Building the Perfect Credit Union Board Package: Expert Insights from Todd Miller
Former NCUA veteran Todd Miller recently joined the With Flying Colors podcast to share his expertise on creating effective board packages. With 34 years of regulatory experience, including roles as an examiner, capital market specialist, and director of special actions, Miller offered valuable insights into what makes a board package both effective for directors and satisfactory for regulators.
The Foundation of Good Board Reporting
At its core, Miller emphasizes that board packages should demonstrate management's compliance with:
• Business plans and strategies
• Board policies
• Risk appetite standards
• Regulatory requirements
The challenge lies in striking the right balance between providing enough information for informed decision-making while avoiding information overload that could lead to micromanagement or confusion.
Quantitative Reports: Making Numbers Tell the Story
Miller recommends including several key components in the quantitative section:
• Key Performance Indicators (KPIs)
• Key Risk Indicators (KRIs)
• Financial reports and statements
• Budget tracking and variances
• Strategic plan progress metrics
• Peer comparison data
The Art of Dashboard Design
Rather than overwhelming directors with raw data, Miller advocates for well-designed dashboard reports that:
• Present information consistently across all departments
• Use standardized color coding (e.g., red/yellow/green for variances)
• Maintain consistent data ordering (e.g., oldest to newest)
• Provide clear comparisons to goals and peers
• Make detailed data available but not prominent
Qualitative Reporting: Adding Context and Insight
Numbers alone don't tell the whole story. Effective qualitative reports should:
• Explain significant variances from plans
• Highlight emerging risks and opportunities
• Summarize key committee activities
• Provide context for important decisions
• Address material risks directly and clearly
Real-World Examples
Miller shared several illustrative examples, including:
• A credit union with 52 branches where 39 were losing money, but this crucial information wasn't clearly communicated to the board
• Another institution that effectively tracked branch performance against clear profitability timelines and had specific action plans for underperforming locations
• A case where a member's complaint over a small CD renewal issue led to the withdrawal of $4 million in deposits because the board wasn't informed of the member's total relationship
Common Pitfalls to Avoid
Based on Miller's experience, credit unions should watch out for:
• Information overload that obscures important issues
• Inconsistent formatting across different reports
• Burying significant risks in detailed appendices
• Failing to provide context for key decisions
• Including outdated or unnecessary reports
• Not disclosing material information clearly
Best Practices for Success
To create effective board packages, Miller recommends:
• Maintaining consistent reporting formats
• Using clear, standardized indicators
• Making detailed data available but not prominent
• Conducting regular reviews of package contents
• Removing outdated or unnecessary reports
• Focusing on strategic direction and material risks
The Role of Technology
Modern board portals and software platforms have made it easier to:
• Provide secure access to detailed information
• Maintain consistent formatting
• Create interactive dashboards
• Archive historical data
• Enable efficient updates and distribution
Looking Forward
Miller emphasizes that board packages should help directors focus on:
• Strategic direction and opportunities
• Material risks and challenges
• Emerging industry trends
• Member needs and satisfaction
• Competitive positioning
Final Thoughts
The perfect board package doesn't exist because every credit union has unique needs based on its size, complexity, and culture. However, following these guidelines can help create reports that enable better decision-making while satisfying regulatory requirements.
Remember Miller's key summary points:
• Present data that helps board members make good decisions
• Provide clear understanding of current situation
• Keep focus on future actions
• Balance detail with clarity
• Maintain consistency in reporting structure
By following these principles, credit unions can create board packages that not only satisfy regulatory requirements but also enable their boards to provide effective oversight and strategic direction.
About the Author: This article is based on Todd Miller's appearance on the With Flying Colors podcast, hosted by Mark Treichel. Miller spent 34 years with NCUA in various roles and now consults with credit unions on regulatory and operational matters.