MADISON, Wis. (12/23/14)--A credit union's board of directors must ask the CEO certain questions to evaluate whether the CEO is a well-rounded leader, a leadership consultant told the Credit Union National Association's Credit Union Directors Newsletter
In the newsletter's December issue, Jeff Rendel, president of Rising Above Enterprises, suggested that boards pose two questions to their CEO:
- What criteria would you use to assess a peer?
- What standards would you want another CEO to use during your assessment?
Well-rounded CEOs possess different strengths, said Rendel. They hail from diverse credit unions with a range of asset sizes but gravitate toward similar measures to gauge effectiveness. Their thoughts can be boiled down into six components, with the understanding that leadership binds them together.
Consider adding these features to your credit union's models for evaluating, developing, and rewarding your CEO:
- Focus on the future. How is the CEO deliberately positioning the credit union for the future? What strategies has the CEO developed and implemented? What patterns does the CEO notice in the broader environment, and how does the leader act on this to steer the credit union? Where does the CEO add innovative products, services, and processes?
- Stay connected to members. How does the CEO remain connected with the members? How does the credit union stack up against the competition? What benchmarks disclose its status? How loyal are the credit union's members? What lifetime value can it expect from its members? Is the credit union growing in revenue, profits and loyalty?
- Keep a steady focus on people. What leadership pipeline and development system does the EO have in place? How are employees engaged and growing in their jobs and career ambitions? How efficient is the credit union in using employees' talents where they best fit?
- Achieve and sustain business results. Which financial metrics offer evidence of success? Revenue growth? Profit margins? Asset quality? Capital ratios? Efficiency ratios? All of the above? Does the CEO report on and achieve the metrics of success established by the board?
- Develop community leadership. What does the CEO do to support the communities the credit union services? How involved is the CEO in the community? How involved are employees in the community? Does the CEO have a leadership role in professional associations? How involved is the CEO in industry advocacy efforts?
- Lead your own life, too. How often can your CEO really get away? Has the CEO developed a solid leadership team to take the reins while absent? How is the CEO's overall health as it affects leadership of the credit union?
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