More often than not, board members can find themselves in meetings that are filled with the least interesting and least challenging issues. Many board members and chief executives struggle to make board meetings valuable to the organization and the individuals in attendance. A consent agenda can turn a board meeting into a meeting of the minds around the things that matter most.
What is a Consent Agenda?
The consent agenda is a written set of items requiring formal board action and decision, but not discussion or debate at the time of the meeting. Materials are provided to the board well before the meeting, members are expected to review the items well enough to vote or make a decision without discussion. Thus, more time is prioritized for the issues at hand during the meeting.
Items may be contained for passage on the consent agenda only if all board members agree; if even one member considers a specific item to need discussion, it must be removed and placed on the regular agenda for the discussion at the board meeting. The ability to remove items and have them debated is a crucial aspect of use of the consent agenda. It is important to recognize this and establish as part of your board culture that directors will read the material and will take matters off the consent agenda that need further clarification or debate.
Things to regularly include on the consent agenda are those that usually do not inspire comment by directors or matters that are thoroughly canvassed in committee meetings. The board chair and the CEO need to be clear about the intended purpose of each item not on the consent agenda. It may be approval of a recommendation, guidance and advice, or brainstorming.
Directors will be expected to read the materials that accompany the consent agenda as well as those for the regular agenda. You should have some review mechanism in place to ensure that this happens. This definitely should be canvassed in your annual board assessment but directors should be mindful throughout the year.
Dashboards
A dashboard is information contained on a single piece of paper that summarizes important information so directors can chart performance with a glance. KPIs from the strategic plan can be on the dashboard.
The process of deciding what to include in the dashboard is one that should be made in consultation between the executives involved and the respective committee members in a process led by the committee chair. Each committee’s dashboard should be an accurate reflection of the performance of the credit union. Each committee meeting should ensure that the dashboard is an accurate reflection of the matters depicted.
Supporting materials can and should be reviewed to ensure that pertinent information is shared and extraneous information is not. Each committee can undertake a review with respect to the materials it generally receives. The Governance Committee can develop principles to be followed by management in deciding what to include.
Summary
Moving to a consent agenda may cause consternation because it requires a change from standard operating procedure and sometimes seems to minimize traditional board responsibilities and rituals. However, used properly, consent agendas facilitate board focus on the things that matter most. A consent agenda is not an excuse to cover up important issues; rather, it is an invitation to explore them deeply. Board members will grow to trust the work done by committees.
Using the consent agenda leaves board meetings for direction-setting, policy oversight and “big picture thinking.” Chief executives will hear different perspectives about critical issues and in the process they can ensure the board is knowledgeable about, and supportive of, key initiatives. Board members, in turn, will feel that their time is well spent; they will feel valued and satisfied.