Orientation for New Board Members

Orientation for New Board Members

Phil Kenkel

Bill Fitzwater Cooperative Chair

Spring is the time of year for cooperative annual meetings and the election of new board members. Every new board member deserves an effective orientation program. In today’s marketplace, the pressure is on the board to make every meeting count. A new director needs to hit the ground running. Leading a multimillion-dollar cooperative corporation is serious business.”In order to be effective, board members need to share the cooperative’s vision, understand their role and responsibilities, work as a team, monitor the cooperative’s performance, make timely decisions and ask the right questions. An orientation program prepares new directors to function effectively at their first board meeting and speeds their time to full effectiveness.

A board orientation program should include an overview of the roles and responsibilities of the board of directors and the distinction between the board and manager roles. OSU Fact Sheet #977 “Director Roles and Responsibilities” is a good resource on this topic. The orientation should review the cooperatives articles of incorporation and bylaws. The new board member should be provided a copy of these important documents along with a copy of the cooperative’s current policies. New directors need to understand their legal responsibilities. This would include the legal authority of the board, binding actions by the board, notice of meetings, member access to records, duties and liabilities and an understanding of the business judgment rule. These and other topics are covered in OSU Fact Sheet 978 “Directors Legal Handbook”.

An orientation program should also help a new board member work effectively as a team member. A board member must be able to read and understand the cooperative’s financial statements and budgets, contribute to an effective meeting. OSU Fact Sheets #979 “Effective Decision Making in the Board Room”, #980 “Effective Board Meetings #986 “Parliamentary Procedure in the Board Room”, #996 “The Importance of Board Minutes” and #997 “Financial Performance Analysis for Directors provide good background information on these important topics.

Board orientation can be accomplished in several ways. Some cooperatives hold a formal orientation session. Others pair new directors with experienced directors. Some cooperatives involve the entire board in new member orientation. The Oklahoma Credential Cooperative Director (OCCD) program provides in-depth education on all of these topics. Every cooperative should make a commitment to have new directors, and every director, complete the credentialed training.

Investing in board development strengthens the board and individual directors. An effective board contributes to a thriving co-op. If you would like more information on developing a board orientation program, or if I can assist you in delivering a program, give me a call.

4-14-2010