In my last post I outlined a scenario of a credit union board of directors and the actions that they took in regards to a merger. In this post I am outlining how I would have approached the situation if I had been a board member. I am not saying that this post is the correct or only approach to the situation.

 When the credit union board decided to pursue a merger it has a responsibility to the membership to act in a prudent manner and identify the candidate that will be the best overall fit.

 As a board member I would have recommended that the credit union draft an RFP to send to those credit unions that had approached the board and any other credit unions identified as viable candidates for a potential merger. At the same time a communication would go out to staff and the membership as to what the board is doing and the rationale for it. Feedback from the membership should be encouraged as part of the communication.

 Once the responses were received, then a grading system would be used to identify the three most viable candidates for a merger. The three credit unions would then be invited to do a full blown presentation to the board and an ad-hoc group of members. Again, utilizing a grading system the board with input from the ad-hoc group of members would select the successful candidate for the Letter of Intent signing.

 Another communication would then go out to the members outlining the entire process and the reasons for the selection and emphasizing that the Letter of Intent does not guarantee that a merger would be taking place. It should also outline the next steps in the process.

 In my opinion, this approach would demonstrate due diligence on behalf of the board and not mislead, whether intentionally or unintentionally, the membership as to what is happening.

 What approach would you have used as a board member?

About caseywheeler

My interests include: Model trains, Reading, Genealogy, New York Yankees and helping organizations be successful.
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