Using Board Software Transforms the Co-op Landscape

co-op electric board software

Utility cooperatives (co-ops) sometimes get a bad rap for using outdated processes. Many of them have been around for more than a century, so it’s no surprise that standards of procedure have been honed and crafted throughout the years.

Technology and infrastructure are constantly evolving and growing; however, boardroom dynamics look largely the same as they did twenty years ago.

Board responsibilities are increasing for every industry, so the pressure to ensure that co-ops succeed has fallen squarely on the shoulders of directors.

Board meeting software presents many unique benefits to boards of directors in the co-op field. First and foremost, it establishes easy access to important board information.

While traditional, paper-based boards are confined to the information provided for a specific meeting, directors using board software can instantly access everything from past meeting materials to strategic plans, policy manuals, orientation materials, audit reports, and more.
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How to Prepare for a Board Meeting

preparing board meeting

At one point or another, you’ve probably heard some version of this saying: A team can only be as strong as its weakest player.

Each individual member must be expected to thoroughly prepare for a board meeting or else the strength of the boardroom will suffer.

Here are some tips on how to prepare for a board meeting:

Review bylaws and meeting protocol

If you’re still new to board membership, it doesn’t hurt to review your board’s bylaws and typical meeting procedures. Make sure that you understand when you’ll have opportunities to bring topics up and when you’ll be expected to cast votes.

Some boards rely on an extremely intricate system while others operate more loosely. If you don’t understand the system, how will you be able to adequately prepare for a board meeting?
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The Importance of a Boardroom Thanksgiving

boardroom Thanksgiving

This week, as the country turns its attention toward gratefulness and generosity, it seems only appropriate to do the same when discussing boardroom topics.

A board of directors involves an intricate web of relationships, so it’s important to pause to appreciate how each of those interactions strengthens corporate governance for an organization.

Thanking Board Administrative Staff

Every business leader understands the value of exceptional assistance. In fact, the best administrators help leaders take their effectiveness to the next level. Board admins spend a lot of time in the background of the board process, but the truth is that they are the principal organizers for most board-related activities.

Not to mention, keeping a collection of busy board members satisfied and plugged into a structured communication system is no small task.
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Technology Makes for Better Banking Boards

better banking boards

While many industries have embraced innovative ideas regarding boardroom leadership, the financial services (FS) industry still has a reputation for being set in its ways.

Intriguingly, banking board members have faced what are arguably some of the most unique and daunting challenges over the past two decades.

The rise of the Internet-age has brought about major changes in how we bank as well as how we keep our accounts secure. As PwC’s most recent financial services survey explains, “Boards face a growing set of risks, opportunities, and competitive challenges from technology.

New customer-facing options, such as mobile wallets and social media, hold promise to boost revenues, while better back-office systems can improve efficiency. FinTech competitors are intruding on traditional FS space, while cybersecurity is demanding more attention.”

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Effectively Vetting Board Candidates

effectively vetting board candidates

Company culture is extremely important to the success of any major company, but what about boardroom culture? How do board members ensure that incoming directors are the right fit for their team moving forward?

It all comes down to vetting the candidate and doing it well. Board members must go the extra mile to determine whether a nominee has what it takes to help the company succeed.

Here are a few suggestions for the vetting process:

Don’t be afraid to make them “tryout”

You read that right. Professional sports teams make potential new players tryout for their position, so why not extend that practice into the corporate world? Create a fake scenario in which the board member will have to make a difficult choice or confront a roadblock; use this exercise as a way to measure their ability to respond to challenges.

The decision they ultimately make in this trial is less important than the way in which they make it. Look for individuals who are willing to ask tough questions or who reach out for assistance when they feel like they need more expertise.
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Board Resignation: When and How?

board resignationThe fact of the matter is that board membership isn’t a lifelong commitment. Sure, some directors spend decades on a particular board, but others might serve happily for a couple of years before stepping down to pursue other goals.

There’s no right or wrong amount of time for board service; it all comes down to the individual. There are, however, some ways to know when it might be your time to move on.

You simply don’t have the time or the energy

These days, board service comes with some serious obligations. Board members should be thoughtful when deciding whether or not they should sign on for another year of service.

Personal events can come up as well as other business accountabilities. It’s always better to admit that you can’t keep up with the responsibilities than to be a lackluster director.

You disagree with a major operational decision

First and foremost, disagreements happen on boards; it’s just the nature of the role. Before you decide to jump ship based on a disagreement, be sure that it’s the right choice for the organization. If your differing opinion could be of assistance moving forward, that might be reason enough to stay and keep playing devil’s advocate.

It’s a tough choice to make, but if you feel like your divergence from the group will hinder the organization’s growth or future, it’s acceptable to confront that reality and politely resign.
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Healthcare Boards: The Widening Role of the Compensation Committee

healthcare boards

In recent years, executive compensation has become a hot button topic in both the for-profit and nonprofit realms. Healthcare boards of directors have come under fire for allowing high-level execs to take home high yearly earnings for work that has been deemed lackluster.

The topic has become so controversial that the Securities and Exchange Commission recently issued its first ever guidelines for calculating executive pay ratios.

Board members all around the country are feeling the pressure to present salaries that can be legitimized through performance evaluations and overall company success.

For the healthcare field, in particular, executive pay has become highly scrutinized because of the public’s perception of its link to rising medical costs. In fact, activists in both Arizona and California recently tried to pass Hospital Executive Compensation Acts that would limit the salaries of hospital CEOs in those states.

The initiative did not make it onto either of the ballots for the 2016 election this month, but the activist impulse is not likely to fade away. Several other states are also dealing with backlash; “In Ohio, an ABC5 investigation found hospital CEOs earn up to $4 million annually, and often earn bonuses of up to 40 percent of their salary.

Critics in both states say these numbers are particularly concerning among non-profit hospitals, where CEOs earn more despite more inpatient care complications and higher expenses.”

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Sarbanes-Oxley Is Still Shaping the Modern Boardroom

We’re 14 years removed from the Sarbanes-Oxley Act, but its influence is constantly shaping the modern boardroom. In the wake of the Enron scandal—what has now become the poster child for corporate greed and fraud—American legislators became abruptly aware that the corporate governance landscape needed some thoughtful regulation.
Sarbanes-Oxley Is Still Shaping the Modern Boardroom

CEOs and CFOs had become increasingly powerful in the corporate structure. Meanwhile, boards (the “independent” backbone of the system) were more like figureheads.

Although Sarbanes-Oxley (SOX) didn’t present any seemingly massive changes to corporate structure, it did force companies to pay closer attention to financial details, and it demanded more oversight from board members. As Inside Counsel writer, Melissa Maleske, writes, “SOX led to greater internal control of financial reporting, and increased expertise and independence among more-focused boards, committees and directors.

It imposed new reporting, audit, disclosure and ethics requirements, and created internal reporting and whistleblower structures upon which the Dodd-Frank Wall Street Reform and Consumer Protection Act has built.”

SOX also helped re-situate the relationship between management and board members; it affirmed that management serves at the will of the board and not the other way around.
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The Dangers of Sending Board Documents Via Email

The Dangers of Sending Board Documents Via Email

Thanks to a leaked board document via email that was originally sent in May of this year, the world is now aware of 14 different companies that Salesforce was considering for acquisition.

The email, which came from former Secretary of State and current Salesforce board member Colin Powell, also included a 60-slide presentation detailing these potential acquisitions.

This isn’t the first time that a high-powered board member’s email has been targeted. Emails between the CEO of Snapchat and his board members were leaked back in 2014—some of which were considered highly embarrassing for the very young founder and CEO. In 2013, a Google board member’s email account was also hacked.

There are many more examples in recent years.
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Higher Education Boards Move From Ceremonial to Challenging

Higher Education Boards Move From Ceremonial to Challenging

Historically speaking, many higher education boards have been viewed more as symbolic leadership and less as entities that are shaping the future of education. The trustees often play the role of donor, booster, or simply cheerleader for the university they serve.

As governance demands continue to grow for all boards of directors, though, higher education boards have entered the spotlight on more than a few occasions.

Several recent reports have called for more investment from board of trustee members. In fact, the National Commission on College and University Board Governance insisted, “Boards can no longer serve as rubber stamps for university presidents.”

Former Tennessee Governor (and chairman of the commission) explains, “Many meetings of trustees or regents follow the same pattern: The president gives his presentation, you have some more presentations about all the wonderful things people are doing, you have lunch, and it’s time to go home. You can get away with that when nothing is changing, but the world has changed.

The boardroom needs to move from being a country club to a place where they can work.”
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