Skip to main content

How to Spot a Board in Trouble: Tim Harington

This is not a comprehensive list. In fact, we’d like to hear from others the things that they’ve seen or what they look for. We’re sure our smart readership has some things to add. This is also not a checklist. We’re not suggesting that once you’ve identified all eight of these you’ve found your troubled board. (Notice that some of these are countervailing.) But these are things that show up regularly and have been present when dealing with troubles.
How to Spot a Board in Trouble, Red Flags
How to Spot a Board in Trouble
  1. No turnover on the board – Why? Lack of desire for change? Lack of recruiting? Difficulty in recruiting? Contentment with the status quo?
  2. Heavy turnover on the board – Again, why?
  3. No diversity on the board – this means you really don’t represent the demographics of your membership. (We doubt your field of membership is made up exclusively of 67-year-old white dudes.)
  4. The CEO attends all committee meetings – Is this the board’s overreliance on the CEO? Or is this the CEO's inability to let go of control?
  5. No executive sessions – This suggests that there is a lack of trust somewhere (or a lack of understanding of executive sessions). See our blog post about this topic.
  6. Same chair for the last 20+ years – This is a red flag about resistance to change. (This could be a chair that has been begging for years for someone else to take the helm, which is also a red flag.)
  7. Four CEOs in the last five years – Not long ago we talked about the “rebound” CEO, which means it’s very possible to have had three CEOs in the last five years and that’s only a bump in the road and not a red flag. But the minute you reach the number “four” this is a giant red flag.
  8. All of the board members are from the single SEG sponsor (even though the CU has had a community charter for years). Do we have to explain this one? See #6.
How to Spot a Board in Crisis
How to Spot a Board in Crisis
Some of you are going to disagree. We’re fine with that. 

Some of you are going to point out a piece of anecdotal evidence that contradicts what we’ve said above. We’re also fine with that, and we still strongly make our claim despite your story.

Let’s duke it out and talk about it.

Yes. Context is everything. These are red flags that cause us to explore and ask more questions.

 Team Resources

7049 E. Tanque Verde Rd., PMB 136
Tucson, AZ 85715

Phone: 520.290.5721
Fax: 520.290.8378
Cell: 520.906.7501





Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Bipartisan Bill Would Expand Federal Credit Union Investment Authority

WASHINGTON—Reps. Janelle Bynum (D-OR) and Young Kim (R-CA) introduced bipartisan legislation Thursday that would significantly broaden the investments available to federal credit unions, including giving them new authority to invest in corporate debt and asset-backed securities. Young Kim The Credit Union Investment Authority Act would amend the Federal Credit Union Act to expand federal credit unions’ investment authority. Under the bill, federal credit unions could invest in marketable debt obligations issued by companies and other organizations that are not limited to serving credit unions. The legislation would cap a credit union’s investment in the obligations of any single issuer at 10% of its paid-in unimpaired capital and surplus. The measure would also expressly authorize investments in asset-backed securities as defined under the Securities Exchange Act of 1934. Kathleen Coulombe The bill would require the NCUA board to issue implementing regulations within one year of enactm...
Post a Comment
Read Complete Article HERE>»

Liquidity Resources

Liquidity Resources Liquidity is a credit union’s capacity to meet its cash and collateral obligations at a reasonable cost. Adequate liquidity is necessary to efficiently meet both expected and unexpected cash flows and collateral needs without compromising the credit union’s daily operations or financial condition. Effective credit union management identifies, measures, monitors, and controls exposure to liquidity risk. Primary Risks In managing expected cash flows, a credit union may experience situations that increase its liquidity risk. These situations include mismatches between sources and uses of funds, market constraints on the ability to convert assets into cash or to access sources of funds (market liquidity), and contingent liquidity events. Changes in economic conditions or exposure to credit, market, operational, legal, and also can affect an institution’s liquidity risk profile. None of these risks are mutually exclusive, and interrelated risks may contribute to increase...
Post a Comment
Read Complete Article HERE>»

Just What Is Our Gross Domestic Product

    A core measure of a nation's total economic activity, gross domestic product represents the value of all final goods and services produced within a country's borders in a given year. Economists can calculate a country's aggregate economic activity by adding together its total consumer spending, business investment, government spending, and net exports. As of June 2026, the US' inflation-adjusted GDP was about $24.2T. > The three different ways to calculate GDP. ( More ) > How "nominal" GDP differs from "real" GDP. ( More ) Since the concept was popularized by Nobel laureate Simon Kuznets in the 1930s, GDP has become one of the most important economic indicators in both domest...
Post a Comment
Read Complete Article HERE>»

Senate, 51-47, has confirmed John Crews to the NCUA board

WASHINGTON—The U.S. Senate, 51-47, has confirmed John Crews to the NCUA board, clearing the way for him to succeed Kyle Hauptman and return the agency to a single-member board following the Trump Administration's removal of Democratic board members Todd Harper and Tanya Otsuka earlier this year. Maintaining the foundational stability of the credit union system Supporting efficient, risk-based regulation that accounts for institutional size and operational differences Preparing for technological advancement while safeguarding member assets Encouraging the growth of new credit unions to serve underbanked and military communities Preserving an open, accessible, and collaborative dialogue between the NCUA and the credit union movement Crews, who most recently served in the Treasury Department, has said his priorities include reducing regulatory burden for smaller credit unions, encouraging innovation and supporting the chartering of new credit unions, while maintaining the safety and s...
Post a Comment
Read Complete Article HERE>»

New Analysis Sees Flat Mortgage Market for Next Several Years, Rates to Remain Above 6%

NEW YORK — The U.S. housing market could experience its weakest year in more than a decade as elevated mortgage rates suppress sales and keep home prices nearly flat, according to a Capital Economic s forecast. Capital Economics expects annual home sales to fall to about 4.7 million by the end of 2026, which would represent the slowest pace since 2011. After a modest recovery in 2025, homebuying activity has weakened this year as borrowing costs have increased amid renewed inflation concerns and expectations for higher Federal Reserve interest rates. “Strengthening economic growth will not provide much of a lift to the housing market, which we expect to remain in its structural malaise,” Capital Economics economists wrote, according to Business Insider. Mortgage Rates to Remain Above 6% Capital Economics expects mortgage rates to remain above 6% for at least two more years, continuing to constrain affordability and discourage homeowners with lower-rate mortgages from selling. The aver...
Post a Comment
Read Complete Article HERE>»

Charting Your Career Path in the Age of AI: 6 Questions to Get You Started

By Peter Myers Increasingly, seasoned talent is stepping out of senior leadership roles and green talent is filling the void. By 2030, 21% of the population will be 65+ (a 25% increase over five years) and Gen Z will represent  ~30% of our workforce.  As institutional knowledge and wisdom voids are created, credit union leadership and governing bodies must also grapple with the reality that 32% of U.S. adults score below the baseline proficiency level in adaptive problem solving, and that a growing number are “ clustered at the bottom levels of proficiency .”   However, big changes also present big opportunities for those committed to developing their leadership skills.  Enter Generative & Agentic AI Not only is the composition of the workforce changing significantly, existing processes and jobs are being upended by Artificial Intelligence. Boards are asking for the AI strategy as employees fear being replaced. It’s a new and evolving landscape that r...
Post a Comment
Read Complete Article HERE>»

Existing-home sales fell 3.7% in March

ARLINGTON, Va.—Existing-home sales fell 3.7% in March to a seasonally-adjusted rate of 6.01 million units, representing a 12.3% increase in sales versus a year ago. Curt Long "Headwinds are mounting as mortgage rates spiked 20 basis points over the course of the month, causing demand to dip and buyers to hold off," said Curt Long, NAFCU's chief economist and vice president of research. "Mortgage applications have also fallen to their pre-pandemic level. "New homes being built should also relieve some price pressure, but they won’t be ready until later in the year. NAFCU expects sales to be strong for the rest of the year, only limited by supply and the resulting price increases," concluded Long. Sales fell in all four regions in March, with the West seeing the largest drop (-8%), followed by the South (-2.9%), Midwest (-2.3%), and Northeast (-1.3%). Versus a year ago, sales were up in all regions over the month. The median existing-home price rose from $3...
Post a Comment
Read Complete Article HERE>»

Dolphin Debit Access ATMs Made Simple

Dolphin Debit is the largest “pure play” provider of ATM outsourcing for credit unions in the United States.  We currently operate over 2,000 ATMs for our clients.  Dolphin has been providing ATM outsourcing services to financial institutions across the U.S. for over 16 years. Our entire staff is solely dedicated to our core focus of ATM outsourcing.  Our internal departments are designed specifically for the execution of optimal results for your ATM program.  Whether you have 2 or 200 ATMs, outsourcing will save your credit union time & money, relieve your staff of the heavy burden of ATM management and assure there is a plan in place for future enhancements and technology upgrades.   Let the experts at Dolphin become your ATM department. CONTACT: URL:  www.dolphindebit.com Address: 1340 Rayford Park Road Spring, TX 77386 ph: 877-247-4182 Email:  Dolphininfo@dolphindebit.com Email:  jwoods@dolphindebit.com
Post a Comment
Read Complete Article HERE>»

Inflation Cools in June Report, But One CU Economist Says There’s One Reason–And it Could Change

WASHINGTON — U.S. consumer inflation cooled more than expected in June, offering relief after several months of elevated price pressures, though economists cautioned the improvement could prove temporary as renewed geopolitical tensions threaten to push energy prices higher. The Consumer Price Index fell 0.4% in June on a seasonally adjusted basis, the largest monthly decline since April 2020, after rising 0.5% in May, according to data released Tuesday by the Bureau of Labor Statistics . Compared with a year earlier, consumer prices rose 3.5%, down from 4.2% in May.  Foot off the Gas Dawit Kebede “Falling gas prices led June’s decline and pulled headline inflation lower year-over-year. Renewed hostilities could complicate the energy picture ahead, and a reversal in gasoline costs would be the most likely channel for that pressure to show up,” said America’s Credit Unions Senior Economist Dawit Kebede. “But softening core prices point to broader-based moderation, suggesting the ea...
Post a Comment
Read Complete Article HERE>»

Mortgage Rates in the U.S. Rise for First Time in Seven Weeks

 Even as new listings decline, inventory is on the rise because homes are taking longer to sell. By Prashant Gopal | December 30, 2022 CU Times Mortgage rates in the US rose for the first time since mid-November. The average for a 30-year, fixed loan was 6.42%, the highest since early this month and up from 6.27% last week, Freddie Mac said in a statement Thursday. Borrowing costs tracked 10-year Treasury yields, which climbed after a report showed that a consumer-price gauge the Federal Reserve watches closely continued to cool. Inflation is still higher than the central bank would like, and wage growth is stubbornly robust, meaning the Fed’s policy of interest-rate hikes is likely to continue into the new year. For would-be homebuyers, mortgage costs are more than double what they were a year ago and “remain a significant barrier to successfully closing transactions,” said George Ratiu, head of economic research at Realtor.com. Purchases have been declini...
Post a Comment
Read Complete Article HERE>»