Board Training Drives Better Outcomes for Cooperatives
While each Board member brings their own ideas, perspectives and knowledge to the table, it is important to ensure all Board members have the background knowledge needed to make critical business decisions.
In her article “The Importance of Board Governance Training”, Theresa Sintetos speaks of the importance of having shared knowledge across Board members.
Sintetos points to several benefits of Board training:
- Gain knowledge of current governance issues
- Develop ability to candidly address conversations on difficult issues
- Create a shared understanding among board members
- Reduce personal and political agendas through shared learning
- Bring increased focus on business needs
- Fully understand the Board’s role in serving the cooperative/organization
Formal Board Training
When identifying training needs, it is helpful to understand the skills gaps of your Board members first. Often, Boards of Directors will go through a self-evaluation process. This helps them identify topics of interest that would improve their ability to govern.
Once topics of interest are identified, Boards can find a training solution that meets their needs.
There are a variety of vendors that offer board development and training resources. For instance, FCCS offers Board and Peer Evaluation tools and support for Co-op Boards.
Examples of Board training topics include:
- Strategic Planning and SWOT Analysis
- Goal Setting
- Relationship Building and Board Dynamics
- Communication Skills
- Financial Acumen and Trends
- Managing Risk
- CEO Succession and Talent Management
- Executive Compensation
Informal Board Gatherings
Formal training is important, however don’t forget the importance of Board collaboration. Often Board meetings have filled agendas, leaving little time for informal interactions as a team.
Cooperatives can create a stronger board by providing external activities for Board members. These activities help build community and relationships that are used both in and outside of the Boardroom.
In addition to Board members getting to know each other, there are opportunities to gain knowledge through informal networking, as well as more formal Board mentorships.
Board Mentoring Programs
Mentoring partnerships leverage the knowledge sharing between a variety of skill sets.
- Experts in different areas of the business
- New and long-tenured Board members
- Different background or geographic locations
Effective mentoring programs are structured. Ways to build structure for Board members include:
- Clear description of roles and mentoring expectations
- Defined time commitment
- Compatible personalities when matched
- Documents that guide conversations and goal setting for the relationship
- Opportunities for individuals to connect and build relationship
Board Training from Foundations Consulting
Foundations Consulting works with co-op Boards across the country and specializes in Board trainings focused on CEO performance and compensation.
Through engaging dialogue and interactive case studies, we provide Board members with information on performance and compensation to drive business decisions and positively impact employee engagement and retention.
Our Board trainings focus on the following areas:
- Establishing meaningful goals
- Evaluating CEO performance
- Understanding Pay Components:
- Base Salary
- Short- and Long-Term Incentives
- Bonuses
- Retention Plans
- Nonqualified Deferred Compensation
Contact Beth Ostrem or visit our website to learn more about our Board Training.
