Having served for nearly three decades on the board of Xceed Financial Credit Union, I think I bring a fair amount of value to the table – in terms of both skill set and experience. Among the most valuable insights my experience has revealed, however, is that I don't have all the answers. While I believe my perspective to be important and valid, I also believe the strength of any organization's board arises from its diversity.
In the past, board diversity largely meant diversity of skill sets – ensuring the group included people with strong expertise in finance, accounting, legal, marketing, human resources and technology, for example, to help inform and guide credit union policy and strategic direction. Each of these skill sets continues to be essential, but their importance is now matched by the need for diversity in age, gender and ethnicity.
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Make no mistake – I'm not making a case for political correctness. The case I'm making is for the survival of our organizations and of the credit union movement. To guide credit unions into a vibrant and prosperous future, our boards need to include people with critical skill sets who also represent both our current members and those we wish to join our ranks in the years to come.
We have a long way to go. In the area of gender balance, for example, women hold just 18.7% of board seats among S&P 500 financial companies. That's a bit less than the S&P 500 at-large, where 19.2% of board seats are held by women.
Many credit union boards recognize the need to achieve better balance and inclusion. The question, for many, is how? I don't purport to have all the answers, but I do have some ideas on the subject that spring from our experiences at Xceed Financial.
I am very proud of the gender balance of our credit union's board and volunteer roster. Of the nine individuals serving, five are women.
We also have made good progress in recruiting younger volunteers. In 2006, the average volunteer was 63; today it is 59. Our newer volunteers are not only younger, they serve in key leadership roles with our sponsors. As such, they bring both a fresh perspective and intimate knowledge of what is important to our sponsor companies.
While our record is strong, we haven't yet declared victory on diversity. The approach we are taking is multi-faceted. It is our board's expressed policy to pursue diverse representation, and as volunteers retire or resign their positions, our nominating committee is charged with seeking out qualified candidates who can help us meet our diversity goals. Importantly, our credit union's management is aligned with these values. Diversity among our associate leadership is outstanding, and our member outreach also exhibits our credit union's commitment. This includes, for example, Xceed's support for the activities of many of Xerox Corporation (our largest select employer group) diversity groups, such as The Women's Alliance, the National Black Executives Association, Hispanic Association for Professional Advancement and others. These activities help seed the ground, making clear to members from all walks of life that they and their perspectives are valued by their credit union.
I recognize that volunteering to serve on a credit union board of directors isn't for everyone. Certainly, the fact that it's an unpaid position eliminates a lot of people who might otherwise be interested and qualified, but who simply cannot afford to make the time commitment necessary to contribute. But by being more inclusive in our recruitment practices, we can ensure that we're casting a wide net and doing everything possible to achieve the diverse boards that will help our credit unions succeed and thrive in the future.
Dennis Ruffner is board chair for Xceed Financial Credit Union. He can be reached at 425.591.2019 or [email protected].
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