the unique traditions and behaviors that define your board's interactions, you can:
Cultivate a High-Performing Team: Ensure that board members possess both the technical skills and the cultural fluency to thrive.
Streamline Onboarding: Equip new board members with a clear understanding of your board's culture, accelerating their integration and effectiveness.
Preserve Your Legacy: Safeguard your credit union's unique identity by passing its cultural torch to future generations of board members.
The Path to a Fully Effective Board
By embracing both principle-based governance and a well-defined board culture, your credit union can build a board that is truly exceptional. Remember, a fully effective board is not built overnight. It requires a commitment to continuous learning, open communication, and a shared passion for your credit union's mission.
Chief executives have the power to inspire and guide their board on this journey. By championing a culture of excellence and providing the necessary resources and support, CEOs can empower the board to become a driving force for credit union's success.