“If one of the most important roles of credit union boards is to select, compensate, and evaluate well-qualified CEOs, why do so many boards not have CEO succession plans?” Bob Hoel, Filene Research Institute senior fellow, asked ACUC breakout session attendees Tuesday afternoon.
“Continuity of leadership is extremely important for your credit union, and everyone should have a CEO succession plan,” he says.
In additional to succession planning, credit union boards need to:
“Look around your boardroom,” Hoel advises, “If everyone looks just like you, you probably need a greater diversity of skills and expertise.”
“Have you been to a Wal-Mart Money Center?” asks Hoel. “That’s where the action is, and that’s where your future members are.”
Hoel encouraged attendees to do everything they can to increase the number of members who attend the credit union annual meeting. “Usually these things are pretty dull and uninteresting, but they don’t have to be. Make them fun, give things away, and make them promotional extravaganzas for your credit union.”
Hoel cites Tarrant County Credit Union in Fort Worth, Texas, which attracts 500 to 700 members to its annual meetings, even though it’s relatively small with $60 million in assets.
Hoel said organizations actually discourage stakeholder/member involvement when they:
He encouraged attendees to make their credit unions more transparent to build stronger member trust.
Northwestern Mutual, for example, invites five or six policy owners into its home office every year and gives them full access to the company and its records. The policy owners then write reports about their experiences and their unedited reports are published in the company’s annual report.