The term board governance means that a board of directors has published guidlines so individuals can understand and accomplish their roles effectively. In addition, board governance is associated with the board, not as management, but as leadership. A governing board delegates their traditional management roles to professional managers. A governing board focuses on providing a vision to inspire and guide management’s operational decision making.

Board Governance Policies Provide Important Guidelines

Board Governance consists of written policies disclosing the balance of power and the relationship of a board with its executive. Good board governance results in an effective and knowledgeable board, a fully utilized executive, and success for the organization. Board governance policies are guidelines for a long journey. Having guidelines to clarify and separate duties and help people make decisions and fosters teamwork ─ boards and their executives are a special form of partnership. Credit unions and other organizations need flexibility to be effective today, and poor policies can mean trouble. You need board governance and governance policies that make sense for your organization.

How I Came to be so Closely Associated with Governance

During the years I worked as an examiner and regulator, I noted that a frequent topic on conference agendas was Board Duties and Responsibilities. In the 1980s that shifted to the concept of governance.

 In the early eighties, I developed a set of governance policies for the Federal credit union where I served as a director and Chair of the Board. I also created a manual of policies with a state chartered client.

Talking about those efforts in presentations I found participants hungry for a guide, a model as a starting point. My response was to write a model manual. Over the years that model has helped credit unions of all sizes across the country.

A Board’s Governance Policies need to be separate from Management’s Operating Policies. Credit unions have used the Board Governance Policy Manual to develop governance policies where none existed. Use it as a foundation for a complete revision, or as a reference guide.

Ways to serve you

In addition to policies, there are other ways for me to assist you. One has to do with the board’s “knowledge management.” In an effort to satisfy a board’s accountabilities to society and its regulators, boards received increased volumes of data. Often that does not lead to more knowledge but less knowledge, and increased concern for the oversight role.

A board should direct management to provide the information the board needs. The primary requirement is related to fiduciary duties. The board needs information to monitor the condition and performance of the organization. Invite me to work with management and the board to design the right information flows.

Additionally, most board insist on receiving materials for forthcoming board meetings in advance of the meeting. All too often there are things transmitted with the agenda that the meeting does not intend to deal with. That extra stuff leads to time-wasting discussions and meetings that run too long. Invite me to work with management and the board to design an agenda packet that’s right for you: strategic discussion issues, consent agenda, proposals, and more.