LSCU Director's Resource Newsletter, 4Q 2012
Fourth-quarter edition of the Director's Resource Newsletter.
Director’s Resource League of Southeastern Credit Unions | December 2012 | Vol. 2, Issue No. 4 President’s Message Happy holidays from the LSCU & Affiliates. We appreciate your support in 2012 and look forward to working closer with you in 2013. This past year was a very good year for the LSCU and LEVERAGE, the League Service Corporation. At the LSCU, it’s our belief that if we do well, we want to share our success with member credit unions. In 2013, we expect to offer our affiliated credit unions a dues rebate. This is the first dues rebate ever offered to credit unions in either state. This is made possible in part by the hard work and dedication of our volunteer board of directors at the LSCU & Affiliates. The final year-end numbers won’t be known until the books are closed on 2012. Credit unions are asked to pay their dues like normal. A paper check will be issued around the end of the first quarter. The dues rebate is a result of a more streamlined LSCU, and the financial success of LEVERAGE. By purchasing products from LEVERAGE, credit unions are helping the long-term sustainability of the League. You can see how it also has a direct correlation to your dues. We’re excited to offer this rebate. Thank you again for your affiliation this year and I hope you can see we are offering more services to our directors. You play a large role in the success of your credit union. Enjoy the Director’s Resource and I hope to see you in 2013. Good Governance: Board Position Descriptions Decisions leaders make about people are critical to organizational success because people impact everything in an organization. Leaders are people and people are the sources of information leaders rely on to make decisions. People set and carry out the organization’s strategy. People react during a crisis. The right people fix a decision that is going badly, and the wrong people can mess up even the most brilliant decision. CU industry data suggests that more could be done for board renewal efforts. According to a Credit Union National Association study released this January, the typical credit union board member is a 61-year-old-white male. He has served on the board well over a decade and will more than likely serve for many more years. In addition, a 2010 Clarkson Centre for Board Effectiveness study sponsored by the Filene Research Institute and CUES found that the majority of credit union boards do not have a process in place to address their recruitment challenges. For example, 70 percent did not have director election processes in place and only 25 percent had an evergreen list of potential board candidates. And, a 2005 Filene Research Institute study (“Board Recruitment and Selection Practices at Credit Union Boards,” not available online) of credit union boards found that 38 percent of boards did not have position (continued on page 2) Save the Date Regulatory Compliance Update Jan. 16, 2013 Wednesday Mobile, AL Click here for more information 2013 Credit Union Quail Hunt Jan. 18-19, 2013 Friday-Saturday Town Creek, AL Click here for more information Small Asset Size CU Conference Feb. 5, 2013 Tuesday Orlando, FL Click here for more information (continued from page 1) descriptions and many more reported their position descriptions as being weak. Forty-three percent had not developed skill or competency profiles or had not used what profiles they had to both recruit and vet candidates. Forty-two percent said they did not have a list of potential candidates or a method to recruit candidates. Board succession revolves around a few key elements. One is to decide the capabilities, knowledge and skills--often referred to as competencies-required to fulfill the organization’s mission. Another element groups the competencies to create roles or titles so tasks can be accomplished efficiently and managed prudently. These roles are compiled into position descriptions. Robust position descriptions serve as one of the most important resources for succession. Position descriptions set the tone, establish expectations, and provide guidance for further development. How does a person know what is expected in their current role or what competencies should be developed if they wish to excel in their role unless there are agreed upon and documented expectations? The position description should include more than duties. Well-crafted position descriptions include such things as the organization’s mission, values, leadership competencies, duties, and the product to be produced. Board position descriptions should support the recruiting process. They will establish expectations of performance. They can be used to set the board development agenda for the year. And, they can be used to create individual development plans. While there is no HR department serving the board, the nominating or the development committee or the governance committee can play a role in succession. The committee charter may include responsibility for ensuring board position descriptions are current, collecting and assembling names of potential candidates, and developing skills at recruiting and vetting individuals. It may propose governing policy on orienting new candidates or providing an associate role on the board--people who gain experience by attending board meetings, but do not vote. In addition to the recruiting, vetting, nominating, and orienting of a board succession plan, it also includes the discipline required to establish written expectations memorialized on a position description. It includes regularly scheduled discussion about succession, board needs, and even a crisis plan for unexpected departures. Succession also includes development of each board member with the goal of exceptional excellence in governance. However, by having a robust position description, current and potential board members have the guidance and awareness to help them carry out the credit union’s strategy successfully. 2012 Leadership Development Conference Sees Record Turnout More than 300 credit union officials attended the LSCU Leadership Development Conference (LDC) in Point Clear, AL Nov. 6-9. Many of the attendees were directors. It was a record turnout for the conference. The LDC was rebranded to place a greater emphasis on “leadership.” The keynote speakers walked attendees through running the credit union with performance based leadership and looking at demographics in shaping the future of the credit union. The breakout education sessions and asset sized roundtables promoted interaction between credit unions. The interest rate risk session was heavily attended. “For our credit union, the interest rate risk session was worth the entire price of the conference. We really got many things that we can take back to the credit union,” said APCO Employees Credit Union Director Wendell Pate. Pate also said that the networking time between directors at a conference like the LDC was priceless. Rep. Jo Bonner (R-AL) was the guest speaker at the Governmental Affairs luncheon. He challenged credit unions to work with Congress on issues. He also stayed around after the luncheon to speak with attendees. The 2013 LDC is Nov. 6-8 in Point Clear, AL. Make plans to attend next year. You can see pictures from the conference on the LSCU Facebook page. Lewis Frederick, TVA Credit Union board member talks with LSCU President/CEO Patrick La Pine. This article was edited from an original article that ran on www.cues.org titled: “Good Governance: Board Succession,” November 2012 – Vol: 35 No. 11. First Annual CU Quail Hunt Jan. 18-19, 2013 Doublehead Resort in Town Creek, AL Registration ends on Friday, Jan. 4. Click here for more information Rep. Jo Bonner (R-AL) meets with a credit union director. Cooperative Image Campaign Doubles Awareness The goal of the LSCU Cooperative Image Campaign is to raise awareness of credit unions and get more consumers to join. Before the first wave of Image Campaign ads hit the air in September, 2011, precampaign research found that 27 percent of consumers were aware of credit unions. After the second wave of ads, awareness has risen to 50 percent. That is a 27-percent jump in just one year. This is phenomenal. The Call Report data for the five quarters since the ads began show that more than 250,000 consumers have joined an Alabama or Florida credit union. Also more than $3.6 billion in assets have been added to Alabama and Florida credit unions. The Cooperative Image Campaign played a part in this success, along with bank fees, Bank Transfer Day, and credit unions’ own marketing plans. The Cooperative Image Campaign is showing real results and works well with individual credit union marketing efforts. The 2013 campaign will use the same creative from the second wave this past summer. A greater emphasis will be placed on media buys online through behavioral targeting. This will allow the campaign to run longer in markets across both states. The League hopes every credit union will support the campaign. CUs Make Case During National ‘Hike the Hill,’ TAG Legislation Defeated Fourteen credit union officials from Alabama and Florida and five Alabama small business owners joined LSCU President/CEO Patrick La Pine and Governmental Affairs staff for a National Hike the Hill Nov. 27-28. The trip was added to help push the Member Business Lending (MBL) legislation during the Lame Duck session of Congress. During the trip, the attendees met with 14 lawmaker offices, including all 4 Senators’ offices from both states. While the legislation ultimately did not reach the floor for a vote, significant progress was made on the issue. The trip and subsequent Action Alerts helped to defeat banker-backed legislation to extend the Transactional Account Guarantee (TAG) program. This was a major victory for credit unions and sent a message to the bank lobby. Volunteers are urged to consider attending grassroots opportunities like the State GACs and the CUNA GAC. Learn more on the LSCU Cooperative Image Campaign webpage. Contact LSCU VP, Marketing and Communications Mike Bridges at 866.231.0545 ext. 1022 with any questions. Raising Awareness Benchmark Aug. 2011 Wave 1 Sept. 2011 Wave 2 June, July, Aug. 20122 Save the Date for 2013 GACs CUNA GAC Feb. 24-28, 2013 - Washington, D.C. Alabama State GAC April 9-10, 2013 - Montgomery, AL Florida State GAC March 19-20, 2013 - Tallahassee, FL Alabama credit unions and business owners meet with Rep. Spencer Bachus (R-AL) during Hike the Hill lawmaker visits. Take a VAP Course in 2013 The Volunteer Assistance Program (VAP) helps credit union volunteers learn to work effectively, make informed decisions, and improve credit union performance. Take a VAP course in 2013 at the AC&E in June, the Supervisory Conference in August or the Leadership Development Conference in November. These courses help volunteers strengthen their knowledge on a wide range of topics from financial management to compliance to strategic leadership. Click here for more information To receive the latest news from the LSCU, CUNA, and the NCUA, sign up for the League’s weekly newsletter, eSignal, at www.lscu.coop. To subscribe to the Director’s Resource Newsletter email: email@example.com.