Skip to main content

The Role of the Board Chair


Tim Harrington, CPA  
CEO, TEAM Resources



 The Role of the Board Chair
Recently I had the chance to spend some time with a great group of board members . One of the things we talked about was the role of the board chair. I thought this well worth putting down on *paper* as it were.
The role of the chairperson is multi-faceted, complex, and often changing within the context of the organization’s dynamic. Unfortunately, there’s no perfect set of “rules.” But there are some guidelines. Here are our “tips” on navigating the position successfully:
Roles
Facilitator – The board chair must draw together the individual directors into a team, working together on behalf of the membership and the credit union. To do that, s/he must wrangle individual personalities, draw out conversation from some, and rein it in from others. Having a solid understanding of the personalities of each director … and the CEO helps the chair keep things on track, moving forward, and civil.Roles:
Leader – Wait! Isn’t being a leader at odds with being a facilitator? Isn’t this a contradiction? No. There are times when the job is pure facilitation and times when it is leadership and setting direction. A skilled leader will know which is which and be able to handle both without perceptions of contradiction.
Arrives with and without Agendas – What?!
  • Agendas are crucial … if we’re talking about a list of items for keeping the meeting on track: consent agenda, new business, tracking strategy, etc. The chair should put significant thought into the development of these (not simply copy and paste from last month/year). This simple document can decide the direction and productivity of the meeting significantly.
  • Agendas are killers … if we’re talking about an ulterior motive, or a plan to take over, or change the direction of the organization in a contentious way. The chair should have no agendas such as this. His/her job to rally individual directors to create a shared mission for the credit union.
Transparent – the chair has a responsibility to be clear in purpose and approach. See above about the harm of the wrong kind of agendas. Remaining transparent, being clear in communication, and making sure that everyone understands your beliefs, your approach, and your methodology will bolster everyone’s trust in you.
Liaison with the CEO – The board chair is the point of contact for the board to the CEO. Unfettered access to the CEO by individual directors is a recipe for chaos. The chair can be both the unified voice of the board to the CEO, AND the gatekeeper of the CEO, making sure that individuals are not approaching with un-vetted side conversation and efforts to unduly influence.
Meeting Manager – This role is more pragmatic than that of a facilitator. This keeps proceedings efficient, on track and productive. You, as chair, must be willing to cut off conversation appropriately, or promote it accordingly in the interest of time and efficiency.
Accountable – The buck stops here. The chair is responsible for the actions and outcomes of the board as a whole.
Visionary – A leader must be capable and willing to see a future with ambitious goals and help forge a path toward accomplishment.
Strategic Motivator – keeps urging progress towards strategic goals. Reinforces the importance of the mission and vision of the credit union, on behalf of the members.
A Spokesperson for Media – Sounds like a job for the CEO, right? Maybe sometimes that’s true, but not always. The chair should always be ready to step in to speak on behalf of the credit union. (This is part of that “buck-stops-here” thing.) What if the CEO departs unexpectedly, or there is a crisis? It’s up to the chair to represent. And being a capable spokesperson is a great opportunity to reinforce the not-for-profit, cooperative structure of the institution, with a volunteer board setting the strategy and direction.
This might not be everything. We don’t claim to have every scenario nailed down. But it seems a good start.
What are your thoughts? What would you add to this list?

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Digital Payments Lead the Way Globally: Key Insights from Worldpay Study

According to a recent Worldpay study, digital payments are rapidly becoming the preferred choice worldwide. The research highlights significant shifts in consumer behavior and payment preferences, driven by technological advancements and the growing acceptance of cashless transactions. Key findings from the study reveal that digital payments now account for a substantial portion of global transactions. Mobile wallets, contactless payments, and online banking are gaining traction, reflecting consumers' desire for convenience and speed. This trend is especially prominent in regions like Asia Pacific, where mobile payment adoption is leading the charge. The study also emphasizes the importance of security in fostering consumer trust in digital payments. As fraud concerns continue to rise, businesses must prioritize robust security measures to protect customer information and enhance the payment experience. Moreover, the transition to digital payments is not just about c...
Post a Comment
Read Complete Article HERE>»

Embracing ARMs And Battling Members’ Misconceptions

With adjustable-rate mortgages back in fashion, credit unions are educating members about the ins and outs of these products, dispelling misunderstandings along the way. With housing stock low, home prices high, and interest rates showing no signs of coming down, many credit unions are turning to adjustable-rate mortgages to help would-be borrowers find a home. ARM loans gained a bad reputation after the 2008 housing crisis and the Great Recession, but credit union leaders insist that with the right education and a clear understanding of how the product works, adjustable-rate mortgages can be an ideal solution for would-be homeowners. The Big Picture53% of those who don’t own a home believe homeownership is out of reach, according to a study from Northwestern Mutual . 58% of millennials feel this way, but roughly half of baby boomers and Gen X share the sentiment. According to Federal Reserve data, the average price of a home topped $510,000 at the end of 2024. That’s 32% higher than f...
Post a Comment
Read Complete Article HERE>»

Jim Nussle To Retire From America’s Credit Unions

  WASHINGTON—America’s Credit Unions President and CEO Jim Nussle plans to retire from the trade association, ACU announced. ACU said Nussle did not specify an exact date for his retirement but rather expressed his desire to provide the ACU board the “full flexibility” to conduct a search for a CEO over the next several months on a timeline of their choosing, and to ensure his ongoing efforts to champion the organization’s advocacy agenda.   Jim Nussle “Serving credit unions is a deep personal privilege. After a long career in advocacy from both sides of the policy making table, leading CUNA and the honor of helping to create and lead America’s Credit Unions, it is soon time for me to pursue new interests in retirement. My announcement today is intended to provide the board the time to conduct a thorough national search to find the next leader for the Association,” Nussle said.  “My full and ongoing focus will be on our intensive credit union advocacy efforts to prot...
Post a Comment
Read Complete Article HERE>»

Havoc.’ ‘Debacle.’ Analysts See Rough Road Ahead for Autos With Tariffs

WASHINGTON–What’s known: should President Trump’s tariffs remain in place, new and used vehicle prices are going to get even higher. The unknown: Will members stop buying cars, move from new to used, or given how many buy cars according to payment, move to less-expensive models? The tariffs also may create challenges for credit unions that serve some autoworkers. All of those questions and more remain much in flux with analysts predicting  auto prices could rise by $5,000 to $10,000 per vehicle and wreak havoc on the market as the result of 25% import tariffs on vehicles and auto parts.   As the CU Daily reports separately, however, Black Book believes automakers will spread out the incremental cost of tariffed vehicles across their entire showroom to retain relative vehicle transaction prices. Still, the company expects tariffs to push the average transaction price on vehicles to more than $50,000. ‘A Debacle’ “The tariffs are a debacle of epic proportions for the a...
Post a Comment
Read Complete Article HERE>»

Zelle Discontinues Standalone App, Shifts Users to Bank and Credit Union Platforms

SCOTTSDALE, Ariz.—The standalone Zelle app is no longer available for sending or receiving money. Users are now encouraged to enroll through a participating bank or credit union’s app to continue using the peer-to-peer payment service, PYMNTS reported. Zelle had announced in an Oct. 31  blog post  that it would make this change, and it completed the move as of Tuesday (April 1), according to a frequently asked questions  page  on its website PYMNTS said/ “More than 2,200 banks and credit unions across the U.S. now offer Zelle through their mobile app or online banking site,” the company said on the FAQ page. “As a result of this growth, in October of 2024, we announced that we are removing the ability for users to send or receive money using the Zelle app starting April 1, 2025.” PYMNTS noted that the page advised users of the Zelle app to visit a “find your bank” page on its website to see if their bank or credit union offers Zelle; to...
Post a Comment
Read Complete Article HERE>»