Skip to main content

Practical Tasks that Achieve Strategic Benefits; by Tim Harrington CPA


Focus the Meeting Agenda & Board Packet on the Important!
By Tim Harrington, CPA

At TEAM Resources, we believe the board packet and monthly board meeting agenda should be built around the credit union’s Purpose (Mission) and Key Strategies. This is board level stuff. As we look at the information generally provided to a board in the packet, most directors cannot easily discern what is important, such as what is supporting the Purpose and Key Strategies. Board packets generally contain a lot of information and detail that is operational in nature. The format of information presented to the board can make their job easier or harder. Out of not knowing exactly what the board really wants from the CEO and the  executive team, the CEO will usually give them a “shotgun approach.” That is very common for CEOs to do in the absence of board guidance.

Start everything with a reminder of “Why We Are Here”: The Mission (Purpose) and Key Strategic Drivers.


From the TEAM Resources approach, the general requirement for the board packet and meeting agenda are as follows:

1. Present your Mission and Key Strategic Drivers (KSDs) at the top of your board Agenda right under the word “Agenda.”

2. Create an Instrument Panel of the Key Strategic Measures.
This will help keep the board (and your management team) discussing the big picture.

3. Limit reports to what is essential and what aligns with Purpose and Strategy:
  • CEO report
  • Financial Report
  • Strategic Report
  • Executive Staff reports
4. The Executive Staff Reports should align with Purpose and Strategy.     
    • Start every staff report with a direct indication of how this report aligns and supports the Purpose and Key Strategic Drivers (KSDs). 
    • This compels the Executive Staff to recall what their big picture purpose is. It also guides the directors reading the report as to why this information is being shared with them.
    • Reduce executive staff reports to those things that tie to the Purpose, KSDs, a standard industry ratio, or those that regulation requires.
    • Keep the reports as a “brief” or a “summary” unless a high level of detail is required.
    • The CFO can do an in-depth financial analysis semi-annually (or at most quarterly). Otherwise the report is a brief or summary that aligns with strategy.
5. Deep Dives:
There is information that is helpful for the board to get a more comprehensive view of, but only periodically. These “Deep Dives” might take place the 1st and 2nd month of each quarter for example. They require a little extra meeting time as you go into depth. We would recommend scheduling a deep dive for the following items.
    • Asset Liability Management (ALM)
    • Investments
    • Branch activity
    • Commercial lending
    • Allowance for Loan Losses (ALL)
    • Enterprise Risk Management
    • Others as determined by the board
6. Remove from the board packet any info that does not tie to the Purpose and KSDs unless it is:
  • required by regulation;
  • a pressing urgent need;
  • something that is out of the ordinary and important;
  • something that is at variance with what was planned;
  • a policy update; or
  • is just needed due to common sense.
By using these ideas, the board will see and stay on the big picture. The more purely operations information the staff gives, the more directors feel the need to review and question it. By giving reports on the Purpose and Strategy, it helps the board stay on a level where they are really helpful to the organization.

Kevin Smith
Consultant/Publisher
Team Resources
608-217-0556

https://forteamresources.com/tims-blog/
Ksmith@forteamresources.com

Save The Date

 

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

The Case for Sharing a CEO Between Credit Unions

  Embracing Collaboration: The Case for Sharing a CEO Between Credit Unions In recent years, credit unions have faced numerous challenges, from regulatory pressures to evolving member expectations. As many seasoned leaders retire, smaller credit unions often find themselves at a turning point. In this landscape, one innovative solution is gaining traction: sharing a CEO between two credit unions. This approach not only addresses financial constraints but also fosters collaboration and enhances service delivery. The Rationale Behind Sharing a CEO 1. Financial Sustainability One of the most pressing concerns for small credit unions is maintaining financial health amid rising operational costs. A shared CEO model alleviates the financial burden of hiring and compensating a full-time executive. By splitting salary and benefits, both credit unions can allocate resources more effectively, allowing for investment in member services, technology, and community initiatives. ...
Post a Comment
Read Complete Article HERE>»

Reading Up On Recessions

  Reading Up On Recessions       Background Stemming from the Latin word “recessus” (meaning “a retreat”), recessions are  sustained periods  of declining activity in a country’s economy. During a recession, unemployment rises while economic output falls across a large swath of industries. Recessions are inevitable in modern economies, with one occurring about every six to seven years ( What causes recessions ?).   One common definition of a recession is when a country logs two consecutive quarters of shrinking gross domestic product, but in practice, ...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - Landmine Rat Honored

  Landmine Rat Honored   Cambodia unveiled the world’s first statue honoring a landmine-detecting rat (w/photo) Friday. Magawa the rat lived to 8 years old and identified more than 100 landmines and other explosives from 2016 to 2021.  There are more than 100 African pouched rats deployed in landmine detection operations across the world. To identify mines, the rats are trained to sniff out explosive compounds like trinitrotoluene, or TNT. (The rats are not heavy enough to trigger detonation.) In Cambodia, up to 6 million landmines remain undiscovered, most planted during three decades of conflict, from the Vietnam War era through Cambodia's civil war . Since 1979, roughly 20,000 people have been killed in Cambodia, and roughly 40,000 wounded as a result of the mines. Magawa cleared more than ...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - The gold standard, explained

  Gold Standard       The gold standard, explained A gold standard is a system where a country’s currency is pegged to, and can be converted into, a fixed amount of gold. It’s typically meant to create a sense of security in the country’s currency: When a government uses a gold standard , its currency can be exchanged for an equivalent amount of gold—although regulations around redemption vary by country.   After the Civil War, in 1873, America adopted the gold standard for the first time. At the time, if gold was priced at $100 an ounce, each dollar  rep...
Post a Comment
Read Complete Article HERE>»

Open Banking Pushes Leading Credit Unions Ahead In Race For Member Loyalty

  https://youtu.be/pUIV8hwSDCE NEW YORK—Credit unions that embrace open banking aren’t just keeping pace with competitors—they’re pulling ahead, new data show. A new report finds that innovation in digital tools and personalized experiences is emerging as the decisive factor separating credit unions that win lasting member loyalty from those at risk of losing ground. “ The 2025 Credit Union Innovation Readiness Index: Closing Gaps, Winning Members ,” a June report produced in collaboration between  Velera  and PYMNTS Intelligence, underscores innovation as a defining factor for credit union success. iStock-Korakrich Suntornnites “Facing shifting expectations from both consumers and small to medium-sized businesses (SMBs) toward digital convenience and tailored experiences, credit unions must modernize not just to compete with traditional banks, but to remain relevant to their members. The report, based surveys of 500 credit union executives, 15,000 U.S. consumers, and nea...
Post a Comment
Read Complete Article HERE>»

Long-Stalled Credit Card Competition Act Moves Forward In Senate Clarity Act Markup

WASHINGTON—A long-stalled bipartisan push to boost competition in the credit card market moved closer to becoming law late Friday, as Sens. Roger Marshall (R-KS) and Dick Durbin (D-IL) advanced a new amendment attached to the Senate Agriculture Committee’s markup of the Digital Asset Market Structure and Investor Protection Act, commonly known as the Clarity Act. Dick Durbin The amendment, a core component of the long-debated Credit Card Competition Act, would prohibit major credit-card networks and large issuing banks from enforcing network exclusivity on credit cards. Supporters argue the measure would expand transaction-routing competition, weaken the dominance of the largest payment networks, and reduce swipe fees that merchants say inflate consumer prices. The renewed momentum reflects President Trump’s recent backing of efforts to rein in credit card costs, a shift that has altered the political trajectory of legislation that has struggled to advance in prior Congresses. With Tru...
Post a Comment
Read Complete Article HERE>»

USPS Defends Banking Pilot, While Opponents Call It Illegal

  By David Baumann - July 11, 2022 Program has faced opposition from the outset, including from credit union groups, and has struggled to gain real traction. The U.S. Postal Service (USPS) argued this week that the controversial pilot program it is operating i...
Post a Comment
Read Complete Article HERE>»

Meet Spokane Firefighter Credit Union (SFCU) New President/CEO - Troy Clute

Meet SFCU's New President/CEO - Troy Clute  Troy Clute serves as the President and Chief Executive Officer of Spokane Firefighters Credit Union, bringing 29 years of experience in banking and finance. His career includes extensive leadership roles across the industry, with a strong foundation in consumer lending and member-focused financial services. Troy is a graduate of the renowned CUES CEO Institute Program, having earned the Certified Chief Executive (CCE) designation—one of the highest leadership credentials in the credit union movement. His leadership is defined by strategic vision, operational excellence, and a deep commitment to serving Spokane’s firefighter community and their families. Beyond his professional role, Troy values family above all. He and his wife, Karri, have been married for 36 years and share two grown children, Kellen and Kennadie, as well as three grandchildren—Tyus, Izze, and Major—who keep life joyful and full of adventure. When he’s not leading the c...
Post a Comment
Read Complete Article HERE>»

The impact of recent bank failures could impact credit unions.

The failures of Silicon Valley Bank (SVB) and Signature Bank, combined with the FDIC’s decision to cover all depositors could have an impact on credit unions. With over 93% of their deposits uninsured, SVB appears to be the poster child for poor strategic planning. The bank got caught short when the Fed raised rates. For credit unions, the real story is the decision to cover ALL accounts regardless of the amount in the account. Where is the threat to credit unions? Credit unions had no role in the failures of SVB and Signature Bank. The threat lies in the Treasury and FDIC’s decision to guarantee the funds in every account…no matter how much was in that account. While the Treasury Secretary and FDIC Chairman Gruenberg may have felt the need to do so to restore confidence, this action just kicks the can down the road. And the road will have no end if NCUA feels the pressure to do the same thing if a similar situation hits the credit union movement. Should there be a conservatorship or...
Post a Comment
Read Complete Article HERE>»