Your CEOs want to hear your questions.
They want you to challenge them. And they want you to reward them.
Yvonne Evers, president of YME Coaching & Consulting, framed that scenario for attendees at CUNA’s National Credit Union Roundtable for Board Leadership. After the financial crisis, Evers says she received a lot of calls reflecting shaken confidence among CEOs and their boards.
“But it’s partly your responsibility to ensure that you’re communicating with your CEO,” she says.
Unfortunately, a lot of communication is faulty. Evers describes a continuum of board oversight, ranging from rubber-stamping to micromanaging. Rubber-stamping is to approve without question whatever your CEO or board committees recommend.
“This generally happens at credit unions with long-term CEOs,” she points out. “You’ll have short, fast board meetings as well. Do CEOs like this? A good CEO won’t. This oversight style means the board has no responsibility.”
Avoid rubber-stamping by:
Micromanaging, according to Evers, is to manage with excessive control, especially controlling operational details. Behaviors to avoid include:
“It can happen as you set more expectations for your CEO,” she says.
You’ll avoid micromanagement if you:
A culture of trust and respect, along with clear and consistent communication, can take you a long way to being successful as a board, Evers maintains.
And a lack of trust and respect can derail everything you’re trying to accomplish together. To ensure your board attains proper CEO oversight, Evers suggests these tips:
This article first appeared in Credit Union Directors Newsletter.
Over the past weekend, the chairman of CUNA’s System Structure and Governance Task Force, Tom Dorety of Suncoast CU, Tampa, Fla., discussed with the CUNA board some initial models the Task Force is considering. The group has been meeting since last fall and commissioned several focus groups and a nationwide survey of credit unions to gather credit union feedback to inform its deliberations.
WASHINGTON (5/4/15, UPDATED 1:45 p.m. ET)--Building on the success credit union advocates are having in getting data breach legislation introduced in the U.S. Congress, today CUNA launches a new call to action to garner support for the recently introduced House Data Security Act of 2015 (H.R. 2205).