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The Case for Advisory Committees in Credit Unions

 

Grant Sheehan, CEO, NCOFCU

The Case for Advisory Committees in Credit Unions: Ensuring Vibrant Leadership and Member Engagement

In the world of credit unions, the leadership structures often reflect a unique balance of tradition and innovation. For many credit union boards of directors, tenure can stretch over decades, creating a wealth of experience and stability. However, when these long-serving members retire from the host company, a common phenomenon arises: a reluctance to leave their positions. While their dedication is commendable, this situation can pose challenges to the credit union’s ability to adapt to the evolving needs of its membership.

As directors transition into retirement, they may find that their connection to the credit union and its members has diminished. Having spent years in leadership, their focus can inadvertently shift to legacy management—relying heavily on what has historically worked rather than embracing new strategies. This is where the formation of advisory committees comes into play, providing a critical bridge between seasoned leadership and the fresh perspectives of an active membership.

The Benefits of Advisory Committees

1. Fresh Insight: Advisory committees draw on the voices of diverse members who represent various demographics and interests within the credit union. By assembling teams of active members, these committees can provide management and the board with real-time insights into what the membership truly values. This fresh perspective is invaluable for understanding current trends, preferences, and expectations.

2. Bridging the Gap: As board members retire from their associated companies, there is often a disconnect between the decisions being made at the leadership level and the desires of the credit union members. Advisory committees help to bridge this gap, ensuring that members’ needs and wants are communicated clearly and effectively. This flow of information allows the board to make informed decisions that resonate with the present and future membership.

3. Encouraging Innovation: Change can be daunting, especially for seasoned directors who may feel comfortable with established practices. Advisory committees can foster a culture of innovation by presenting new ideas and solutions. By incorporating the latest trends and feedback from members, credit unions can evolve, attract new members, and keep existing ones engaged.

4. Fostering Engagement: By actively involving members in the decision-making process, advisory committees promote a sense of ownership and community. Members feel more valued and connected to the credit union, leading to increased loyalty and participation. A proactive approach to member engagement brings diverse voices to the table and creates a strong sense of belonging.

5. Reinforcing Accountability: Establishing advisory committees instills a system of accountability in the governance of credit unions. With input from the membership, boards can assess their strategies against the evolving needs of their members and adjust accordingly. This level of transparency strengthens the relationship between directors and the membership, ensuring both parties are working toward a common goal.

While the dedication of long-serving board members to their roles is commendable, it is essential for credit unions to continuously evolve. The formation of advisory committees provides the necessary foundation for gathering insights from active members and understanding their needs. As credit unions seek to thrive in an ever-changing financial landscape, it becomes imperative to blend experience with fresh perspectives. By doing so, they can ensure that they remain relevant and responsive to the desires of their membership. Embracing this model ultimately paves the way for a vibrant, engaged, and forward-thinking credit union board. 

Grant Sheehan CCUE | CCUP | CEO, NCOFCU
ceo@ncofcu.org
305-783-3544

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