Executive Summary
This brief is a call to action for credit union boards to not only govern their credit unions but also themselves as a board. Dr. Amy Hillman shares her insights from interviews with a dozen credit union board chairs and an interim credit union CEO and consultant who has experience of turning around 50+ credit unions, about what is needed from their perspective to make credit union boards more effective through self-governance. These insights are paired with research and best practices from within and outside the industry to share where and how boards can play a more strategic role for their credit unions.
Key takeaways from this brief include:
- Major challenges that credit union boards face
- The potential cost of inaction
- The biggest concerns coming out of our research as it relates to a lack of board self-governance
- 5 key recommendations for boards to better govern themselves
Credit Union Implications
We know from research on non-profit and for-profits governance that organizations with effective boards outperform those with less effective boards. The right directors, given the strategy of the organization and the environment in which they operate, improve firm financial performance.
Credit unions today face many challenges. Whether looking externally to regulatory and market pressures, or internally to the ever-increasing cost of doing business and competition for talent, credit unions need all the support they can get. Credit Unions need a board that is prepared to guide them through the changes.
Filene’s Center for Leadership, Strategy & Governance is generously sponsored by:
