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The Board That Governs Generously (And Why That’s Not a Compliment)

by That One Consultant You Hired and Then Ignored

There is a type of credit union board that every CEO secretly dreams about.

They show up prepared. They ask reasonable questions. They approve the budget without drama, accept the strategic plan with enthusiasm, and conclude every board meeting with a warm round of applause for management’s hard work. They are supportive. They are collegial. They finish on time, which means the CEO can make their dinner reservation, and the board chair can get home before the game starts.

They are also, in the truest sense of the phrase, asleep at the wheel — and the wheel is pointed at the members’ assets.

Welcome to the board that governs generously: the well-meaning, deeply pleasant governance failure that nobody talks about because it doesn’t yell, doesn’t micromanage, and has never once asked about the break room chairs. It just quietly fails the members it was elected to protect, with excellent manners, a unanimous vote, and a really nice gift basket for the outgoing director.

The Other Ditch

Most governance conversations focus on boards that do too much — the ones that interrogate invoices, re-litigate settled decisions, and treat every board meeting like a congressional subcommittee hearing with worse lighting and no C-SPAN coverage. We wrote about that board. That board has problems.

But there is a ditch on the other side of the road, and it is considerably easier to drive into, because the road into it is smooth, well-lit, and everyone on the bus is smiling.

The board that governs generously has convinced itself that support and accountability are the same thing. They are not. Support is what you give a CEO who is making good decisions. Accountability is what you give a CEO who needs to make better ones. Conflating the two doesn’t make you a good board. It makes you a very expensive cheerleading squad with voting rights and a fiduciary duty you’ve quietly decided not to exercise.

The cheerleading squad, for the record, is not what the members had in mind when they cast their ballots.

How It Happens (A Tragedy in Four Acts)

Nobody sets out to build a board that nods enthusiastically at everything. It develops gradually, through a series of individually reasonable decisions that accumulate into a collectively catastrophic posture.

Act One: A CEO who is genuinely talented arrives. The board, correctly recognizing this, gives them room. Room is good. Room is appropriate.

Act Two: Room becomes latitude. Latitude becomes deference. Deference becomes a standing pattern indistinguishable from a policy.

Act Three: Somewhere in that progression, the board stops asking hard questions — not because there are no hard questions, but because asking them feels vaguely disloyal, like questioning the chef at a dinner party they’re also hosting.

Act Four: A few board elections favor candidates who are enthusiastic about the credit union rather than skeptical in the useful sense, pushback is gradually reframed as negativity, and the board has quietly outsourced its judgment to the management team it was hired to oversee. Everyone is very pleasant about it. The members have no idea.

Curtain. Applause. Unanimous vote.

A Field Guide to the Generous Board

The generous board is hard to spot from the outside because it looks like harmony. Meetings run on time. Votes are unanimous. Strategic presentations land without meaningful challenge. The annual CEO evaluation produces a score that rhymes with “outstanding” and a salary adjustment that rhymes with “automatic.”

Here is how you know you might be sitting on one:

The last time a strategic initiative received substantive pushback was during a previous administration — of the credit union, not the country, though you may have to stop and think about it.

The CEO has learned to bring decisions to the board after they’ve been made, framed as updates rather than proposals, because the outcome is the same either way and this eliminates the awkward middle part.

The board’s version of a tough question is “That sounds promising — what’s the timeline?” This is then followed by appreciative murmuring and a motion to approve.

Questions that begin with “Have we considered the downside scenario” are experienced as vaguely hostile. They are not asked twice.

The annual strategic retreat produces a plan that is enthusiastically endorsed, framed in an attractive document, placed in a binder, and then consulted approximately never — until next year’s retreat, when it is replaced with equal enthusiasm and a better font.

Nobody in the room is unhappy. Nobody outside the room is protected.

What It Actually Costs

Here is where the generous board’s tab comes due, and it is not a small tab.

An organization without meaningful board oversight is an organization where the only check on strategic miscalculation is the CEO’s own good judgment. That is a lot of faith to put in any single human being. Great CEOs, notably, do not want this. Great CEOs actively want a board that challenges them, because they have enough professional self-awareness to know that unchallenged assumptions are where strategy goes to die quietly, expensively, and in ways that eventually end up in trade press.

What the generous board produces instead is an environment where risk accumulates unexamined, the CEO’s blind spots go unaddressed because nobody in the room has developed the habit of addressing them, and strategic drift is mistaken for strategic stability because everything looks calm from a altitude of zero feet, which is also the altitude at which you cannot see the cliff.

And when something eventually goes wrong — when the loan portfolio develops an interesting texture, or the membership numbers head quietly south, or the competitive threat that management has been privately anxious about for eighteen months finally arrives with luggage — the generous board will discover that support is not, in fact, a hedge against consequences.

The members whose assets they were elected to protect will discover this at roughly the same time. Probably through a letter.

Accountability Is Not the Opposite of Support

This is the part where some directors shift uncomfortably in their chairs, so let’s be precise.

Holding your CEO accountable does not mean distrusting them. It does not mean interrogating their expenses, auditing their calendar, or approaching board meetings with the energy of someone who has watched too many courtroom dramas and has always wanted a turn.

It means agreeing, in advance, on what success looks like — and then actually checking whether that’s what’s happening. It means asking the questions that are uncomfortable precisely because they matter. It means understanding that the highest form of support you can offer a capable CEO is a board serious enough to provide genuine oversight, because genuine oversight is what separates a well-governed institution from one that is one bad quarter away from a very difficult conversation with its regulator.

A board that never challenges anything isn’t kind. It’s decorative.

The members of your credit union did not elect you to be the CEO’s most reliable fan. They elected you to be the institution’s last line of defense. Those roles occasionally overlap. They are not the same job. Confusing them is not a culture. It’s a liability.

The break room chairs were never the point.

The point is whether your board is actually governing — or whether it has decided that unanimous votes, prompt adjournments, and the warm collegial glow of a room where nobody ever disagrees constitutes a governance program.

It does not. It constitutes a very pleasant way to let an institution drift.

Generous boards sleep well. Whether the members they serve can say the same is, interestingly, a question nobody at the board table ever thinks to ask.

[*Yes, all of these images were created with AI. All the cool kids are doing it. Don’t @ me, bro!]

#boardgovernance #boardeffectiveness #creditunionboards #accountability #CEOoversight #fiduciaryduty #boardeducation #governancematters

Too Much of a Good Thing: The Hidden Perils of Capital Hoarding

by That One Consultant You Hired and Then Ignored

If you’re a board member at a credit union, chances are you’ve said it. Maybe in a hushed boardroom voice, maybe with great conviction over lunch, maybe carved into stone tablets. It goes something like this:

“You can never have too much capital.”

Cue the heavenly choir and the flutter of regulatory examiners descending on clouds of GAAP. Capital, after all, is safety. Capital is security. Capital is your warm, fuzzy blanket on a cold night of economic uncertainty.

Except—and please, clutch your pearls tightly here—you can have too much of it. Yes, really. And when you do, it’s not just inefficient. It’s strategically dangerous.

Let’s talk about it, shall we?

Capital: From Safety Net to Strategic Straitjacket

First, let’s get the obvious out of the way. Capital is good. Regulatory capital is essential. You need it. The NCUA says so, and if the NCUA says jump, most credit unions are halfway to orbit before they ask how high.

But capital is a tool, not a trophy. When your capital ratio drifts into the teens— 13%, 14%, 15% and beyond—you’re not just safe. You’re overdressed for the occasion.

Imagine showing up to a beach party in full medieval armor. That’s what it’s like running a 15% capital ratio in today’s credit union market. Impressive? Sure. But also a bit ridiculous, and not particularly helpful when it’s time to swim—or compete, innovate, or grow.

The Law of Diminishing Return on Paranoia

Many boards live by a simple mantra: More capital equals more safety. It’s neat. It’s easy. It’s… mathematically adorable.

But here’s the truth: every extra dollar of capital that sits unleveraged on your balance sheet is a member dollar not working, not producing value, not returning benefit.

Imagine telling your members, “We’ve taken your money, and we’re keeping it locked away in a vault, doing nothing, because someday the sky might fall. And if it doesn’t? Well, at least we felt warm and fuzzy.”

Not exactly the value proposition credit unions are known for.

And if your board’s idea of risk management is “hoard capital like it’s 2008 and Ben Bernanke just texted ‘brace yourself,’” then you’ve essentially traded strategic growth for a very expensive security blanket.

The Catastrophe That Never Quite Arrives

Boards often justify massive capital buffers by invoking a theoretical calamity so devastating it would make Mad Max look like a municipal planning meeting.

“We need to be ready for the worst-case scenario.”

Great. Let’s play that out.

Say a 500-basis-point rate shock, a recession, a regulatory overhaul, and a complete collapse of consumer confidence all hit at once. Terrifying? Yes. But unless your balance sheet is made entirely of subprime balloon loans and wishful thinking, the odds of such a cataclysm wiping out your 10% capital buffer and then some are vanishingly low.

And even if it did, your regulator is unlikely to high-five you for sitting on a 15% buffer when 12% would have sufficed and the other 3% could have been used to actually serve members. You don’t get a trophy for hoarding potential.

The worst-case scenario your board keeps preparing for has a name: it’s called opportunity cost. And it’s happening right now, quietly, while you congratulate yourselves on your capital ratio.

“But the Regulators Like It!”

Sure. And your dentist likes it when you floss twice a day. Doesn’t mean it’s a viable identity.

Yes, regulators appreciate strong capital. But they also value operational effectiveness, loan growth, membership value, and risk-informed decision-making. They don’t want to see you building capital castles while the market passes you by.

Running a credit union solely to appease your examiner is like designing a car for your mechanic. Sure, they’ll love the engine access, but no one’s going to buy the thing.

There is a term for what happens when capital accumulation becomes the mission rather than the means: pathological aversion to lending. It shows up in your Call Report. It shows up in your loan-to-share ratio. And eventually it shows up in your membership numbers, as the members who actually needed a credit union found one that wasn’t afraid to be one.

Strategic Growth: Now Hiring Capital

Every dollar sitting in capital at a 14% ratio—when 10% would suffice—is a dollar not deployed into strategic initiatives. That’s a new loan program not launched, a branch not modernized, a digital upgrade not implemented, a member segment left underserved.

You are, quite literally, overcapitalized and underutilized. That’s not caution—it’s stagnation dressed up as virtue.

And CEOs? If your board is holding you hostage with ultra-conservative capital policies, congratulations: you’ve been promoted to Chief Preservation Officer. Your job is to sit on a pile of money and politely decline to use it. You will be evaluated on how well the pile stays piled.

That’s not strategy. That’s surrender with excellent documentation.

The PR Problem You Didn’t Know You Had

There’s also a transparency problem with excessive capital. NCUA Call Reports are public. Peer comparisons are available to anyone who cares to look. And when your capital ratio sits at 15% while your peers are competing effectively at 10%, people start asking questions.

Why is this credit union sitting on all that capital?

Is it strategic discipline? Institutional caution? Or is it, perhaps, a board that has quietly confused accumulation with achievement—and hasn’t noticed that the members stopped benefiting from either?

The story the market tells about an overcapitalized credit union is rarely flattering. It usually rhymes with “afraid” or “stuck.” Neither is a brand position worth defending.

So, What Should a Board Do?

Ah, finally, solutions. You were getting anxious, weren’t you?

  1. Set a capital target, not a capital shrine. Create a realistic, risk-informed capital target based on actual scenario modeling—not vibes, not trauma from the Great Recession, not the vague sense that more is always better. A target implies a ceiling. A shrine implies worship. Know the difference.
  2. Regularly reassess the buffer. If you’ve carried 300+ basis points of excess capital for five consecutive years, that’s not a buffer—that’s a moat. And you’re the dragon asleep in the middle, guarding assets your members can’t access and your mission can’t use.
  3. Tie capital deployment to strategy. Capital should be the fuel for your mission, not a museum piece. Lend it. Invest it. Modernize with it. The cooperative model was not designed to produce the tidiest balance sheet in the graveyard.
  4. Educate the board—yes, again. A board stuck in the “more is always better” loop may need a structured conversation about how capital, risk, and growth actually interact. This is not an insult. It is a fiduciary necessity. Hoarding is not a strategy. It is a habit. And habits can be broken.

Closing Thoughts from Your Favorite Snarky Consultant

No one is asking you to gamble with your capital. Prudent reserves matter. Regulatory compliance matters. The ability to weather a genuine storm matters.

But don’t confuse risk management with strategic paralysis. The real danger isn’t the next economic downturn—it’s the slow erosion of relevance while your capital ratio quietly creeps toward 16% and your members quietly wonder why nothing ever changes. Why the rates aren’t better. Why the app still looks like that. Why the loan got declined when the bank down the street said yes.

So be brave. Be strategic. Be willing to sweat a little. And for the love of all that is cooperative and not-for-profit, stop worshipping at the altar of excessive capital.

Because in the end, the goal isn’t to die the richest credit union in the graveyard.

It’s to live boldly enough that your members actually notice.

———

Word count: ~1,100

Your Strategy Isn’t Failing — Your Decision Velocity Is

By Kevin Smith

Credit union boards love to say they are “strategic.” They hold retreats. They commission market studies. They debate mission drift versus growth. They approve multi‑year strategic plans that are color‑coded, laminated, and confidently optimistic.

And yet, somehow, the credit union still feels stuck.

Products lag peers. Growth underperforms projections. Fintechs feel faster. Members behave differently than expected. Management keeps coming back with revisions, extensions, or “next‑phase” initiatives.

At some point, someone asks the uncomfortable question: Is our strategy wrong?

Usually, the answer is no.

More often, the problem isn’t strategy. It’s decision velocity.

What Decision Velocity Really Means (and Why Boards    Underestimate It)

Decision velocity is not about rushing. It’s about how quickly an organization:

  • Identifies a decision that actually matters
  • Gets it to the right level of authority
  • Makes a clear call
  • Moves on

Credit unions are generally thoughtful, risk‑aware, and consensus‑oriented. Those are strengths — until they aren’t.

In many boardrooms, strategic decisions move slowly not because they are complex, but because:

  • The decision is revisited multiple times “for comfort”
  • The board is unclear whether it is setting direction or approving execution
  • Risk conversations sprawl without resolution
  • Additional data is requested long after the signal is clear

The result is strategic drift disguised as prudence.

Why Slow Decisions Quietly Undermine Strategy

Markets do not pause for governance hygiene.

When decision velocity is low:

  • Opportunities age out before approval
  • First‑mover advantages disappear
  • Management defaults to incrementalism
  • Strategy becomes retrospective instead of directional

Boards then misdiagnose the problem. They conclude the strategy needs updating, refreshing, or re‑visioning — when what actually needs fixing is how long it takes to decide anything consequential.

A slow organization with a brilliant strategy will still lose to a faster one with a merely adequate plan.

The Hidden Governance Causes of Slow Decision Velocity

Credit union boards rarely intend to slow things down. But governance design often does the work for them.

Common culprits include:

  1. Blurred Decision Rights

Boards sometimes drift into execution decisions while avoiding strategic ones. Management waits for clarity. Everyone is polite. Time passes.

If the board cannot clearly answer, “Is this a direction decision or an implementation decision?” velocity will suffer.

  1. Risk Without Resolution

Risk discussions expand easily. Resolution does not.

Many boards are excellent at surfacing risk and less comfortable deciding how much risk is acceptable in pursuit of strategy. Without explicit risk boundaries, every decision feels unprecedented.

  1. Consensus as the Default Setting

Consensus feels cooperative. It is also slow.

Not every strategic decision requires unanimous comfort. When consensus becomes the goal rather than clarity, velocity drops — and accountability blurs.

  1. Board Calendar Mismatch

Strategy discussions that occur quarterly cannot support environments that change monthly. Boards then respond with special meetings, email votes, or delayed approvals — none of which are efficient substitutes for intentional governance design.

What Faster Boards Do Differently (Without Being Reckless)

High‑functioning boards do not move faster by caring less. They move faster by deciding better.

They:

  • Separate direction from execution
  • Define risk tolerance before decisions appear
  • Use consent or majority‑based decisions when appropriate
  • Escalate fewer items because authority is clearer

Most importantly, they recognize that speed itself is a strategic variable.

Questions Credit Union Boards Should Be Asking

If your strategy feels stalled, try these instead of another planning refresh:

  • How long does it take us to make a strategic decision once it reaches the board?
  • Which decisions do we routinely revisit — and why?
  • Where are we asking for more certainty than the environment can provide?
  • What decisions should management be empowered to make without us?

The answers are often more revealing than the strategy document.

The Real Strategic Advantage

In the next decade, credit unions will not out‑strategize competitors on paper.

They will out‑decide them in practice.

And the boards that learn to measure, manage, and intentionally improve decision velocity will discover something surprising:

Their strategy was never broken.

It was just waiting for permission to move.

Board Discussion Questions

  • Where do we see decisions consistently slowing down — and what is actually causing the delay?
  • Which strategic decisions have we revisited multiple times without materially new information?
  • Are we clear about which decisions belong to the board versus management?
  • Where might our desire for consensus be reducing accountability or speed?
  • If decision speed became a competitive advantage, what would we change first?

Your Real Strategy Is Risk Avoidance (Even If You Won’t Admit It)

By Kevin Smith

If you asked your credit union board to describe its strategy, you’d likely hear words like growth, innovation, member-centric, or future-ready. No one ever says, “Our strategy is to avoid risk at all costs and hope nothing bad happens on our watch.”

And yet.

If we’re being honest—and governance works better when we are—many credit union strategies quietly default to risk avoidance. Not because boards are lazy or disengaged, but because avoiding risk feels responsible. It feels safe. It feels like the kind of thing a regulator would nod approvingly at while flipping through your exam report.

Unfortunately, risk avoidance is still a strategy. It’s just rarely the one boards think they’re executing.

The Strategy You Get When You Don’t Choose One

Risk avoidance rarely shows up as a formal board resolution. It emerges slowly, almost politely.

It sounds like:

  • “Let’s wait and see how this plays out.”
  • “Other credit unions are doing it—let’s see how it goes for them first.”
  • “We don’t want to get ahead of the regulators.”
  • “This feels like a distraction from our core business.”

Individually, these statements seem reasonable. Collectively, they form a strategy of inertia. Over time, the credit union becomes very good at not doing things. No failed pilots. No uncomfortable conversations. No bold moves that might require explaining later.

The board doesn’t explicitly decide to avoid risk. It just consistently chooses the least controversial option available. And eventually, that is the strategy.

Remember how Tim Harrington puts this –  “There’s risk foolishness, and risk intelligence.” There’s a way to do this intelligently while taking on the risk in your approach, rather than avoiding it altogether. 

When “Being Careful” Becomes the Business Model

Credit union boards are, by design, conservative. You are fiduciaries of member assets. You’re not supposed to gamble. That’s good.

The problem arises when caution stops being a filter and becomes the destination.

Boards that lean too far into risk avoidance often share a few traits:

  • They spend far more time discussing what could go wrong than what could go right.
  • Innovation is something management “brings back later with more detail.”
  • Strategic discussions end with no decisions, but lots of appreciation for the conversation.
  • The phrase “that’s not how we’ve done things” is treated as wisdom rather than a warning sign.

Ironically, these boards often believe they are being strategic simply because they are thoughtful. But thoughtfulness without action is just well-documented hesitation.

The Risk No One Puts on the Heat Map

Here’s the uncomfortable truth: boards are very good at tracking certain kinds of risk—credit risk, liquidity risk, compliance risk. There are dashboards. Color-coded charts. Reassuring acronyms.

But there’s one risk that rarely gets equal treatment: the risk of doing nothing.

What is the risk of:

  • Not modernizing your delivery model while member expectations evolve?
  • Not addressing declining relevance with younger members?
  • Not investing in talent because it feels expensive?
  • Not exploring partnerships because they feel unfamiliar?

These risks don’t trigger examiner findings. They don’t show up in next quarter’s numbers. They unfold slowly, quietly, and with remarkable patience.

By the time they’re obvious, the board often says, “This came out of nowhere.” It didn’t. It just wasn’t on the agenda.

Regulation as a Convenient Excuse

Let’s talk about the regulator in the room.

Yes, credit unions are heavily regulated. Yes, compliance matters. And yes, no one wants to be the board that explains a preventable problem to an examiner.

But sometimes “the regulator won’t like it” becomes a catch-all excuse for avoiding difficult strategic decisions—especially when the real issue is uncertainty, not prohibition.

Many boards don’t ask, “Is this allowed?” They ask, “Could this possibly create discomfort?” Those are very different questions.

Regulators generally expect boards to manage risk, not eliminate it entirely. When boards confuse compliance with strategy, they unintentionally shrink the organization’s future to the size of its last exam.

That’s not safety. That’s stagnation with good intentions.

Innovation Theater and Other Safe Performances

Some boards respond to this tension by engaging in what might be called innovation theater.

There are presentations. There are task forces. There are discussions about “keeping an eye on trends.” Sometimes there’s even a pilot project that never quite scales.

This creates the appearance of forward thinking without the inconvenience of real change. Everyone can feel progressive without actually taking responsibility for outcomes.

Innovation theater is comforting. Real innovation is messy, uncertain, and occasionally unsuccessful. One of these aligns better with risk-averse cultures than the other.

What Risk-Tolerant Strategy Actually Looks Like

To be clear, this is not an argument for reckless decision-making. It’s an argument for intentional risk-taking.

Boards that align risk and strategy tend to do a few things differently:

  • They explicitly define their risk appetite in plain language, not just policy documents.
  • They evaluate opportunities alongside the risk of inaction.
  • They expect management to bring forward options, not fully risk-neutralized proposals.
  • They treat learning from failure as part of governance, not a breach of trust.

Most importantly, they recognize that avoiding all risk is itself a high-risk position in a changing financial services landscape.

The Question Boards Rarely Ask (But Should)

Here’s a question worth adding to every strategic discussion:

“What are we choosing not to do—and what does that choice cost us?”

This forces the board to acknowledge that declining an opportunity isn’t neutral. It’s directional. It shapes the credit union just as much as a bold initiative would.

When boards fail to ask this question, they quietly accept a future that looks a lot like the past. Which feels comfortable. Right up until it doesn’t.

Final Thought: Honesty Is a Strategic Asset

Risk avoidance isn’t a moral failing. It’s human. It’s understandable. And in moderation, it’s responsible.

But when boards refuse to acknowledge that fear and caution are driving strategic outcomes, they lose the ability to course-correct.

The most effective boards aren’t fearless. They’re honest—about tradeoffs, about uncertainty, and about the fact that every strategy involves risk, including the strategy of standing still.

Because at the end of the day, “We played it safe” is rarely the legacy boards intend to leave behind.

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

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.

 

Credit Risk Oversight (2025 Trends): A Board Member’s Survival Guide


Credit risk: the phrase alone is enough to make some board members grip their coffee cups just a little tighter. It’s not glamorous, it’s not fun, and it will never trend on TikTok. But in 2025, with examiners sharpening their pencils and loan portfolios groaning under the weight of rising delinquencies, it’s the one topic you can’t afford to snooze on (though, let’s be honest, some still will).

Why Credit Risk is Back on the Front Burner

Remember when everyone thought loan losses were a relic of the 2008 era? Good times. Unfortunately, rising consumer debt, high interest rates, and the eternal optimism of borrowers who believe their 2012 Honda Civic will last forever have put us squarely back in the land of credit risk headaches.

The National Credit Union Administration (NCUA) has politely informed boards that 2025 supervisory priorities will focus heavily on—surprise—credit risk. Translation: examiners are ready to ask uncomfortable questions like, “What is your board doing to make sure you’re not funding someone’s third jet ski purchase?”

The Big Trouble Spots

  1. Auto Loans
 – Used auto values are wobbling, and borrowers are stretching repayment terms longer than the average Marvel movie franchise. When you’re still making payments on a vehicle that’s been recycled into a washing machine, risk creeps in.
  2. Credit Cards
 – Household debt is up, and delinquencies are following suit. Apparently, people cannot pay off that Vegas trip charged three years ago. Who knew?
  3. Real Estate Lending
 – Higher interest rates mean fewer refis, tighter affordability, and more stress on members’ budgets. The phrase “house poor” was coined for a reason.
  4. Member Business Loans
 – Every third cousin with a food truck idea is back, and suddenly the board packet has a 50-page loan proposal for “organic, free-range burrito delivery.” Sound lending principles still apply, even if the salsa is really good.

What Boards Should Be Asking (Without Putting Anyone to Sleep)

A board doesn’t have to be full of credit risk experts, but it does need to prove it has a clue. Here are the questions that say, “We’re paying attention,” without requiring you to go back for a master’s in finance:

  • What are delinquency and charge-off trends telling us? Hint: “They’re fine” is not a satisfying answer.
  • How are loan loss reserves being adjusted? Think of reserves as the rainy-day fund, except it’s already drizzling.
  • What’s management’s stress testing showing? If the only stress test is your CEO’s Fitbit during budget season, that’s a problem.
  • Do our loan policies reflect current realities? Policies written in 2017 may not account for today’s 84-month auto loans and the return of avocado-toast inflation.

How Boards Accidentally Make Things Worse

Let’s be real: sometimes boards, in their enthusiasm to “help,” manage to stir the pot unnecessarily. Common mistakes include:

  • Chasing Yield: Saying, “We need more loan growth!” without asking, “At what risk?” is like demanding dessert without checking if the oven’s on fire.
  • Micromanaging Underwriting: If you find yourself debating whether a member’s side hustle counts as “reliable income,” you’ve crossed into staff territory.
  • Ignoring Early Warning Signs: That polite uptick in 30-day delinquencies is the financial equivalent of your car making a funny noise. Ignoring it doesn’t make it go away.

Best Practices That Don’t Require a Finance PhD

  • Regular Credit Risk Reports: Ask for reports that show trends over time, not just numbers in isolation. One bad month is noise. Six bad months is a pattern.
  • Board Education: A few hours of training beats three years of pretending you understand risk-weighted assets.
  • Healthy Tension: Challenge management’s assumptions. If projections look suspiciously rosy, ask what happens when the economy sneezes.
  • Diversification: Encourage lending across member segments. If all your loans are in used pickup trucks, you’re one diesel price spike away from heartburn.

Humor Meets Reality: The Jet Ski Test

Here’s a simple litmus test for any lending decision: Would this loan still look good if it were for a second-hand jet ski? If the answer is no, it’s worth asking more questions. The jet ski is the universal symbol of overextended credit and questionable judgment. Keep it in mind during your next board meeting.

The Exam Room: What to Expect in 2025

Examiners are not out to get you (probably). But they will want to see:

  • Evidence the board understands its loan portfolio risks.
  • Minutes that show you asked real questions (not just, “Who brought the donuts?”).
  • Policies that match current lending conditions.
  • Proof that you’re not rubber-stamping every growth idea that comes your way.

In other words, they want you to act like you’ve read this blog post.

Final Thoughts: Boredom is Not an Excuse

Credit risk oversight will never win “most exciting board duty.” But it is one of the most important. Think of it like flossing: nobody loves doing it, but skipping it can lead to painful consequences and awkward conversations with professionals.

Boards that stay curious, ask good questions, and keep a skeptical eye on lending trends will come through 2025 stronger. Boards that don’t? Well, they might just end up as a case study in an examiner’s PowerPoint. And nobody wants that.

At TEAM Resources, we know board work isn’t about glamour. It’s about diligence, accountability, and sometimes resisting the urge to approve the next jet ski loan. Here’s to smart oversight in 2025.

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

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.

 

Too Much of a Good Thing: The Hidden Perils of Capital Hoarding

 by That One Consultant You Hired and Then Ignored

If you’re a board member at a credit union, chances are you’ve said it. Maybe in a hushed boardroom voice, maybe with great conviction over lunch, maybe carved into stone tablets. It goes something like this:

“You can never have too much capital.”

Cue the heavenly choir and the flutter of regulatory examiners descending on clouds of GAAP. Capital, after all, is safety. Capital is security. Capital is your warm, fuzzy blanket on a cold night of economic uncertainty.

Except—and please, clutch your pearls tightly here—you can have too much of it. Yes, really. And when you do, it’s not just inefficient. It’s strategically dangerous.

Let’s talk about it, shall we?


Capital: From Safety Net to Strategic Straitjacket

First, let’s get the obvious out of the way. Capital is good. Regulatory capital is essential. You need it. The NCUA says so, and if the NCUA says jump, most credit unions are halfway to orbit before they ask how high.

But capital is a tool, not a trophy. When your capital ratio drifts into the teens—13%, 14%, 15% and beyond—you’re not just safe. You’re overdressed for the occasion.

Imagine showing up to a beach party in full medieval armor. That’s what it’s like running a 15% capital ratio in today’s credit union market. Impressive? Sure. But also a bit ridiculous, and not particularly helpful when it’s time to swim—or compete, innovate, or grow.


The Law of Diminishing Return on Paranoia

Many boards live by a simple mantra: More capital equals more safety. It’s neat. It’s easy. It’s… mathematically adorable.

But here’s the truth: every extra dollar of capital that sits unleveraged on your balance sheet is a member dollar not working, not producing value, not returning benefit.

Imagine telling your members, “We’ve taken your money, and we’re keeping it locked away in a vault, doing nothing, because someday the sky might fall. And if it doesn’t? Well, at least we felt warm and fuzzy.”

Not exactly the value proposition credit unions are known for.

And if your board’s idea of risk management is “hoard capital like it’s 2008 and Ben Bernanke just texted ‘brace yourself,’” then you’ve essentially traded strategic growth for a very expensive security blanket.


The Zombie Apocalypse That Never Comes

Let’s address the Doomsday scenario. Boards often justify massive capital buffers by invoking a theoretical calamity so devastating, it would make Mad Max look like a family picnic.

“We need to be ready for the worst-case scenario.”

Great. Let’s play that out.

Say a 500-basis-point rate shock, a recession, a Martian invasion, and a Nickelback reunion tour all hit at once. Terrifying? Yes. But unless your balance sheet is made entirely of subprime balloon loans and vibes, the odds of such a cataclysm wiping out your 10% capital buffer and then some are vanishingly low.

And even if it did, your regulator is unlikely to high-five you for sitting on a 15% buffer when 12% would have sufficed and the other 3% could have been used to actually serve members. You don’t get a trophy for hoarding potential.


“But the Regulators Like It!”

Sure. And your dentist likes it when you floss twice a day. Doesn’t mean it’s a viable identity.

Yes, regulators appreciate strong capital. But they also value operational effectiveness, loan growth, membership value, and risk-informed decision-making. They don’t want to see you building capital castles while the market passes you by.

Running a credit union solely to appease your examiner is like designing a car for your mechanic. Sure, they’ll love the engine access, but no one’s going to buy the thing.


Strategic Growth: Now Hiring Capital

Let’s talk opportunity cost.

Every dollar that sits in capital at a 14% ratio (when 10% would suffice) is a dollar not deployed into strategic initiatives. That’s a new loan program not launched, a branch not modernized, a digital upgrade not implemented, or a member segment not served.

You are, quite literally, overcapitalized and underutilized. That’s not caution—it’s stagnation dressed up as virtue.

And CEOs? If your board is holding you hostage with ultra-conservative capital policies, congratulations: you’ve been promoted to Chief Preservation Officer. Your job is to sit on a pile of money and politely decline to use it.

Spoiler alert: That’s not strategy. That’s surrender.


The PR Problem You Didn’t Know You Had

There’s also a branding problem with excessive capital. If word gets out (and it does—NCUA Call Reports are public, remember?), members, vendors, and yes, even regulators may start wondering:

Why is this credit union sitting on 15% capital when their peers are doing just fine with 10%?

Is it inefficiency? Fear? A pathological aversion to lending?

Whatever the case, the story isn’t flattering.


So, What Should a Board Do?

Ah, finally, solutions. You were getting anxious, weren’t you?

  1. Set a Capital Target, Not a Capital Shrine.

    Create a realistic, risk-informed capital target based on actual scenario modeling. Not vibes. Not trauma from the Great Recession.

  2. Regularly Reassess the Capital Buffer.

    If you’ve had 300+ basis points of excess capital for five years running, that’s not a buffer—that’s a moat. And you’re the dragon asleep in the middle.

  3. Tie Capital Deployment to Strategy.

    Capital should be the fuel for your mission, not a museum piece. Use it. Lend it. Invest it. Innovate with it.

  4. Educate the Board—Yes, Again.

    A board stuck in the “more is better” loop may need a refresher on how capital, risk, and growth actually interact. Spoiler alert: hoarding isn’t growth.


Closing Thoughts from Your Favorite Snarky Consultant

Let’s be clear: no one’s asking you to gamble with your capital. But don’t confuse risk management with strategic paralysis. The real danger isn’t the next economic downturn—it’s the slow erosion of relevance while your capital ratio quietly creeps toward 16% and your members quietly wonder why nothing ever changes.

So be brave. Be strategic. Be willing to sweat a little. And for the love of all that is cooperative and not-for-profit, stop worshipping at the altar of excessive capital.

Because in the end, the goal isn’t to die the richest credit union in the graveyard.

It’s to live boldly enough that your members actually notice.

The Sky Is Falling, Again: A Credit Union Leader’s Guide to Surviving Change Fatigue Without Losing Your Mind (or Your Staff)

April 2025. Inflation is behaving like a caffeinated squirrel, interest rates are doing their best impersonation of a rollercoaster, AI is coming for everyone’s job but only the boring parts, and Gen Z just declared email “a form of psychological warfare.” It’s official: we’re in another thrilling chapter of “Changeapalooza: Financial Edition.”

For credit union boards and leadership teams, the phrase of the day isn’t “digital transformation” or “member engagement.” It’s change fatigue—that delightful cocktail of burnout, whiplash, and “if one more thing changes, I’m going to scream into a pillow” energy that’s spreading faster than a TikTok dance trend.

Let’s talk about what change fatigue means in this moment, why it’s a problem for your credit union, and what you can actually do to keep your staff, your members, and yes, your own sanity, intact.

So, What Exactly Is Change Fatigue?

Change fatigue is what happens when your employees (and members) experience too much change, too fast, too often, with too little stability or explanation. Think of it as the organizational equivalent of opening your closet and finding only “It’s Casual Friday” T-shirts while you’re late for a black-tie gala. It’s disorienting. It’s frustrating. It’s exhausting.

People need time to process change. And they especially need that time when it feels like the only constant is a new “urgent” initiative involving a shiny app no one asked for.

In 2025, your employees have:

  • Lived through at least four major banking system disruptions,
  • Implemented X number of system updates (and resented all of them!),
  • Adapted to hybrid work, fully remote work, and “let’s all return to the office because vibes,”
  • And oh yes, been asked to adopt five different digital tools that all do basically the same thing.

Add in economic uncertainty, AI disruption anxiety, and the fact that most people are now fluent in Zoom, Slack, and emotional detachment—and you’ve got a tired workforce that isn’t just burned out. They’re bored of being burned out.

Why Credit Union Leadership Should Actually Care

Sure, fatigue sounds like something a good cup of coffee can fix. (Spoiler: it can’t.) Here’s why ignoring change fatigue is a bad idea:

  1. Productivity Tanks

People can’t innovate or engage if they’re emotionally checked out. Change fatigue means they’ll show up, nod at your strategy meetings, and then quietly Google “How to fake enthusiasm in a town hall.”

  1. Turnover Increases

Top performers are the first to leave when the organization turns into a stress factory. And in today’s labor market, replacing good people is about as fun as auditing a spreadsheet in Comic Sans.

  1. Member Experience Suffers

When your staff is exhausted, your members feel it. Service gets slower. Smiles get thinner. That extra mile? It turns into “Let me transfer you to someone who still has hope.”

How Did We Get Here?

Short answer: because everything keeps changing and no one can shut up about it.

Longer answer: the past few years have been a nonstop parade of transformation. In 2020, it was “pivot to digital.” In 2021, “pivot to remote.” In 2022, “pivot back to the office.” In 2023, it was “pivot to hybrid” and “adopt AI tools or become irrelevant.” By 2024, it became “pivot to whatever the consultants are saying this quarter.”

By 2025? We’re all dizzy. There’s been so much pivoting we’ve basically become ballerinas—with none of the grace and all of the blisters.

What Credit Union Boards and Leaders Can Do About It

Change isn’t going away. But the way you lead through it? That’s where the magic (and sanity) happens.

Here’s how to start protecting your staff, supporting your members, and maybe even sleeping at night again:

  1. Stop Treating Every New Thing Like a Burning Building

Not every initiative needs a war room, a launch party, and twelve cross-functional meetings. Triage your changes. What’s actually urgent? What can wait until Q3 (or, ideally, never)?

Better yet: try saying “no.” It’s free, it’s empowering, and it might just be the most revolutionary act in your leadership toolkit.

  1. Communicate Like Humans, Not Buzzword Robots

“Synergizing our agile operational framework to empower scalable transformation” is not a sentence—it’s a cry for help. People are tired. Speak plainly. Explain the why behind changes. Make space for questions. Admit when you don’t know things. It won’t kill you, I promise.

  1. Audit the Volume of Change, Not Just the Results

Track how much is being asked of your teams—not just in outcomes, but in changes themselves. Is your call center onboarding a new CRM, switching to a new schedule, and learning new compliance rules all in one month?

Congratulations, you’ve just created a burnout smoothie.

Stagger major changes. Give people breathing room. Think of it as interval training for the soul.

  1. Invest in Emotional PPE

Your staff isn’t made of spreadsheets. They’re human. Invest in mental health support, burnout prevention, and manager training. Normalize checking in with each other as people, not just performers.

Offer resources. Encourage use of PTO without guilt. Celebrate “boring” stability once in a while. (“This quarter, we didn’t launch anything! And it was glorious.”)

  1. Create Feedback Loops That Don’t Suck

Your staff knows what’s working. And what’s slowly crushing their will to live.

Ask. Listen. Actually implement some of what they suggest. Reward candor. And resist the urge to form a task force every time someone has an idea. Sometimes all you need is a sticky note and a plan.

  1. Support Members Through Their Own Change Fatigue

Your members are exhausted too. Rising costs, confusing financial products, scary economic headlines—it’s a lot.

Focus on financial wellness, clear communication, and digital experiences that don’t feel like solving a Rubik’s cube. Use empathy as a competitive advantage. (It’s cheaper than a Super Bowl ad and way more effective.)

TL;DR: Be the Calm in the Chaos

In this economy—and this era—your job isn’t just to lead through change. It’s to curate it, manage its pace, and protect your people from being steamrolled by it.

Remember: stability is a strategy. Sanity is a value. And sometimes, the bravest thing a leader can do is say, “Let’s not add one more thing.”

The best credit unions in 2025 aren’t the ones that change the fastest—they’re the ones that change with purpose, communicate with clarity, and lead with humanity.

So take a breath. Cancel that seventh strategy meeting. And maybe—just maybe—leave things the same for a hot minute.

Your people will thank you. Eventually. After their second cup of coffee.

 

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

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.

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