Recently, I had the opportunity to participate in a conference uniting credit union Board Chairs and CEOs. Having observed a host of chair/ceo relationships throughout my career especially during my time at Filene when leading strategy work and most recently from having experienced firsthand forming one with our Community Financial Credit Union Board Chair, Teri Kuehn. As keynote presentations, roundtables, dinners, and hallway conversations fade into memory, I revel in inspiration and encouragement. I also recognize several paradoxes.
I am a firm believer in the cooperative finance model. When a group of people with shared communities come together and form a system to accomplish the goals of the whole, it creates the best possible outcome for human beings. In credit unions, members elect a peer group of volunteers to represent their interests in the dedicated Board of Directors who serve in this role. These volunteers hire a competent CEO capable of not only managing the everyday operations but with the vision to manifest the members’ dreams to life using important tools like loans, deposit products, payment tools, technology solutions, and guidance and advice to support financial well-being.
The complexity of twenty-first-century banking at times distracts us. I often revisit the cooperative principles for credit unions, which are eloquently illustrated on the National Credit Union Foundation’s website. Particularly, I get energized by:
I have always believed that two seemingly opposing concepts can be true at once. We can simultaneously be not-for-profit and grow sustainably. In fact, growth matters deeply because it maximizes the potential of a financial cooperative. The more members that use a credit union more deeply, the more value the credit union provides to each member that have been there the longest. I firmly believe that the operational demands of complex banking must be every credit union’s strength. And there is so much more we can do by listening to members’ aspirations (especially the impossible ones), strengthening our cooperation, and making our impact on the sustainable development of our communities reverberate loudly. This symbiotic relationship between membership and strategy is fed daily by their liaison, the credit union’s Board of Directors.
The most recent conference reaffirmed that while many traditional Boards focus solely on oversight, the best Boards go beyond this responsibility, to challenge the organization to create even more impact and bring to life a vibrant future. Doing that requires a Board to take a more active role in engaging in future-focused dialogue, bringing richness and color to the strategy, and collaborating fully with the leadership team who carry imperative subject matter expertise. And it all starts with the Board Chair. An effective Board Chair ensures not only productive meetings and nurtures a Board/CEO dynamic but also nurtures a culture of trust and feedback, sparks constructive debate, and actively participates in the manifestation of the strategy.
For those avid readers in my circle (I see you!), that wonder how to leap forward to do even more, I suggest the following "future read" entitled “The Future of the American Board Report: A Framework for Governing into the Future.”It lays out 10 principles for Boards to consider as they tailor their governance for changing circumstances. Yes, it is for all Boards, including for-profit companies, and the principles can be translated from Corporate Purpose to Ends or Mission. Their advice resonates loudly.
I feel invigorated by the incredible people volunteering to represent the interests of our membership at Community Financial Credit Union and those volunteering at their credit unions across the globe. Cheers to all the Board Chairs taking on the heavy mantle of leadership and representing the thousands of member voices you amplify locally. You are the heart of our movement.
