A Direct Line Blog

By Donya Parrish, MCU VP Risk Management

As credit union volunteers, you dedicate a lot of time and effort to support your credit union. That time should be as worthwhile as possible. Do you ever look back at a board meeting and feel it could have been more productive? Is there ever a decision reached or project completed and you wonder why it took so long to get to that point? There are a few barriers in the board room that you may not even realize are creating the slow walk to reaching goals.

Lack of information

Each month, you receive your board packet, you show up to the meeting, sit in the same seat, and listen as someone goes over various reports. Do you feel you are getting the information you need to make valid decisions? Are there other reports or details that you feel would be helpful? Many credit unions are in a rut of preparing a board packet just like the one they had years ago and it may not be what you need today. One suggestion is to take some time annually to review your packet and discuss what is missing, redundant, or not needed at all. Change can be a positive if you approach it proactively.

Everyone Agrees

If the entire board agrees every time you take a vote or make a decision, you might have a problem. Many of your motions and decisions are not controversial and have been decided long before a vote is taken. The Callaway Golf and Good Good driver advertisement fallout a few weeks ago is a good example of how problematic it can be if you don’t have anyone willing to say, “We should take a step back and look at this again,” or “Maybe our group is not diverse enough to really judge this adequately, how can we get some additional input?” Instead, both companies are now facing financial and reputational fallout from a 30-second ad.

The example is one to consider when your board is debating a major decision — a field of membership expansion, a merger opportunity, a CEO hire, or anything with broad and long-term impact. It is natural to feel like you need to go along with the direction others are leaning and it is also acceptable to say, “Wait, I have a few concerns. Can we address those first?” As long as you are not hijacking every decision at all or multiple meetings, the pause might end up leading to the most productive part of the discussion — and a better outcome and decision.

Analysis Paralysis

Do you limit on the number of meetings you in which you will discuss a single issue without making a decision? Some experts say three is a good rule of thumb. Your board may not feel ready to vote or move forward with something that has long-term consequences, but if you continually discuss and don’t take a stance, you are probably wasting everyone’s time. This is not to suggest your board should ever make hasty decisions or take votes when there is too much unknown. It is more of a nudge to be productive and only put things on the agenda that you are ready to discuss and decide.

Taking a small step back to review your board’s effectiveness and process may lead to a few tweaks that can benefit your future meetings, and your future credit union. This Harvard Law School article Why good boards make bad decisions also offers some behavioral factors that can impact your effectiveness. Give it a read and let me know what other thoughts you have.