Five Powerful Questions for your Board
Written by Anthony Demangone
A recent survey (McKinseyQuarterly.com) of corporate directors found that the "average" director knows far more about their company's finances than they do about risks facing the corporation or the dynamics of the company's industry.Â
Their findings are highlighted below:
The survey was not directed at the credit union industry, but the findings are still useful. Â How would your credit union's directors stack up to the following five questions?
How well do you understand:
- Our credit union's finances?
- Our current strategy?
- How we create value?
- The risks we face?
- The dynamics of our industry?
It would be easy enough to conduct your own survey. Â Assign a value to their level of undestanding: 1 = complete; 2 = good; and 3 = poor. Â You could look at individual directors and the board as a whole to find whether knowledge gaps exist.
Will the results be good or bad? Â I would argue this: Who cares? Â I don't understand those who fear medical exams because exams might uncover bad news. Â If there's a problem with my health, I want to know about it yesterday. Â And if individuals on my board don't have a clear understanding of our finances, our industry, or the risks we face, I'd rather know that sooner than later. Â Once a weakness or need is identified, it can be addressed.Â
Have a great week, everybody!
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