Formalize Board Renewal Process for Best Results

By Jessica Jones and Laura Lynch

Every credit union board should make renewal a strategy for success. But many boards struggle with renewal processes such as recruitment and election, which play crucial roles in refreshing the board. The solution? Formalize these processes to efficiently and effectively accomplish them every year.

The Board Renewal Report, a recent report commissioned by CUES^® and the Clarkson Centre for Board Effectiveness, shows “a majority of credit union directors (87%) surveyed in 2010 believe their boards should implement elections. However, most (70%) do not have a director election process in place.”

The report also notes credit union boards are faced with a unique challenge in board member recruitment. Like boards in other industries, the goal is to find candidates who are interested, committed and qualified. Unlike other industries, these candidates must also be willing to volunteer their time, and are from your pool of credit union members. These requirements shrink the number of suitable candidates further.

“Without formal processes to ensure ongoing monitoring of board renewal, these boards are more likely to continue struggling with [recruitment challenges and finding candidates]. A formal board renewal process can assist in optimizing demographic composition, skills and recruitment process,” the report suggests.

continue reading »