Mina Worthington, president/CEO at Solarity Credit Union.
Gap analysis
SchoolsFirst Federal Credit Union in Santa Ana, Calif., offers a multifaceted development program for directors. Shelly Berryman, vice president of board and committee relations at the $26 billion asset credit union, says the program includes:
A robust orientation process that matches new volunteers with an experienced mentor who can help them acclimate to the history, culture, and events that have shaped the credit union. The program is entwined with SchoolsFirst Federal’s Advisory Councils and President’s Forum, where new volunteers often begin their service.
An associate director role that allows appointed members to gain exposure to meetings and discussions while learning about the time commitment and responsibilities for board members.
A quarterly training program that addresses SchoolsFirst Federal’s internal and external training requirements. Berryman notes credit unions with assets of $10 billion or more face added development requirements from the NCUA Office of National Examinations and Supervision and the Consumer Financial Protection Bureau.
A requirement that every director attend at least one conference related to the credit union movement or complete online courses from an accredited resource.
An annual Saturday session offered to all volunteers to address current and future projects, examine topics such as DEI, and foster small group interaction. The board also holds an annual strategic planning session.
Board Chair Greg Marchant is an educator, which strengthens his belief in the importance of tailoring training to meet the needs of specific directors. Marchant began serving on SchoolsFirst Federal’s President’s Forum in 1998 and joined other committees before becoming a director in 2005.
The credit union uses gap analysis to identify individual training needs and offer development options to fill knowledge gaps.
“All of us learn at different paces and from different styles,” Marchant says. “Having the flexibility to choose courses from accredited partners or selecting breakout sessions that fill my individual knowledge gaps is extremely helpful.”
He also appreciates interacting with SchoolsFirst Federal’s team.
“Connecting with those who serve on the front line and hearing the heartfelt stories of how we help our members always ignites my passion and reminds me that the work we do day in and day out is so important,” Marchant says.
Berryman subscribes to various publications that she scans daily for articles, materials, and training resources, which are shared with directors via an online learning management system that serves as the board’s development portal.
Some topics require an added level of time and attention, she says. For example, directors can earn a cybersecurity certification through an online program.
When the pandemic hit, the board added a monthly update to each meeting to hear from every senior leader about COVID-19’s impact.
5-STEP FRAMEWORK GUIDES BOARD DEVELOPMENT PLANNING
Kevin Smith, consultant/publisher at TEAM Resources, offers this approach for creating board development plans:
Start with Regulation 701.4. NCUA regulations give new board members six months to understand the balance sheet and be able to ask substantive questions. Make sure your directors are ready on time.
Counter outdated assumptions. Long-term board members sometimes assume 20-year-old “rules of thumb” are still valid. Offer training that identifies outmoded ideas.
Adjust for three levels of experience. Rookies, long-term directors, and board members with “middle ground” experience need different levels of development.
Calibrate understanding in core areas. All directors need a shared understanding of their credit union’s approach to governance, strategic planning, and risk tolerance. Discussing these issues together will put directors on the same page.
Stay nimble. The pandemic showed directors they could quickly adopt new approaches to training and governance. Development plans can challenge directors to combine old and new approaches to capture the best of both.
The Winter 2023 issue of Credit Union Magazine explores award-winning marketing, board training on a budget, developments in instant payments, service to small businesses, and NCUA’s final rule on member expulsion.
