When I talk about a mindset makeover for the board of directors it is somewhat different than the mindset makeover I talked about in the previous leadership article. It is true that board members can still have some of the same issues such as: low energy as shown by a lack of interest in attending or participating in board meetings, no excitement about the success of the credit union or where it is heading, or the feeling of dread of seeing an individual or group of individuals. But what I really want to focus on here are a couple of issues that have been discussed with me recently.
First of all, does every board member always keep the best interest of your members top of mind?
When an individual becomes a part of a Board of Directors, he or she must now think in terms of a group. Board members who bring personal agendas to the board room can wreak havoc in their relationship with other Board members and management. What these Board members try to do is persuade the others to go in a direction that will lead them to achieve their personal agenda or personal ambitions. The problem with this is that when Board members are focused solely on how the decision of the Board will affect them personally, they are not considering the very people who elected them; the membership.
Secondly, are there some members of your board who discount the success of the CEO and the credit union by either not rewarding the CEO with the pay increase or bonus he/she truly deserves or by complaining about issues which takes away from the success because there may be some jealousy or resentment issues?
The best way to decrease your CEO’s morale is to fail to acknowledge great work and accomplishments. I have seen it happen in credit unions that have had terrifically successful years, but yet some of the board members felt an impulse to find something wrong instead of celebrating the success.
If either or both of these situations are happening at your credit union, your board may need a mindset makeover.
- Ensure that all board members are reminded on a regular basis of the importance of keeping the best interests of the credit union’s members first in their mind.
- If a board member becomes side-tracked with a personal agenda item, have your board chair “reel that person back in” to help him/her bring their focus back on the real issues.
- When discussing the performance of the CEO, ensure that board members are focusing on the CEO’s achievements and success, and paying the CEO fairly compared to the market.
