Credit Union Leaders! Objectives · Group Poll Questions… • For CEOs: What is the most critical factor in creating a great relationship with your Chair/Board? • For Chairmen/Directors:

2015 www.theamericanboomer.com 1

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“Providing Strategies for Success”

“ A Productive CEOAnd Director Relationship”

Iowa Credit Union League ConventionSeptember 16th, 2015

Presented By: John A. Vardallas CUDE Founder/CEO TheAmericanBoomeR Group

Madison, Wisconsin USAwww.theamericanboomer.com

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Welcome Iowa Credit Union Leaders!

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Today s Program Objectives:• To Explore more effective methods

of how CU CEO and Board relationships can become more productive.

• To Review the sources of conflict that can undermine effective relationships.

• To Discover some effective methods of improving CEO/Board Relations.


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What Do CU Boards Do?Lets Check Your CUs Dash-Board

Dials

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Factors Making Leading/Governing Our Credit Unions Tougher…. • Pace of New Technological Developments• Rapid Change Making LRP Difficult• The Fluctuating Economy• The Global Competitive Marketplace• Overwhelming But Crucial Information Provided

Through the Internet/Mobile• Members Expectations (Real Time Desires)• Leading & Managing A Diverse/Multi-Gen

Workforce• Others…Can You Say “Regulation”

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What is Leadership?

Leadership is…“A relationship between those who choose

to lead and those who choose to follow.” (Kouzes & Posner)

Effective Leadership… is the process of moving yourself and others in directions that are ultimately in the long term best interests of all stakeholders.


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Thoughts on When Leaders Are at Their Best….(CEO/BOARD)

Challenge the Process (Search for Opportunities, Take Risks)

Inspire A Shared Vision (Envision the Future, Enlist Others)

Enable Others to Act (Foster Collaboration, Strengthen Others)

Model the Way (Set the Example, Plan Small Wins)

Encourage the Heart (Recognize People, Celebrate Accomplishments)

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Credit Union Transformational Leadership…..

Leadership Anchored by the Credit Unions“Core Values”

They are the principles that shape the behavior, thinking and daily

decisions of everyone in the credit union.

International Credit UnionOperating Principles/Values• Open/Voluntary Membership• Democratic Control• Non-Discrimination• Distribution to Members• Building Financial Stability• Service to Members• On-going Education• Cooperation Among Cooperatives 9


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“Shared Core Values”University of Wisconsin Credit Union

“Your Best Interest”Our principles remain focused on delivering the

financial solutions members have come to expect with honesty and integrity they deserve. We’re committed to doing the right thing, whether its offering unbiased advice or treating each member fairly regardless of financial capacity. We believe our success is sustainable if we pursue the simplicity and focus represented by our guiding principle---

Your best interest always comes first!

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CEO/BOARD Must Be A Symbiotic Relationship and A

“Partner Ship”The Board cannot govern well without

the CEO s COLLABORATIONThe CEO cannot effectively lead the

CU to its full potential without BOARD SUPPORT

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Relationships (like a Marriage) Are Based On Key Common Factors & Need to B Nurtured…• Trust• Mutual Understanding of Roles• Communication• Nurturing/Developing• Team Enabling• Serve the Best Interests of the

Stakeholders


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Thoughts on “Care & Feeding”…Like any relationship the interplay of a

CEO/Chair & Board requires work!If ignored it will drift without direction.If properly cultivated it can become strong

and effective.Effort from all parties is needed and the

following 6 Elements should help the relationship to flourish.

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Factors for a Good Relationship…1) TRUST2) COMMUNICATION3) EXPERTISE4) PREPARATION5) RESPECT6) SHARED VALUES/VISION FOR THE DIRECTION

OF THE CREDIT UNION ALL IN BEST INTERESTOF THE MEMBERS!

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The Leadership Relationship Challenge……CEO/BD are Clear on their Roles & Functions…

--The Board : Governance/One Employee/Committees/Sets Policies/Makes Decisions/Sets Goals/Gives Direction/Approves Plans/appraises CEO/Self Evaluation/Provides for Management Succession/Strategic Planning.

-- The CEO Management/CU Staff/ Implements Policies/Executes Plans/Manages Operations/Encourages Staff/Board Development/Provides Services to Members/Assesses CU Direction/Annual Planning.


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Relationships…

Board• CEO• Members• External CU

Organizations• Community• (Regulators)

CEO• Board• Members• External CU

Organizations• Community• Staff• Regulators

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Framing the Relationship…

In addition to communication, mutual respect, trust and engagement the following are some ways which executives and directors can maintain a great working relationship:

-- Know each others Responsibilities.-- Share the same Mission/Vision/Values.-- Continually Assess Performance (CEO/BD).-- Stay educated on Changes/Emerging issues.-- Resolve Issues early.

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4 Factors Necessary to Build a Positive Relationship of Mutual Trust1) Performance which meets the agreed

upon Goals.2) A CEOs flexibility to adapt to the Boards

appropriate needs for information and involvement.

3) Adequate updating of trends/projects and operations.

4) Clear evidence of a positive response from the membership/staff/ regulators.


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Group Poll Questions…

• For CEOs: What is the most critical factor in creating a great relationship with your Chair/Board?

• For Chairmen/Directors: What is the most critical factor in creating a great relationship with your CEO?

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CEO Relationship Assessment

Questions to ask yourself as you evaluate your relationship with your board.

1) Clarify the Vision- how will my Chair/Board and I operate this year/ what will success look like?

2) Establishing Effective Communication – Do I understand best how to communicate with my volunteer leaders? How do I avoid pitfalls? Do I have a system in place for effective communication? What types of information do I think are important to communicate on a regular basis?

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CEO Relationship Assessment (Cont)3) Ensuring Sufficient Training- Have I invested sufficient

time and resources in training my board?/What training/orientation program is in place/What kinds of training to I need to provide for the entire board vs new board members?

4) Determining Roles/Responsibilities- Are my and staff/volunteers clear on who does what/when?

5) Understanding Performance & Expectations-Do I have a good understanding of my boards expectations and how my performance will be evaluated? What specific goals did the board and I agree on? How are they being measured and discussed? What relevant information should I communicate to the board relative to my performance?


Board Assessment--What Boards Want in a CEO• Committed to the CU Ideals• Respectful of the Board• Good Communicator• Results Oriented• Innovative Leader• Good Listener/Open Minded• Team Player/Educator• Other 22

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3 Major Areas of Board/CEO Conflict

1) Differences in Approach and Philosophy(Values)

2) Incompatibility in Style (Communication and Decision Making)

3) Conflict Over Role(Expertise/Performance/Accountability)

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Model to Reduce Conflict--A Discussion Addressing:

• Do we want a true CEO?• What do we have now?• What decisions does the Board make that the

CEO would like to make?• What decisions does the CEO make that the

Board would like to make?• What is or should be the CEOs major focus

effort? What should be the Boards major focus effort?


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Warning Signs: “Breakdown Ahead”

• Do you sit in Board meetings with arms folded trying your best not to make contact with your CEO?

• Do you or other Board members leave the room when the CEO is talking?

• Are there lots of sidebar conversations when the CEO is speaking?

• Do you no longer ask questions of your CEO?

• Are you/other Board members reluctant to approve a raise for the CEO?

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Warning Signs (Continued)….• Do you no longer ask questions of your CEO?• Has the Board withheld resources tied to the

CEOs execution of the strategic plan?• Have you or other Board members heard

reports of passive resistance from the staff?• Do subordinates go around the CEO and come

directly to the Board to complain?• Is the Board going directly to the staff and

leaving the CEO out of the loop?• Has the Board delayed the CEOs performance

review or provided only a perfunctory review?

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Poor Board/CEO Relationships

• Inappropriate Balance of Power Between Board & CEO.

• Micro-Mgmt by Board.• CEO Failure to Build

Communication/Trust.• Personal Ego Issues by Board

Members.• Unethical Behavior By Board/CEO.• Factions on the Board.• Poor Conflict Management Styles.


Example of a Negative “Board Micro-Management” Relationship• Advising Staff How to Do Jobs• Helping Staff do Day to Day tasks• Managing Personnel Disputes• Going Over Most Purchasing Decisions• Having a Permanent office in the Credit

Union

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Characteristics of an Effective CEO• A powerful Business & People acumen.• Ability to embrace Diversity and work with

Volunteers/ A Developer of People.• The ability to Inspire not Motivate.• A Visionary/Passionate About the Business.• A Builder of Partnerships/Alliances.• Being a Servant leader/An Innovator.• A Curiosity of the World/Facilitator of Change.• Convert the Learning of ideas into Practice. • A Risk taker and not fearing failure.• The Ability to Execute plans.

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Characteristics of an Effective Chairman/Board• Serves as a Role model.• Open minded/Serves the Membership.• Consensus Builder/Facilitator.• Good listener/Good communicator.• Visionary/Committed to CU Philosophy.• Seeker of Feedback/Thick skinned.• Accountable/Available to the CEO.• Displays Maturity/Empathy.• A Calculated Risk Taker.


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New Leadership (CEO/BOARD) Skills

Understanding Your Emotional Intelligence

• Self- Control• Persistence• The Ability to Motivate Oneself• Deal with Issues as

Situational Not Personal!

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Practice “Admired” Leadership

In times of crises, practice heroic leadership toward your people (STAFF/BOARD/MEMBERS/COMMUNITY) to gain their confidence.

-- Calm-- Confident-- Communicative-- Reassuring

(Examples of CU Crises Situations)

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“Best Practice” Board/CEO Team Relations• Open/Honest Communication/Listening Skills.• Freedom to Discuss Difficult Issues.• Soliciting/Sharing Ideas/Keeping Each Other

Informed/Educated.• Fully Disclose Pertinent Information.• Feel Safe to Admit Mistakes/Discuss Negative

Information/Open Interaction Board/CEO.• Trust That Agreements Will Be Kept.• Keep Each other Fine Tuned & Healthy.• Expect All Will Act in Best Interests of Members!


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Keys To Maintaining the Relationship…

• Know and have a Shared Understanding of Each others Role.

• Share the Same Vision for the CU.• Continually Assess Performances.• Resolve Issues Early.• Speak With ONE Voice to the Members.• Stay Educated/Keep Growing/Learning.

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Back Home “Wish List” Work Slide….

Dear CEO/Chair I wish you would do More of:------And Do Less of:------

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And Finally…..…Our Challenge as Leaders

(CEO & Board) will be to

“Model the Team Behavior &Transfer the Passion” or higher calling for what we do for our members

to all who are engaged in serving for the future.This will be your most important

Legacy as A Team and

Ensure Your CEO/Board “Marriage” is Made In ??


Thanks for Your Attention!

May the Road 2 The Future B Smooth for You! 37

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About John A. Vardallas CUDE“Providing Strategies for Success”

John A. Vardallas is an International Credit Union Business Consultant and Founder/CEO of

TheAmericanBoomeR Group, a Madison Wisconsin based Speaking and Consulting Business. His work

focuses on helping credit union leaders and organizations increase productivity and profitability.He conducts High Performance Leadership & Management Development, World Class Service, Change and Growth

programs for staff and directors. He also facilitates Strategic Planning sessions for a variety of credit

unions throughout the US each year.For a free E-Catalogue of Programs & Services you may contact John/

Office (608) 221-4621 Cell (608) 577-8707/e-mail [email protected]/ www.theamericanboomer.com

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Lets Keep the Conversation Going…• Check out Johnny V s Blog/Website @www.theamericanboomer.comLeadership Development/Strategic

Planning/World Class Service/Subscribe Free to “Today s BoomeR” Digital Magazine

• E-mail John Vardallas: [email protected] • Check out TheAmericanBoomeR on

Facebook• Follow TheAmericanBoomeR on Twitter@theamericanboomer

Documents

Credit Union Leaders! Objectives · Group Poll Questions… • For CEOs: What is the most critical factor in creating a great relationship with your Chair/Board? • For Chairmen/Directors: