Tell Me Why I'm Wrong

Feat. Randy Karnes

Approval seeking is not a positive leadership trait

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Why social media and the hunt for Likes and approval is likely to derail future leaders

If you were to ask past leaders in our industry—or any industry for that matter—most are likely to agree that hunting for approvals in an echo chamber is a trap. So how do you coach a new generation of leaders that are growing up in a world where social media reigns?

Future leaders do not need to be “liked” or garner approval as their strongest talents—they need to hone their skills as learners, influencers, and debaters of value. I am not sure that social media does any of that for most of its participants. Can you really learn anything from tracking manipulated, advertised opinions and Likes via social media today? How do we push our leaders to ensure that they are building the talents and drive to build learning organizations and voices that can inspire all of us to benefit?

Being a lifetime student does not come from being agreed with, it comes from the challenges of opposing viewpoints and then creatively learning to reconcile that dissent. When you are fearful of rejection, you will insulate yourself and your beliefs and ideas to the point that learning stops and talents wither. But this is not a new problem; we see it in organizations that do not share their business plans with members, who no longer believe the market cares about their hopes for cooperative ownership, and who have shifted to the idea that consumer acceptance and Likes about the nuances of today’s financial service tactics are more important than what separates us from look-alike-competitors who sell the same nuances.

While the term “echo chamber” may be approaching overuse, it is one that the credit union industry should recognize as not a new problem. As the agents of our credit union member-owners, we have created our professional and third-party commentator echo chambers since the first day we pushed our volunteers out of the operations. The CUNA system, the regulatory system, and other vendor organizations have isolated our conversations and taught us to accept the status quo limits of our influence and debate. We hunted for acceptance and the positive feedback of like-thinkers-like-relationships for decades until we accepted the doctrine of our credit union industry to be worth its weight on our entrepreneurial hopes or innovative thrust towards member-owner potential.

So, we do need to guard ourselves from accepting and pushing our future leaders into an even bigger acceptance of the social media echo chambers that are too consumer-focused and manipulated by network managers way beyond our control or influence. We need to encourage future leaders to think critically, hunt out dissent, and look for the teachings that come from debate and alternate ideas. We need them to hone their skills at negotiating with ideas counter to their own and influence the future from what they learn.

We need to highlight where we fell victim to wanting the Likes of the NCUA, the molds of our trades, and the limited scope of our agreements with each other, and challenge them to debate and learn from the energy of disagreement on the way to new ideas implemented. Tell Me Why I’m Wrong.

What is showing its age more, your board members or your board approach?

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Be careful what you ask for—younger board members might not like what you’re selling

You want younger board members, you can’t handle younger board members! Or replace the word “younger” with some other characteristic you’re looking for: more business savvy, more technical, more mission-based, more member-focused, etc. The bottom line is… have you changed your approach to teaming with board members as a resource to be more?

How young is your approach? Is it a carryover from when your current board members were 33 years old? You might have changed from paper reports to digital ones on a tablet, but are they the same reports? You might have changed the order of the board sections, but have you really changed the board content? You might have moved from a Tuesday evening to a Thursday, but have you added or reduced the number of meetings you have per year? You get the point.

It’s tough, scary, and an uphill battle with traditionalists to upset the apple cart, but when you do bring in new board members, even one by one, the traditions are what you teach, not what they demand. Are you the reason that your credit union makes old souls out of every board member you attract?

Often when I meet 80-year-old-plus board members I find that they have stuck around not because of what is happening now, but because they remember what happened when it was “fun, rewarding, and real” for them as volunteers. They remember when they were part of building the credit union, not just rubber stamping someone else running the joint.

And right there is the key to how you need to make young board members feel today. They need a job, a purpose, and a role from their perspective not yours, not the NCUA’s, and not from the perspective that the place is on auto-pilot.

As a CEO, whether with 50 or 5000 employees, it can seem that you too are watching a business operation that is on auto-pilot when you think about the Monday to Friday operation. You can feel that you are supervising the operation and a board is a redundant asset helping you oversee something that cannot afford anymore supervision. So, you already feel marginalized, and you might be doing that to your board without even realizing it.

Just like you, they need to build something, to sense that they own something, and that their skills are important to something. Renew those feelings in your board and it won’t matter how old they are! They will engage what is being built, they will take interest in what they own, and they will get the pride of being important to it all.

Shift from blaming generational issues on your board and tackle the generational stagnation of your organization’s approach to the value of owners and their volunteering. Build something, if not just enthusiasm, and you will see a change. Tell Me Why I’m Wrong!

Why do we count on CEOs for success?

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Work hard to listen to the crowd, but CEOs are still the key ingredient

For over a decade, I’ve invited credit union CEOs from across the country to come to Grand Rapids and attend a CEOs-only event involving learning and discussion—and they’ve been greatly successful. A day and a half of teaching, and a full day of round table discussion (during which I did my best not to dominate the conversation!). We’ve had great conversations on the hot topics of the day, from compliance to service income, learning from peers, building businesses, and putting data into action. We talked a lot about the things we wanted to do or should be doing. Outspoken CEOs and I implored credit unions to listen, and to act. Some have, but many haven’t.

A couple years ago I introduced a different kind of event—boot camps for solution builders and data-minded individuals. These have also been eye opening for me, and we found CU designers across the network who were eager to come in and not just talk about what we should be doing as a CUSO, network, or industry, but to have their hands in the bread making. We’ve built tools and features together that our credit unions are now using today or will be using in the future. In many cases, however, the individuals in attendance, although eager to help build and implement solutions, didn’t always have the power at their own credit unions to make change happen.

So when it came time to start thinking about our annual CEO event, I recognized that credit union CEOs have the responsibility of being the intersecting point between what the CUSO should do and what CUs will do with it. Unless CEOs do their job for both sides of this question, we’ll never effectively match solutions with the efforts of CUs in our network. If credit union owners are the heroes credit unions need to survive long term, CEOs represent the owners of our credit union industry, and we need them to take ownership of its success. Not all CEOs need to be active. And the same CEOs don’t need to be active every time. But we need a healthy community so that there is a material group of CEOs active at the right times.

With that in mind, we made the decision to change what was a popular teaching and roundtable event into a more intensive boot camp experience where CEOs won’t just talk about what they want, but will take part in the strategic development of that future. In our case that means helping design new products and services for the future of our credit unions, but the same should apply across the entire credit union industry. Credit union CEOs need to be the heroes we count on to attain the future we want for our industry. Tell me why I’m wrong.

Trusting the work to capture the attention of owners is worth it in today’s credit union world

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Momentum is picking up around the idea of being more aggressive in developing an ownership community as a key credit union strategy and tactic. The more CU professionals see that it takes active owners (pioneers) to start and sustain credit unions, and passive owners (the indifferent) to end them, the more they are seeing active owners as the heroes in their credit union’s story. Add to that the growth of data and demographic tactics in CUs and who knows… maybe categorizing and cultivating members who think and act like owners might even be a long-term trend in CU operations going forward.

Only fly in the ointment? It takes work, and as we know in credit union land these days very few people trust the tact that work and sustained efforts are worth it without a clear ROI. It’s an accounting thing, or maybe an underwriting thing, but it just seems like credit unions want the black and white ledger calculation telling them it’s ok to expend the effort or risk their members’ money on such things.

And here is where it all falls apart. We will spend all kinds of “at-risk member’s money” to attract a potential consumer to our products. We love the high of a purchase, or a “yes” to our service and revenue generating products. We love the black and white accounting of something offered, something taken; there is a buzz in the value exchange. Consumers’ money, attention, affirmation, etc. for our corporate offerings. So why don’t we have something to sell consumers to be owners? Something that gave us all a buzz – something that said the consumer gets it! So we would get it.

We need to craft a different future, even if it is only for the credit union professional’s benefit. Members understand that ownership generally comes with a “transaction”, but the $5 par deposit as an ownership transaction just is not cutting it anymore. It’s forgotten as soon as it’s done; just the cost of opening an account. What then? How do we make ownership real in the minds of members, and beyond a simple one-time exchange? Stock?

Either way, an active ownership community within our overall member community is an asset! That asset has been undermanaged for years if not decades as credit unions have fought to develop their consumer communities. It may take a revolution related to data analytics to shine a light on the demographic and the value of these members, but as more and more CUs face moments when only an “owner” can make the difference, I hope it is not too late to do the work to turn the tide for many of the credit unions who are learning the difference between agents, consumers, and owners! Tell me why I’m wrong!

Check out this exchange between Randy Karnes and Susan Mitchell

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A conversation on innovation, collaboration, and CUSO executive compensation

I recently attended an Underground Collision session at the 2018 NACUSO Network Conference during which Susan Mitchell, CEO of Mitchell, Stankovic & Associates, and I discussed many topics ranging from innovation to CUSO executive compensation. Check out this excerpt from our exchange and be sure to check out the full article at the Underground website.

Sue:  Credit Union Service Organizations were started by credit union leaders as a for-profit, entrepreneurial endeavor to add value to members and generate income! Think of the early days of CO-OP, PSCU, CUSG, CU Direct, Shared Branching and CU*Answers. These collaborative efforts started some of the largest, most successful business ventures in the credit union industry and have returned significant dividends to the original investors, not to mention the impact on credit union owners and charitable causes. Is this true today or have they have become competitive ventures that may distract from the credit union mission?

Randy:  I always think of CUSOs as being started to expand the powers of credit unions. CUSOs created the ability to diversify the cooperative tactics and expand on the idea that if a community owned a cooperative venture then they should have the chance to leverage it for even more value. Why have a one-trick-pony venture? If we can do this, why not that. Cool idea. Now the natural extensions usually come in two flavors – financial service extensions or emulating vendor solutions from non-CU owned entities. But the spirit of the design to DO MORE with your cooperative owners is a cool idea.

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What helps you sleep at night might be the very thing guaranteeing your demise

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Is our trust in the power of the NCUA, our need to be compliant, and our faith in old designs the reasons our results leave us with a shrinking existence?

Recently Chip Filson emailed me wondering where to go next with his series on the NCUA’s management of the Temporary Corporate Credit Union Stabilization Fund and distribution. Good work, strong arguments, and passionate about the need for all of us to push to right the wrong in the way history will record this solution. It most likely has run its course, and Chip was wondering how to sum it up, push it forward, or reconcile all of that work against the dismal response from our industry. And while I have seen some recent angst when CU CEOs compare their refunds to their lost investments for the bailouts, I imagine that this episode will go down to “it sucks, but it’s how the world works.” I thought I might share my response to Chip with you.

“Chip, I hate that I am writing this, but like you I wonder – will your diligence pay off here or is the machinery (NCUA’s propaganda efforts) going to roll on by as the parade watchers (credit union stakeholders) turn their attention to new attractions? There is probably not a good reason to expect action from anyone in the CU industry and a tiring reader base, so who could you appeal to that might want to make a stink about this at a higher level? Government watch dogs, a higher-level player who wants to point out sins of past administrations or solutions, etc. Most likely no one. I believe we should now think more about the future. How can you stage this not to be just about righting the past (NCUA mismanagement), but to be more about changing things today for the future? Who might want to be on the NCUA board and sees this mess as a campaign plank for their election/selection?

I remember the day my father told me that he and my mother did not have control over the world and how it would treat me. It struck me that maybe I was smaller than I ever realized in relation to everyone else around me. I could not appeal directly to the powers that shaped my world; I did not have a voice that was easily heard by those who could ignore my hopes and dreams; I was afloat and the concept of control of my own destiny seemed a child’s fairy tale.

It is possible that the credit union industry will one day face the same “in your face” awakening about much of what is fears and embraces about the NCUA and regulations as a motivator and comfort. It will see that false hopes in the NCUA, our insurances independence, and our government’s backing of cooperatives. Will it crush us or free us? Will we go silent for a lack of thinking anything will change or will we search harder for the right people to influence and push for what we need? Will we be even less likely to push the edges of design or debate with examiners as powerless messengers of a system without representation or will see the need to agree to disagree and act to shape new destinies with our consumer-owners?

Without a doubt the real powers in our industry already understand the false hopes of counting on those who really are not empowered to change things. The winners in our industry already see that “going along to get along” with directors and NCUA messengers fits their short term existence, but there is a potential that one day the rest of the industry will awaken to the idea that compliance with someone else’s ideals for what they should be is only a suggestion, not the iron clad, all empowered design for success. It is time to reach for more, time to jump the track and push for a new regulatory approach.

We need to elect or influence the election of NCUA directors. NCUA director candidates must be able to declare platforms that they believe in, and will work towards. We need an agency that has a CEO who can lead the agency and work with directors. We need a functioning entity with cause, vision, and something more than a governmental employee’s hope for a long-term job and a pension. We need a future where the industry understands the boundaries that both constrain us and foster us – the boundaries that we evolve with an agency willing to be transparent and communicative on par with their expectations of us.

And while much of this seems like a fairy tale’s outline for change, I would rather work on that than suffer working through fooling myself that the current design of the NCUA will ever yield different results.”

Wow! Looking back I managed to vet a whole lot of stuff, include mom and dad’s teachings and fairy tales… but did I say anything that will inspire Chip to push credit union leaders to act differently? Can we change our behaviors in response to recognizing through our faith in these systems we have adopted bad habits that need to change:

  • Over capitulating to external powers
  • Over paying for compliance without searching for not needing to comply–both rules and the peer pressure of “best practices”
  • Put seat warmers on a pedestal without examination, and accept committees as leaders over our vision empowered
  • Over trust group think and under trust their community’s needs – their local membership needs
  • Count on others more than we count on ourselves

I know all of us like to go to sleep thinking that while we sleep the good guys are on duty and through their powers of control we have nothing to worry about, but I am quite sure that we all need to rethink trusting the NCUA’s powers to fix things will suffice. We overpaid for the Corporate Crisis and will for every crisis if we do not. Tell me why I’m wrong.

P.s. Most nights I do not sleep because I know that my world is safe in the hands of those in control, I sleep trusting with faith in the fact that every day members have goals that inspire our efforts, our work, and our hopes. There is freedom in trusting chaos and yet unrealized success.

It’s is not the amount of data you need, it’s what you do with it that matters

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A Q&A about getting started and remembering to share your data

Introduction:  If you haven’t noticed, it seems like every CEO is having to answer a lot of questions about how and when they are going to dive head first into revolutionizing their firms with data analytics efforts. CU*Answers’ Asterisk Intelligence project is getting a lot of attention these days from our allies, competitors, and commentators. From time to time I get asked some questions that might be worth sharing with you all.  Here are a couple from last week.

Q1: What is the minimum amount of data any CU needs to get moving? Is there a magic number for how much data is needed to effectively deliver insight and drive decision-making?

My short answer: the volume of data needed is a variable most valuable to those selling data, not those using it. Right now we need businesses focused on using data as an art form.

The amount of data is not the right question credit unions should be asking themselves at first. It is the intent that organization has towards data that separates those who succeed and those who struggle. I believe that this is one of the reasons that most CUs are so far behind the curve in relation to other industries:

  • They lean towards efficiency over effectiveness
  • Focus is on ROI, black-and-white ledger totals versus ROL (return on learning) as the foundation for what to do next
  • They are slow to trust shifts in norms, and resistant to shades of grey and variations in their accepted rules of thumb

After adopting new intent towards data, the organization must consider their ability to process or refine data and the yield from the work in doing so. Will they act on insight? What is the proper investment for the amount of effort they will put in to refine it and then to act on it? There is gold in them there hills, if you go up there to look. An organization must look at its leaders and see what motivates them to act, and what kind of processes lead to the strongest response. Some teams lead from an income statement or balance sheet and need very little else; some teams lead from their response to board members and very little else; and some teams lead from their response to experts/regulators and little else. How will that change if you decide to drive decisions from data? If you cannot say it will, save the money.

“Randy, you didn’t answer the question.” Well, the amount of data you need depends on the areas of analysis and the different variables they entail. What constitutes a trend? What is the proper age of data? What correlation to your audience specifics do you need? What are you trying to do with the insight – sell something, invest in something, win an argument, predict something, etc.

Remember most CUs just want to record something for compliance’s sake or gain confirmation and earn affirmation. Actually using insight to up their game is farther down the hill. For the average CU today, I wish they would simply excite their owners with trust and access, let their members feel like the data positions themselves as insiders trusted, and stakeholders empowered.

Q2: CU*Answers has set its sights on offering both shared data analytics services and infrastructure and solutions for the “do it yourself” turn key CU teams.  Do you think a product like Analytics Booth will be valuable to both market spaces? Even if my CU started with OnApproach as our foundation?

Without a doubt, because the designers of both shared data analytics and business intelligence teams have the same problems in delivering long term value. First, build the infrastructure and factories that set the foundation for the analysts to do their work and generate value, and second, build a team of analysts and actors to turn insight into realized value and gain. In the end, the insight and intelligence has to move outward as a distributed function to be successful and products like Analytics Booth do just that!

There definitely is a role for Analytics Booth in CUs that go forward with their own solutions. Internal teams are about centralized process management, infrastructure, and controlled project sets in general. They do not often have goals for audience management, distributed processes, engagement, and self-service-self-starter interactions. The systems they build are subsets walled of in networks, and they have long lists of things to do before they go external to the net, planning rooms, and the offices and homes of external stakeholders. In essence, they are not built to exchange insight and data like currency in the beginning. That is Analytics Booth’s primary focus – build trust, leverage insight, reach out to stakeholders and let them contribute. Data is an asset best leveraged for insight and best positioned when many have the chance to look at it.

Note: Internal teams have a lot to do – and invest. It can be overwhelming and demoralizing if they cannot gain traction quick enough with a distributed audience to gain support for continued investment. AB is only one answer to this problem for internal developers. The ASAP (Ask See Act Profit) concept that says data insight must be ACTED on with muscle memory and default to action is another issue Asterisk Intelligence is working on to support the internal development dilemma. Check it out!

What questions might you have about your next steps to go active with a business intelligence or data analytics effort? Let me know.

Is Amazon a disruptor or a distraction?

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Stop worrying about “threats” and focus on our real advantages

The other day a credit union CEO sent me an article about Amazon potentially working on offering checking accounts to its customers. He wondered: “Why do credit unions ‘suck’ at telling our story? Is this an industry issue, local issue, or generational issue?” My take on this potential disruptor…

  1. Amazon is great at drawing attention to itself as a potential disruptor (e.g. drone delivery!)
  2. Amazon is great at attracting capital and endorsement alliances – health care insurance, etc.
  3. Amazon is great at redrawing boundaries where there are no boundaries – the internet, low regulation, and virtual relationship spaces.

So, the article is their MO and just another chance to stir the pot. Not necessarily unique, just a nice moment to grab some attention and see what falls out on the ground. I would bet the first thing is some large international banks that would like to have Amazon front a lot of checking relationships…maybe even the one that is involved in the health Insurance play.

As to telling our story… our story is LOCAL in 99% of the cases. Some of the emerging 10s of billions of dollars sized firms have other aspirations and opportunities, but for the rest, LOCAL and its genuine affinity is the only competitive advantage that we can leverage. What makes it genuine is the cooperative ownership structures and intent. And LOCAL can be an impactful story locally, but never on par with the reach of OPEN MARKET players. It is what it is, whether we “suck” is a matter of opinion, but judgement should be based on how we tell our stories locally against other locally leveraged players. Amazon can claim local consumer prowess, but not local genuine designs – thus its issues with sales taxes, and other competitive impacts on local players.

What is genuine about your local advantages, intent, and practices beyond just consumer ideas? How can you make those advantages bigger, sincerer, and counted on in the minds of every stakeholder you have – including you? Confidence in these needs to shine through as calm, indifferent to games you cannot play or change, and through your default responses. You live and die by your trust in the duality of your local community both as consumers and owners of their own designs. Win or lose… and how can you lose if you follow them as much as they follow you?

Remember that some people in our industry overplay the idea that our movement is not a local one, and therefore burn up a lot of resources and break hearts when they organize forgetting the need for a proper tone of a large local movement. We need local as an affinity, local as respecting autonomy, and local as seeing that it is owned by consumer communities versus an open market affinity, too much respect for group think, and thinking agents decide.

It’s not crowd control that we need, it is crowd inspiration we need to move the ball for individuals wherever they are. What you are doing is far more important that what the movement hopes to inspire. Do the work, we have a movement—worry about the movement more than the work, we have nothing.

I like the book “The Subtle Art of Not Giving a F#&%” for this reason… there are just a lot of things outside of what we do that has little bearing on what we can do. Tell me why I’m wrong!

Will you notice if there’s a bump in the road?

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Thinking about how we respond to negative trends

Every quarter, we write a report to stockholders, the State of Michigan, and the NCUA (we file every 90 days and have since the early/mid 1990s) detailing our quarterly financials. One of those things that gets filed in a room or can like CTRs… (we flatter ourselves) — just there in case someone ever gets interested. In our latest, I wrote a tongue-in-cheek article pointing out how we had somewhat embarrassingly missed the mark on our budgeted net income for the first quarter of our 2018 fiscal year. (We still had our second best start to any fiscal year in our history, but fell short of our projections.)

It’s been many years since I’ve had to write a report where we were off plan at the end of a quarter. And I was interested to see–would anybody notice? So far… not really. Like many firms, CU*Answers has ridden a very long winning curve up as a vendor for the CU industry and seldom publicly has to admit that it ever worries about that streak. And since the firms that are now gone from view are silent, all we hear about is streaks of good luck for the most part. We know the industry is consolidating; we know the industry is polarizing to the point where those at either end can see no relevance in calling each other peers any longer; we know that it is more likely that our industry will be redefined by others (competition, regulators, or those simply unaware of who we are and were) instead of experienced CU architects. We know a lot….but we act so little on big things.

So on a day where I am filing a tongue-in-cheek quarterly analysis of a blimp on the radar, I wonder what I would write if losing/struggling was the streak? Multiple quarters where our plan could not be reached, where our goals seemed less than bright, or where we fell short of expectations that extended our futures. What would I write? What would I change? What would I push to engage?

Quietly I wish I had kept the phone numbers and emails of CEOs that are now gone from view. Ex-CEOs that could tell me what they had wished they had done when they faced downward curves on the way to the end. I worry that lessons lost and archived outside our industry now are what is needed. What did we miss when we justified the NCUA or regulators actions to end an organization? What did we miss when no owners really dug into a vote to end a charter? What did we miss when the life-cycles of leaders and volunteers were more important than CUs needing young blood? What did we miss when we followed models based on scale that left local communities and individuals on the sidelines? What did we miss that are the keys to turning a streak back towards winning?

Some might say we missed nothing, we witnessed progress and the natural march towards an industry’s maturation. But that sounds like short term winners talking to me. Tell me why I’m wrong.

Crafting approaches to how you delegate is the key to how you respond to your board

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Finding your comfort zone with “teach, negotiate, and tell” ratios may be the key to every interaction

I was recently working with two new CEOs and discussing the art of both building teams and of reporting to the board of directors. We got started on the idea of using a formula to govern your interactions with each. For my staff, I use the following: 80% Affirmation, 10% Adjustment, and 10% Reversal/Rejection. When presenting to the board: 60% what we’ve done, 20% what we’re doing, and 20% what we’re considering.

Finding the right tone and approach to this is key to your role as CEO. Strict adherence to this way of thinking is not the objective here; rather you should always keep these ratios in your head as you delegate assignments and work with your board to build a better organization. Team members need the feeling that you have truly entrusted them with the assignment and are relying on their skill set. Board members similarly need to be involved and trusted. When you read through these, relate them to the concept of TNT: Teach, Negotiate, Tell.

Working with your staff

This ratio is about building trust and confidence in your teams, and continuing to develop them over time. Veering away can be damaging both to the speed at which you’re developing products and services (by making too many adjustments) and to the relationship you have with your team (by rejecting their ideas too often).

80% Affirmation

This comes down to trust. If you have delegated to the right person and communicated the objective well, the variance in their outcomes will be slight or minimal in comparison to your expectations for the assignment. Remember leading is adjusting and if the team member is 5-10 degrees off your track that adjustment is generally small; pace is the key and constantly forcing adjustments for slight differences will slow the machinery. Leaders need great instincts and speed to adjustment. Affirmation is letting the teammate Tell you; receiving their tell interaction in the right way builds trust and confidence in their ability to make calls.

10% Adjustment

When the team member is on the right track, but has veered off to the side a bit too far, use a Negotiate/Teach approach to make the adjustments necessary to reach a consensus on the assignment’s direction. 10% Adjustment is the act of finding the win-win in the move forward. You’re reassuring the staff of your confidence in them to make the right decisions, but working with them to ensure the final product isn’t too far removed from the original idea.

10% Reversal/Rejection

While it might feel like the formal power play, work to avoid that sense. Reversal/Rejection is simply your Tell/Teach message to them. You’re still confident in their abilities, but you’re letting them know they’re off the mark and this is your opportunity to communicate where they can get back on track—build a two-way street with teammates. Just don’t forget the ratio—if you’re rejecting your teams more than 10% of the time, you will damage the relationship and make them feel as though you’ve lost confidence in them. If you feel like you are rejecting too much, consider how you’re communicating those expectations to the individual before they get started.

6-2-2 for presenting to the board

Do you give enough facts and opinions to let the board get to know you and trust your evaluation of things? Do you allow for the TNT (Teach, Negotiate, Tell) in the evaluation of your delivery of opinion and task? And are you delivering the right percentages of Accomplished, Working on It, and Thinking About It issues in your reports, presentations, and agendas? They must learn your approach and you must trust their feedback—use TNT to find the right balance.

60% What We’ve Done

A key role for a board is to evaluate and confirm work done, and the correctness of the work on the path to the organization’s success. Does the firm execute on track with the firm’s plans, philosophy, and culture? Can it be trusted and will you, the leader, prove it?! It’s easy to get excited about what we’re doing now and what we’re dreaming of, but it’s important to reflect on our accomplishments and to affirm our teams’ successes. Allow your board to become too focused on what’s next, and they won’t stop to appreciate the hard work it took to get there.

20% What We’re Doing

The next thing I focus on is giving the board the foundation that they are engaged and in the mix of things. Do not embarrass boards by letting them be surprised by initiatives/efforts undisclosed; they drive with you, not in the back seat. Share openly the projects you’re working on and the work that’s going into it. Let them in on the process.

20% What We’re Considering

The next role I focus on is giving the board the respect of heeding their advice and input ahead of the game. This is the art of asking what they would consider doing and avoiding the blank page requests that make committees uncomfortable and ineffective. You are listening all the time to triage issues for the planning page, do not have moments where you make them fill it out.

Whether you’re dealing with staff or your boards, it’s a good idea to have ratios like these in your mind. When you don’t stop to think about how you’re interacting with each, it can be easy to let those interactions get away from you. Build trust with both your staff and your board by keeping these in mind. If you have ratios of your own that you use, let me know. Tell me why I’m wrong!