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Competency Framework for Directors

Tuesday 9 January 2024

Credit Union Director Competency Framework

INVOLVED AND ACTIVE BOARDS ensure the delivery of excellent services by the credit unions. To stay organised and focused, the board needs to work on the future direction of the credit union, providing the absolutely essential leadership members expect. At the minimum, policies should be in place which defines the results desired; set the boundaries for acceptable organisation activities, establish the board-management relationship and articulate the board’s process. In this way, the board becomes a strong partner with management in assuring success of the credit union.

In addition to legal and general responsibilities, credit union directors should display a level of competency that demonstrates their ability to govern the credit union in the best interests of members. This competency framework aims to outline the key areas for development in an individual in a governing role in the credit union.

Area	Demonstrated by
Strategic thinking: the ability to visualise near and distant future conditions and develop appropriate organisational response	Focused on policy issues, not day to day management or operations Understands and respects the roles of the Board and the CEO Regularly evaluates progress toward strategic goals Contributes towards formulating the credit union’s objectives. Helps to establish objectives and policies for facilities and services of the credit union. Able to appraise the adequacy of services and facilities of the credit union and to analyse proposed changes and their implications for long-term financing and profitability Interprets and analyses financial statements and financial information and to assess the financial viability of the organisation sufficiently to make sound decisions
Leadership: the ability to take responsibility for accomplishing the desired objectives.	Understands well the aims and objectives of the credit union Knows and understands the organisational structure of the credit union Actively seeks the information needed to carry out duties Realises that, except functioning as part of the board or a board committee, has no more authority than any other member. Has good understanding of the laws and regulations governing credit unions Has a good understanding of roles and responsibilities Encourages diversity in skills and culture on the board Never uses information obtained in their position for personal gain Understands that once the board makes a decision or sets a policy, individual board members act in a way that is consistent with that collective decision even if they weren’t in favour of it. Understands the need for succession planning in ensuring the continuity in the credit union by ensuring that a capable and effective board of directors always exists
Business skills: the ability to effectively perform the function of a credit union director.	Is able to plan, prepare and participate to maximise group participation in board decisions. Remains involved and interested in board meetings Understands and follows basic meeting procedures Recognises the roles of the board and manager and to work within this. Participates openly at meetings by asking appropriate questions and offering constructive comments. Makes sure attendance is regular and punctual Is prepared to stand alone if necessary in order to bring issues to the attention of fellow board members. Aims to resolve conflicts or tensions satisfactorily Is able to represent the credit union at public functions when asked
Personal Impact: having sensitivity to the impact behavior has on others and the ability to develop an understanding of other people’s feelings, needs and concerns	Recognises the impact of own words, actions and behaviour Manages behaviour appropriately to the situation in hand Deals with sensitive situations diplomatically and in a caring way Listens and considers the views of others Puts themselves in others shoes and understand how they feel Gets to know people and understand their motives and behaviours Has a style that wins commitment and loyalty from others Respects and appreciate individual and cultural differences Shares knowledge and skills generously Acts always with integrity
Team work: the ability to be a good team player, developing effective supporting relationships with fellow team members	Relates well to other team members Encourages others to think of themselves as a team Balances personal goals with that of the team Treats others with dignity and respect Shares knowledge and skills with other team members Effectively interacts with others at all levels developing a wide range of contacts Helps and assists other credit unions were possible
Flexibility: a willingness to adapt thinking and behaviour to suit different situations.	Sees the need to change when circumstances demand it Accepts that any role in the credit union is one of continuous change Willingly accepts new projects and opportunities Looks at issues from different angles Is keen to develop new approached to work Sees and accept the relevance of others views Questions own thinking when necessary Stays objective and do the right thing for the credit union Assists others in accepting change
Developing others: recognizing the capability of others within the credit union and being able to create an open environment in which to learn and develop	Agrees objectives with others Helps others to evaluate their own performance through frank and considerate discussion Provides effective feedback Recognises the importance of your role in the development of others Acts as a positive role model Makes time to coach and mentor others Encourages team work and collaboration Creates diverse, creative and talented teams Remains supportive to colleagues
Commitment to credit union values: a willingness to ensure that behavior reflects the culture and values of the credit union.	Believes in the credit union and look for opportunities to promote it to others Presents a consistent and positive image of the credit union Ensures personal behavior upholds the image of the credit union Accepts collective responsibility irrespective of your viewpoint Acts as a role model in reflecting credit union values Respects the confidentiality of members Understands and support the needs of all members of the credit union