It is up to the board to identify the skills, traits and characteristics that will add value to the board. The board can start by identifying the characteristics and skills of what makes a good board member. Corporate director training has developed many templates that can be used.
Because credit unions are, in effect, mission based organizations, the potential director’s alignment with the vision must be a key criteria in selecting board members. Other than that, Credit union director skills and attributes will only differ slightly from those directors on corporate boards. It may more be a matter of emphasis than credit union directors needing different skills than their corporate counterparts. The credit union board needs to be thoughtful and deliberate when cataloguing the desired skills and attributes of a board member.
When determining how the board should add value to the organization, start with a review of the credit union’s vision and strategy. Once this is considered, the specific skills the Board will need to assess the strategy and oversee its execution can be more easily determined.
The evaluation of board member requirements should happen when the your nominating process is changed over and every few years thereafter. In this way, the board can confirm whether it was correct in its observations. The board will also be responsive to changes in circumstance on the board, especially changes to board composition and the strategic plan.
Identify Upcoming Needs
The board knows what it does and where it has, had or expects difficulty with some tasks or obligations. It knows what the strategic plan contemplates in the future and how that is different from the current business model being pursued. That knowledge allows the choosing of those skills attributes and characteristics that the board needs for the immediate future. The desirable skills, characteristics and attributes can be further discerned by examining the recent work of the board. Look at:
• Strategic Plan
• Minutes of Committee meetings
• What kinds of experts have you hired to provide the board with advice?
• Results of board and board member evaluations to see where gaps have been identified
Depending on the board’s relationship with them, it may want to engage the CEO and senior management in helping with the descriptions of the characteristics needed on the board. Often the CEO has great insight about what is needed on the board. Be mindful that 32% of large Co-op boards said that management had the most influence in selecting new directors. I do not recommend asking the CEO to identify individuals, merely the characteristics and attributes needed for the board.