Tag Archive for: #boardagenda

Posts

Organic Growth Isn’t Dead: A Memo for Boards Who Think Mergers Are the Only Muscle Left

/0 Comments/in /by

Remember when your credit union’s growth strategy didn’t involve acquiring the one across town and calling it “synergy”? Those were quaint times — like rotary phones, free toasters, and when “branch transformation” meant adding a fake ficus and a new carpet pattern.

Today, we’re told growth equals mergers. “Economies of scale!” they say. “Efficiency!” they say. And indeed, there’s nothing like doubling your size overnight to make the chart at the annual meeting look like a hockey stick. But here’s the uncomfortable truth: a merger may make you bigger, but it doesn’t always make you better.

And sometimes it doesn’t even make you… you.

By TEAM Resources

The Myth of Mergers as Growth

Let’s be clear: mergers have their place. When done thoughtfully, they can combine complementary strengths, fill product gaps, and offer long-term sustainability. When done reflexively, they can resemble two tired swimmers clinging to each other in a riptide.

Many credit union boards have quietly accepted the idea that “organic growth” — growing through relevance, innovation, and member engagement — is no longer realistic. They assume the game is now about consolidation and survival. After all, “everybody’s doing it.”

This mindset, while understandable, is also a slow surrender of the cooperative DNA that made the movement powerful in the first place. It replaces local connection with administrative convenience. It trades story for scale. And while scale can buy a lot of things, authentic member loyalty isn’t one of them.

When Bigger Isn’t Better

If we were brutally honest, some credit union mergers are like two people getting married mainly because they both happen to dislike dating.

Yes, the combined institution gets a larger balance sheet, a few operational efficiencies, and an expanded field of membership that looks great in a press release. But culture? Mission clarity? Member intimacy? Those things often end up as “non-core assets” quietly written off in the post-merger accounting.

A common board refrain goes something like this:

“We’re not getting enough new members. We can’t keep up with technology. Our growth has stalled. Maybe a merger is our best strategic option.”

Translation:

“We’re not sure how to adapt, so let’s find someone else who’s also not sure how to adapt and see if we can confuse the regulators into thinking it’s progress.”

The Case for Organic Growth (Yes, Still a Thing)

Organic growth isn’t flashy. It doesn’t make headlines. It requires patience, curiosity, and the courage to look uncomfortably inwards. But it is the only kind of growth that builds lasting strength — because it’s rooted in actually being valuable to your members.

Here’s what that looks like in real life:

  1. Deepening Existing Relationships

Your best source of growth is usually the people who already like you. Radical concept, right? Yet many boards are so focused on attracting new members that they overlook the gold mine of existing members who would do more business if someone just asked.

How well do you know your members’ needs today — not when they joined 15 years ago? Are you still talking to them about car loans while they’re quietly launching small businesses or planning retirement?

The most successful credit unions in 2026 will be those that treat data like empathy fuel — not marketing ammo.

  1. Rediscovering Niche Markets

Some of the strongest growth stories in the credit union system right now are small or mid-sized institutions that found their “tribe.” They serve gig workers, healthcare staff, teachers, or specific communities — and they know them inside out.

It turns out that serving a niche exceptionally well beats serving everyone marginally. That’s not just a marketing slogan; it’s a governance philosophy. A board that knows its niche can make strategic bets with confidence instead of wandering through market trends like tourists without a map.

  1. Partnership as Leverage, Not Rescue

    Levers (simple machine)

Partnership doesn’t have to mean merger. It can mean shared back-office systems, fintech collaborations, or joint community projects that expand reach without erasing identity.

The future of cooperative finance might look less like “big fish eats small fish” and more like “schools of fish swimming in coordinated patterns.” (And yes, some of those fish will have better mobile apps than others.)

  1. Relevance Before Reach

Before you try to grow, be worth growing. Members today — especially younger ones — care about whether their financial institution reflects their values.

If your credit union’s last community post was a check presentation in 2018, you might have a relevance problem. Organic growth flows naturally from authenticity: people join and stay where they feel understood, not where they’re sent a quarterly postcard.

Boards: The Gatekeepers of Growth Strategy

Here’s the tricky part — this isn’t a CEO problem alone. Boards often unconsciously reinforce merger dependency. Why? Because mergers feel strategic — they check the “action taken” box.

But true strategic leadership asks harder questions:

  • What do we offer that members can’t get elsewhere?
  • How are we measuring member engagement and satisfaction, not just balance sheet growth?
  • If we weren’t allowed to merge for five years, how would we grow?

That last one is the killer question. It forces creativity, relevance, and discipline. It also reveals whether your credit union has a living strategy or just a growth habit.

When Identity Becomes a Footnote

Mergers change more than logos. They change purpose. When your credit union merges, what happens to your origin story? Your local legacy? The member who remembers when the teller knew their dog’s name?

Those intangible assets are part of your capital base, too — just not in a Call Report cell. And once they’re gone, they’re gone.

This doesn’t mean every merger is bad. Some are necessary and even noble. But the problem arises when boards stop asking the “why” and focus only on the “how fast.”

Because once your identity is gone, growth becomes just arithmetic. And arithmetic is not a mission.

Signs Your Board Might Have Merger Tunnel Vision

  • Every strategic discussion eventually ends with “maybe we should merge.”
  • Your marketing budget is smaller than your merger legal fees.
  • You call it “scale” but secretly mean “retirement plan for the CEO.”
  • The board hasn’t discussed organic member growth in three fiscal years.

If any of these sound familiar, it’s time for a governance intervention.

The Organic Growth Mindset

Reclaiming organic growth doesn’t require a radical overhaul — just a shift in perspective:

  • Growth isn’t a transaction. It’s a relationship.
  • Bigger isn’t safer if it makes you forget who you are.
  • Strategy means deciding what not to chase.
  • Relevance is renewable — if you pay attention.

Boards that embrace this mindset will not only survive but thrive, because they’ll be steering institutions that members actually want to belong to.

Final Thought: The Return of Cooperative Courage

The credit union movement was born from local people solving local problems — together. No one merged their way into that success.

So before your next “strategic partnership exploration committee” meeting, ask yourselves: Are we still in the business of cooperation, or have we quietly pivoted to consolidation?

Because organic growth isn’t dead. It’s just waiting for its board to remember what it looks like.

And spoiler alert: it looks a lot like courage.

 

Fake Work at the Board Level: Are We Really Doing Governance or Just Looking Busy?

/0 Comments/in /by

A Brief Inquiry Into the Boardroom Equivalent of Shuffling Papers

Let’s start with a pop quiz:

At your last board meeting, did you…

  • Spend 20 minutes debating the font size in the board packet?
  • Nod solemnly while reading a report you didn’t understand but didn’t want to ask about?
  • Re-review last month’s minutes like they were sacred text?
  • Approve the CEO’s strategic plan without a single question, but raise hell over the coffee budget?

If you answered “yes” to any of these—or worse, all of these—congratulations: you might be doing fake work.

And if your meetings consistently feel long but unproductive, filled with movement but little actual momentum, your board might be suffering from a terminal case of Performative Governance.

What Is Fake Work?

“Fake work” is not work that looks fake. It’s work that feels real, consumes time, and creates the illusion of value—without actually moving anything forward.

In corporate settings, fake work includes things like:

  • Meetings about meetings.
  • Email threads that could have been a shrug.
  • Slide decks built to impress no one in particular.

At the credit union board level, fake work shows up wearing a suit, clutching a binder, and usually saying something like, “We’ve always done it this way.”

How to Spot Fake Work at the Board Level

Like a chameleon, fake work blends in. It feels important. It’s often accompanied by furrowed brows and phrases like:

“Let’s table that for next month.”
“I just want to make sure we’ve thoroughly discussed it.”
“This isn’t in our bylaws, but…”

But here are a few dead giveaways:

  1. Endless Operational Noodling

Spending time reviewing which credit union branches need new carpet? That’s not governance. That’s facilities micromanagement disguised as fiduciary oversight.

Unless your strategic plan includes “neutral tones in all locations,” this is fake work.

  1. Performative Questions

You know these:

  • “I just want to be sure we’re asking the tough questions.” (Then proceeds to ask a very soft one.)
  • “Could you walk me through this, even though it was covered last meeting?”
    These aren’t questions. They’re boardroom kabuki theater.
  1. Reports No One Reads (But Everyone Pretends To)

Here’s a fun exercise: randomly insert a line in the middle of a 40-page committee report that says, “If you read this, bring me a cookie.” See how many cookies you get.
Spoiler: not many.

  1. Approval as a Reflex

If the board’s approach to governance is “whatever staff recommends,” congratulations, you’re doing the governance equivalent of clicking “Accept All Cookies” on a website. It’s quick, it’s easy, and it usually leads to regret.

  1. Dashboard Addiction Without Interpretation

Boards love dashboards. They’re colorful. They have arrows. They give the illusion of insight.
But if no one is asking, “What story is this data telling us?” or “How does this trend align with our strategic priorities?” — you’re just admiring bar charts in a vacuum.

Why Fake Work Happens

We’re not calling anyone lazy or malicious. Most fake work is born out of good intentions, outdated habits, and a deeply ingrained culture of looking like we’re doing something important.

Here’s why it happens:

  1. Fear of Looking Ignorant

Asking, “What exactly does this mean?” in a board meeting feels risky. So, we don’t ask. We nod. We move on. We fake it.

  1. Avoidance of the Hard Stuff

It’s easier to debate whether the board retreat should be two days or one-and-a-half than to have a conversation about whether your current leadership team is aligned with your strategic vision.

  1. Boredom + Duty = Overreach

Governance is about oversight, not involvement in every operational lever. But bored board members often reach for relevance in the only place they can: operational trivia.

The Cost of Fake Governance

Let’s be blunt: fake work is not harmless. It’s expensive. It’s distracting. And over time, it erodes your board’s credibility, wastes staff time, and causes strategic drift.

It also makes the CEO wonder whether you understand what governance is—or whether you just like the sandwiches.

What Real Governance Looks Like

To be clear, real governance isn’t about being smarter, more experienced, or louder. It’s about being focused, curious, and disciplined.

Here’s what it includes:

✅ 1. Strategy First, Strategy Always

Every conversation should map back to the strategic plan. Not sometimes. Always.
If it doesn’t, you’re not governing—you’re tinkering.

✅ 2. Data With Meaning

Don’t just review the numbers. Ask what they’re telling you. Ask how they connect to goals. Ask why they’re improving—or not.

If the numbers aren’t changing, and you don’t know why, you’re watching a dashboard like it’s Netflix.

✅ 3. Brave Questions

Be the board member who says, “I don’t understand this—can someone explain?” That’s not weakness. That’s leadership.
And chances are, four other directors had the same question and were too proud to ask.

✅ 4. Committee Reports That Matter

Every committee report should answer:

  • What decision are we being asked to make?
  • How does this tie to the strategic plan?
  • What risks or opportunities are we surfacing?

If a report doesn’t help with those, it can go in the archive bin with your 2003 marketing plan.

✅ 5. Time Discipline

If your board meeting consistently goes over three hours and you haven’t solved the succession plan, tackled a major risk, or reinvented your governance model—you might not be “collaborating.” You might just be loitering with paperwork.

How to Cut the Fluff (Without Cutting Each Other)

1. Board Agenda Audits

Go back through the last three meeting agendas. Highlight anything that wasn’t:

  • A strategic discussion
  • A key decision
  • An oversight function

Now count the rest. That’s your fluff ratio.

2. Consent Agendas Are Your Friend

Use them. Ruthlessly. Put everything informational or routine in a consent agenda and reclaim your meeting time for actual governance.

3. Board Self-Assessments

Want a mirror that doesn’t lie? Conduct an annual self-assessment. Fake work often thrives in boards that avoid honest reflection.

Final Thought: Busy ≠ Effective

Credit union board service is a privilege. It’s also a responsibility. That means showing up with intention, asking real questions, making tough calls—and resisting the urge to fill the room with noise just to feel like you’ve earned the sandwiches.

 

 

In other words:

If your board work feels like work but accomplishes nothing, it might not be work. It might just be well-dressed loitering.

Need help distinguishing real governance from well-meaning fluff? Call TEAM Resources. We’ll help you streamline your board practices—and maybe even help you get those meetings down to something resembling human time.

 

The Fine Art of Going Along to Get Along: A Credit Union Board Tradition

/2 Comments/in /by

By Kevin Smith

Credit union boards of directors have a well-documented, time-honored tradition of “going along to get along.” It’s an elegant, time-saving approach that ensures board meetings remain as peaceful and predictable as a slow-moving game of bingo at the senior center. No rocking the boat, no uncomfortable questions, and certainly no unpleasant confrontations. It’s a strategy built on the idea that if everyone agrees, then everything must be working just fine.

But, of course, that’s not always the case. This unspoken rule of unanimous harmony, while convenient, has a few tiny flaws—like, say, the potential to undermine the very purpose of the board itself. Let’s take a closer look at how we got here, why it’s a problem, and how to (gasp) fix it.

How We Ended Up in This Situation

The evolution of “go along to get along” governance is simple. It starts with a group of well-meaning individuals who join the board because they believe in the credit union movement. They’re here to make a difference! They’re here to help their members! And then they attend their first meeting.

What they find is an environment where disagreement is as welcome as a skunk at a garden party. They quickly learn that difficult questions result in awkward silence, darting glances, and, if things get particularly out of hand, a long-winded response that doesn’t answer the question but does ensure that no one will ever ask it again.

Soon enough, new board members realize that life is easier when they nod along, approve the agenda, and save their concerns for private grumbling sessions later. And just like that, another cog in the “go along to get along” machine is installed.

The Problem with Passive Boards

While group harmony sounds lovely in theory, it’s not exactly the hallmark of effective governance. Boards exist to provide oversight, challenge assumptions, and ensure the organization is actually serving its members—not just rubber-stamping the CEO’s latest PowerPoint presentation.

When boards avoid conflict at all costs, several unfortunate things happen:

  1. Lack of Accountability: If the board refuses to question leadership decisions, then no one is holding management accountable. Over time, this can lead to poor financial decisions, ineffective strategies, and policies that favor the credit union’s executives over its members.

  2. Missed Opportunities: Good ideas rarely come from an echo chamber. If everyone on the board is simply agreeing with each other (or staying silent to avoid disagreement), then creative solutions, innovative strategies, and potential improvements never see the light of day.

  3. Complacency Creeps In: A passive board creates an environment where stagnation flourishes. If no one challenges the status quo, then the status quo reigns supreme—whether it’s working or not.

  4. Risk Increases: The financial industry is full of risks, and credit unions are not immune. If the board isn’t actively engaged in evaluating potential threats, then they’re setting the credit union up for some unpleasant surprises.

Breaking the Cycle: How to Fix It

So, what’s the solution? How do we cure the boardroom malaise and encourage actual engagement without triggering a full-scale rebellion? Fortunately, there are a few ways to do just that and some of these should be familiar if you’ve been reading this blog for any length of time. 

1. Encourage Constructive Dissent

The first step to fixing a passive board is to make it clear that disagreement isn’t a personal attack—it’s a necessary part of good governance. One way to encourage this is to assign someone the role of “devil’s advocate” in discussions. (Many of you have heard me bring this one up before … repeatedly. It works!) If every proposal has at least one person assigned to poke holes in it, then dissent becomes part of the process rather than an act of defiance.

2. Change the Meeting Format

Most credit union board meetings follow a predictable (read: dull) structure. Reports are read, motions are made, votes are cast, and everyone goes home without a single bead of sweat forming. To shake things up, consider introducing strategic discussions as a standing agenda item and at the beginning of the meeting, rather than the end. Instead of only reviewing past performance, dedicate time to debating future opportunities and risks.

3. Board Education & Training

Many credit union board members come from backgrounds that have nothing to do with finance, risk management, or governance. That’s not necessarily a problem—diversity of thought is a good thing—but it does mean that ongoing education is essential. If board members don’t feel confident in their ability to challenge decisions, they won’t. Regular training sessions on financial oversight, regulatory requirements, and strategic planning can give board members the confidence they need to ask the right questions.

4. Rotate Committee Assignments

If the same board members serve on the same committees for years, they risk becoming too comfortable (or too cozy) with management. By regularly rotating committee assignments, credit unions can prevent stagnation and encourage fresh perspectives.

5. Recruit for Independence

Credit unions often struggle to find new board members, which leads them to recruit from within their existing circles. The result? A board that’s a little too familiar, a little too friendly, and a little too hesitant to challenge the status quo. Instead, credit unions should actively seek out independent thinkers—people with diverse backgrounds who aren’t afraid to ask uncomfortable questions. This should be part of your recruiting discussion from the get-go. 

6. Evaluate the Board’s Effectiveness

Finally, the board should regularly evaluate its own performance. Are members actively engaging in discussions? Are difficult issues being addressed? Or is everyone just nodding along, waiting for the meeting to end? Conducting anonymous self-assessments can help board members reflect on their own level of engagement and identify areas for improvement. You know very well that this is a hobby horse issue at TEAM Resources. 

A Little Discomfort is a Good Thing

Credit union boards don’t need to be battlefields, but they shouldn’t be tranquil meditation retreats either. The best boards strike a balance—encouraging open debate while maintaining mutual respect.

Yes, challenging leadership decisions can be uncomfortable. Yes, asking tough questions might make a few people squirm. But discomfort is not a sign that something is wrong—it’s a sign that something is being done right. Because at the end of the day, the credit union’s mission isn’t to make board members comfortable—it’s to serve its members. And that requires a board that’s willing to do more than just go along to get along.

Making Your Board Meeting Agenda More Strategic

/0 Comments/in /by

Boards can keep their focus on strategy sometimes by tweaking small things like the board meeting agenda. Prioritizing strategic discussion early in the board meeting forces this focus, downplays the operational to the benefit of all involved.

By Kevin Smith

Prompt: An unorthodox board meeting room. From Leonardo.AI

I’ve seen a lot of credit union board meeting agendas. They’re not identical, but they do tend to be pretty similar. It’s pretty common for the consent agenda to be the first item. This can feel like a big  of something accomplished right away – with a whole lot of bullet points underneath! It feels like momentum gathering, right? Now, don’t get me wrong. I’m not knocking the consent agenda. You absolutely should be using it. And if you aren’t go here and explore what it is. It’s fabulous. But I’m going to throw a bit of a wrinkle here and suggest that it shouldn’t be the first item on your board agenda.

Listen to Tim

This concept comes from my partner, the inimitable Tim Harrington. He and I have been spreading this idea whenever possible, and that is to make sure that strategic discussion is the first item on your board agenda. Prioritize it!

Prioritize

Prompt: An unorthodox board of directors meeting room designed by Pablo Picasso. From Leonardo.AI

What often happens is that we like to get a bunch “must do” items checked off of our agenda and out of the way so that we can get to the “big” stuff. Then, inevitably, these perfunctory, “must do” items bring up questions that need answers, and side tracks, and rabbit holes. The next thing you know, you’re at the end of the scheduled time and there’s nothing left for the juicy strategic discussions. Either you’re out of time or out of gas for the most important stuff. And let’s be honest – many of those “must do” check marks lead you into operational weeds, don’t they? (I know within reason that they do because I work with a lot of boards and I hear about it constantly.)

Tim told me about one of his clients that made this simple change to the agenda and the fabulous results that they got. They told him of their inevitable decline into operations with the first couple of items in their agenda and the constant short shrift that strategy got, OR, how very lonnnnggg their meetings became. By putting strategy first, they got to the good discussion, but then were able to “fit in” the rest of the items without devolving into the weeds. It’s efficient in so many ways. They were amazed at how different the tone of the meetings was, and how much better.

No Copy And Paste

Prompt: An unorthodox board of directors meeting room designed by Henri Matisse. From Leonardo.AI

Many of you may be using ctr+C and ctr+V for your agendas and have for a very long time. I challenge you to shake things up a bit. Try something new. Spend more time on the most important element of your job as a director. It’s amazing how some minor adjustments to the nuts and bolts of the job can have such a profound impact on the work you do. It’s important to look carefully and regularly ask, “why do we do it this way?”

Now … don’t get me started on the shape of the table in the board room and who sits where …. A discussion for another time.

About the Images

Naturally, I’m jumping on the AI bandwagon like everyone else. (I’m here to learn.) And since my blog topic was about shaking things up a bit I wanted to see what Leonardo.AI would spit out for me. 

The first image prompt was “an unorthodox board meeting room.” And what you see is pretty M’eh, in my opinion. Yes, it’s got a few out of the ordinary items in there, like the stuffed owl. But otherwise it looks pretty recognizable. The table shape is as predictable as it gets!

The second image prompt was “an unorthodox board meeting room designed by Pablo Picasso.” Now we have some great things to look at but otherwise, it’s still a predictable board room. It looks like the board room for the Picasso Foundation. Booorrrring!!

The third image prompt was “an unorthodox board meeting room designed by Henri Matisse. Now we’re getting somewhere! It’s my favorite, but then again Matisse is my favorite as well. At least the word “unorthodox” carries some weight here. 

Honestly, all three were disappointing. We’re learning that AI has some interesting things to show us, but there are certainly limitations. Maybe I need to work on my prompts? Human creativity is far superior. (But what will these look like in a few years?) 

You Can’t Do Things Differently Without Doing Things Differently

/0 Comments/in /by

Credit unions as an industry have had to lean in towards rapid change and evolution over the last decade, exacerbated by the pandemic. Boards of directors are starting to (finally) acknowledge the need to try to lean in to these changes. Yet, despite these good intentions, often the lean in turns to lip service when they fail to actually “do things” differently in the boardroom.

By Kevin Smith

There certainly aren’t a lot of silver linings from the pandemic. As a matter of fact, I don’t even like presenting it in this light. But one angle that I think we can all agree on is that credit unions, who aren’t known for their speed in change, found out that they could pivot on a dime when they had to. It was fabulous to see worried credit union leaders and their staffs adapt and figure things out pretty quickly. It’s my hope that we all embrace this as a new skill set and keep flexing that muscle. Indeed, many have.

In that light, we also saw some slow to move boards have their eyes thrown wide at the steps necessary to keep working towards the credit union’s purpose. Directors faced the unsettling predicament and supported their leadership and staff as they made fairly radical moves to keep the organization open and serving members who desperately needed their help. Most rose to the challenge and it was fantastic to watch (stressful as it was).

I Worry About Lip Service (and everything else)

Now when I worry (and I do worry), it’s about falling back into old patterns, inertia and complacency. Mostly what I notice from directors is significant embracing of the language of change, particularly when they talk about their leadership and the operations. But what I’m seeing less is boards leaning in themselves to changing their patterns and approaches in the board room and in their governance work.  

It’s not exactly lip service to embracing change that I see. Board members seem very genuinely supportive of the need for faster evolution and development at the operational level. Though it looks a lot more like lip service in regard to changing at the governance level. The two need to happen in synchrony to be most effective.

Snark Alert

Hence the snarky title of this post: You can’t do things differently, if you don’t do things differently.

  • Does your monthly agenda basically a template reused month to month?
  • Do your board meetings have a very predictable flow?
  • Are the same people talkative (or quiet) without fail?
  • Has your board packet had the same format for, oh, over a decade?

These may be red flags that the board is in a rut.

*(Here’s a fun, or maybe terrible, exercise: Challenge the senior leadership to do the funniest skit possible, while performing as the board of directors. This “court jester” approach will reveal any predictability and stereotypes that bubble to the surface. Warning: you may need thick skin for this, but it will certainly be educational.)

Yeahbuts

Naturally I come prepared for the Yeahbuts.

  • “Yeah, but it took us a long time to develop this approach and it works really well.”
  • “Yeah, but we have a lot of work to do and this is efficient.”
  • “Yeah, but the regulators are expecting xyz.”
  • “Yeah, but you’re suggesting change for change’s sake.”
  • “Yeah, but all of this change is going to cause a lot of extra work for the board and the staff.”

I’m not suggesting reinvention every month, or change for change’s sake only. I am suggesting that the entire board look carefully at what they do, question it, and evaluate it in light of the changes the world has made around you. Make sure that anything that fits the category of “this is the way we’ve always done it” gets careful examination for relevance.

Suggestions for Inspection

  • The board agenda: are there interesting discussions, not just monthly updates?
  • Once a year (or as needed), make a determined effort to refine an element of the board packet that makes it easier. [Some of you may need a full revamp. This is more effort. Tackle it. Others may be able to do a regular tweak.]
  • Board chairs: review the personalities in the room. Find out how to change the dynamics of predictable discussions. (Have a one-on-one chat with all directors and ask them for help.)

Support for the Change-Hesitant

Not everyone embraces change. Some actively push back against it. But the adage holds true: “The only constant is change.” So, I encourage directors to have a discussion to really understand how you may be doing things differently to support the change in the operations. You will need to support and understand those who are resistant and help them face the approach with strength. It’s worth it.

What Does ChatGPT Know About Credit Union Boards? (And Do You Want to Know?)

/0 Comments/in /by

I asked ChatGPT what is the biggest failing of credit union boards of directors. It spit out a very interesting (dare I say “thought”-ful?) list. A healthy director and board will consider these potential failings with a hard look in the mirror.

By Kevin Smith

ChatGPT

What does ChatGPT know about credit union boards of directors?

I’m generally not a bleeding-edge adopter of technology. But I’m no Luddite either. My preferred category is fast-follower. So, this whole AI, large language model of machine learning thing has finally gotten my attention. (Given it’s prevalence in the media, it’s no wonder.) And I decided to try it out. What’s this got to do with credit union boards of directors, you say? Well, let’s see.

I decided to find out what ChatGPT had to say about something I felt I knew something about: credit union boards, so that I could evaluate the response. And the prompt that I chose was this:

What is the biggest failing of credit union boards of directors?

And here is ChatGPT’s Response to the prompt:

While credit unions generally operate with a member-centric focus and strive to fulfill their mission of serving their members, they are not exempt from potential challenges and failings. One of the most significant failings that credit union boards of directors might encounter is a lack of diversity and inclusion. Here are some aspects to consider:

  1. Lack of Diversity on the Board: Credit union boards may suffer from homogeneity in terms of demographics, professional backgrounds, and experiences. This lack of diversity can limit the board’s ability to consider different perspectives and adequately represent the diverse needs of their membership.
  2. Insufficient Expertise and Skills: Sometimes, credit union boards might lack specific expertise, such as financial, technology, or marketing knowledge, which are crucial for making informed decisions and staying competitive in the financial industry.
  3. Limited Understanding of Membership Needs: If the board is not adequately connected to the credit union’s membership or lacks insight into their evolving needs, it may lead to misaligned strategies and services that do not effectively address member concerns.
  4. Ineffective Governance and Oversight: Boards that do not have clear governance structures or fail to provide proper oversight might face challenges in ensuring financial stability, managing risks, or maintaining compliance with regulations.
  5. Resistance to Change: In rapidly evolving markets, credit unions must adapt to new technologies and member preferences. If the board is resistant to change or slow to respond to shifts in the financial industry, the credit union’s ability to remain competitive and relevant could be compromised.
  6. Inadequate Succession Planning: A failure to plan for board member succession can lead to a lack of continuity in leadership and a loss of institutional knowledge. Effective succession planning ensures a smooth transition and fosters a long-term vision.
  7. Weak Communication and Engagement: Boards that do not actively engage with their members and fail to communicate transparently may lead to dissatisfaction among members and weaken the credit union’s sense of community.

It’s important to note that not all credit unions will experience these challenges, and many credit union boards effectively address and overcome these potential failings. By promoting diversity, fostering a culture of continuous learning, engaging with members, and maintaining strong governance practices, credit union boards can improve their ability to serve their members and fulfill their mission effectively. Regular assessments, training, and ongoing self-evaluation can also help boards identify areas for improvement and ensure they are meeting the evolving needs of their members.

End of ChatGPT and back to Kevin. 

Keep in Mind

Keep in mind that what ChatGPT does is “scrape” the interweb-tubes for its information, which means that what you see above is information that came from humans at some point.

What do you think? What do I think?

What do you think of this list of “failings?” Does it resonate with you? With your board? With your experience of the credit union movement?

What I think is that people in our industry don’t like to dwell on the negative for fear of being seen as pessimistic. But a lot of what is said above, is also said in hallways outside of conference rooms, or in one-one-one conversations. And I agree with most all of what’s in that list … to one degree or another.

Before You Get Defensive

Now before you start drafting a salty comment or email to me about how your board isn’t like that and isn’t failing, etc., please take a breath. I make a clear caveat quite often: This list of failings that I agree with represents a broad generalization about boards in the credit union movement as a whole. Notice very carefully the final paragraph from the results, starting “It’s important to note that not all credit unions ….” Isn’t that interesting how ChatGPT has its very own caveat about this not being true of every organization? I’m giving it some added style points for that flourish as I wasn’t expecting that.

What Do We Do With This?

Every board would be prudent to review this list and put it on an agenda for discussion. (This would be a great topic to bandy back and forth on your board portal.) Every board should reflect in an honest way about where they stand on all of these issues. It’s very important to acknowledge that it can be very difficult to see your own failings, to have anything but a rosy view of how your board is doing. No one ever says, “Yes, it’s me. I’m resistant to change.” But it is very clear that credit union boards can be prone to this issue. What’s worse, is when there’s one board member with this problem that is holding back the full board but no one will confront them on it.

This requires candor. It requires trust. It requires a full-fledged desire to do what’s best for the credit union. And it’s very worthwhile.

So, thank you to ChatGPT for this interesting exercise. Now … what do you think? As always, we’d like hear your thoughts.

Protect Your Board Meeting Time & Agenda Like a Mama Bear!

/0 Comments/in /by

The time at the board meeting should be carefully thought out and protected as the limited and valuable resource that it is. Boards that meet once a month for about two hours need that time focused on the most strategic and the most valuable items. Not on operational details, updates and review (rear view mirror) items. 

by Kevin Smith

That’s right! Like a mama bear protecting her cubs. That’s how fierce you should protect your board meeting time and agenda. Modern credit union boards that I work with generally meet for a couple of hours once a month. That’s not a lot of time. Boards need to use that time very wisely. It’s a scarce resource. The idea that things have become more complex is so commonplace that it’s an overwhelming cliche now. But it’s true, which makes the need to protect the agenda and the time all the more critical. Don’t let “busy work” get in the way of “important work” and discussion at the highest level.  

What Happens a Lot

When we survey boards about board time use (“Do you focus on what’s important and strategic?”), we get a regular “oh, yeah, sure we do.” But what we observe, and what the one-on-one conversations tell us is about the amount of time spent on the trivial, the operational, or on the distractions. We witness it first hand often enough, too often. There’s a lot of good intention here. But also a lot of slippery slopes about what’s important. 

Many board meetings are taken up with updates on projects, or extensive reviews of last month’s or last quarter’s numbers. There’s time spent reviewing policies and updating them. All of this is required by the board, and it’s necessary work. But does it need to happen during the limited time of the board meeting? (Pssst… the answer is “no” unless there are concerns or discussion needed.) CEOs and CFOs spend an awful lot of time giving verbal updates during board meetings, taking up valuable time for strategic discussion. (See below.) 

Often, board members aren’t as prepared as they should be for meetings. This results in people needing to rehash or explain things, taking up valuable time for strategic discussion. 

What Should Happen

First things first: adopt the consent agenda if you haven’t already. It seems like most have done this. It’s a huge time saver and it keeps things focused. However (comma) this only works if everyone does the preparation and the pre-reading. If members aren’t fully prepared for the consent agenda, then in reality you are just skipping things. You must hold each other accountable for coming prepared. 

Do as many pragmatic things as possible in between board meetings. Use your board portal and electronic tools as much as possible. (Again, hold each other accountable for doing this.) There’s a lot of review that directors do via the portal electronically before the board meeting. 

Have the CEO and any other staff members giving an update record these updates via video. (No, don’t have them write these updates because it will take them too long and you’ll doze off while reading them.) Make sure that you communicate to them that these videos should be casual, that they don’t have to be rehearsed or take too long. This should be the same thing they’d do in the meeting, just done ahead of time. Board members MUST review these and send their questions before the board meeting. (Accountability!) 

Structure your agenda so that the strategic discussions come early and have time allotted for them. There’s nothing worse than having several updates, or pragmatic issues “run long” and take up the time of a strategic discussion and cut it short (so that the meeting can be done “on time.” :-? )

What Isn’t Going to Happen

Things aren’t going to get easier. They’re not going to get less complex. They aren’t going to suddenly take less time. But you CAN protect the meeting time and the agenda for the best work. 

If this all sounds like a lot of work or too much work, I’m not going to mince words: then this isn’t the right job for you. (Yes, it’s a job, even if it doesn’t pay anything.) Credit union board work is harder and more complex than it used to be, requiring the right kind of skill, focus, and, yes, time. We can not expect things to be like they were in the “good old days.” 

Let’s face it – strategic discussion is the most rewarding work of the board. You can structure things so that they’re as efficient as possible. You can hold each other accountable for doing the work in the best time and place. And you can improve the performance of the board. We all need to aim high. It’s a fabulous job worth doing. Our members need us. 

P.S. 

Check out the interesting results from last month’s poll about Boards Behaving Badly! It was interesting to see how spread out the results were. None of these personalities seems significantly more pervasive than the rest. As of this writing we had 96 respondents. Go ahead and keep adding to it! Make sure you check as many as you need and click the “Show Results” button on the bottom. 

As always, we encourage you to leave comments. 

Dedicated to YOUR Success . . .

Join our Newsletter

Sign up now to receive Tim’s blog, our newsletter and occasional updates.

Sign Up Now

The TR Blog

Contact Us

TEAM Resources
2665 N. Indian Ridge Dr.
Tucson, AZ 85715
Phone: 520.290.5721

Email Us

Return Info

© Copyright 2022 - Site design by Sprout Studio in Madison, WI