BY ANN FOSTER THELEN
The role of an electric cooperative board extends far beyond making decisions in a meeting room. It requires forward-thinking strategies, local advocacy, active engagement and a commitment to ongoing improvement. Co-op directors continuously participate in education and training opportunities, which enhance their skills and strengthen their knowledge of a complex industry.
At the Iowa Association of Electric Cooperatives’ recent annual meeting, Richard Fagerlin of Peak Solutions and Dr. Keri Jacobs from the University of Missouri-Columbia explored the essential qualities of high-performing cooperative boards and the steps directors take to ensure their long-term success. Hundreds of directors from Iowa’s electric cooperatives attended the meeting.
Understanding the big picture
Fagerlin and Jacobs emphasized that effective boards do more than meet and make decisions. They ensure the sustainability of their cooperative and prepare for future challenges. A key theme of their presentation was “future-proofing” the board – ensuring that today’s decisions position the cooperative for long-term success.
To serve the needs of electric co-ops and the member-consumers they serve – today and in the future – electric cooperative boards ask:
- What does our cooperative need from its board today?
- How can we best position ourselves for future leadership?
- How do we ensure a smooth transition when current board members step down?
Seven habits of effective board members
Fagerlin and Jacobs highlighted several common challenges boards face and seven ways board members are most effective in serving member-consumers’ local needs.
1. Knowing their job. Board members understand their responsibilities before, during and after meetings. This includes preparing adequately, staying engaged, and recognizing the difference between operational and strategic roles.
2. Finding the right balance of engagement. Some directors may want to overreach and micromanage staff, while others leave decision-making to a few dominant voices. Striking the right balance is critical to effective leadership.
3. Ensuring equal participation. Effective boards ensure that all members contribute to discussions. When one or two individuals dominate conversations, the board loses valuable perspectives and diversity of thought.
4. Prioritizing co-op needs. Directors prioritize the cooperative’s interests over personal motivations. An effective board remains united in its commitment to the organization’s long-term success.
5. Passing the torch. Board members must recognize when it’s time to step aside for new leadership. Bringing in fresh perspectives while maintaining institutional knowledge is fundamental to the cooperative business model.
6. Maintaining confidentiality. Board members understand what can and cannot be shared outside the boardroom. Ensuring consistent messaging strengthens trust within the cooperative and the broader membership.
7. Valuing diverse opinions. Strong boards avoid the assumption that “everyone thinks like me” and foster productive discussions. The best boards value diverse opinions and encourage open dialogue.
Ensuring long-term success
One of the central themes of the discussion was the need to future-proof the board. This means taking proactive steps to ensure the board evolves alongside the cooperative and the industry.
Some of the key strategies electric cooperatives take to future-proof their boards include:
- Regular board assessments. Evaluating the board’s strengths and areas for improvement.
- Director development. Providing ongoing education and training opportunities.
- Succession planning. Identifying and mentoring future board members to ensure smooth transitions.
- Engaging in strategic discussions. Moving beyond day-to-day operations and focusing on long-term goals and sustainability.
The power of good governance
Governance plays a crucial role in board effectiveness. Fagerlin and Jacobs distinguished between Big G Governance (formal structures, bylaws, and processes) and Little G Governance (culture, behavior and interpersonal dynamics). While having sound policies and procedures in place is essential, the board’s culture and communication style can make or break its effectiveness.
For instance, agenda setting plays a key role in board productivity. Boards strive to make agendas that allow for meaningful strategic discussions. Balancing high-level strategy with operational details prevents boards from getting stuck in the weeds.
The board and CEO relationship
The relationship between the board and the cooperative’s CEO or general manager is vital to success. The board’s role is to provide advice and accountability rather than micromanage operations. Future-proofing means boards position themselves as supportive partners for leadership rather than obstacles to progress.
One emerging challenge is the governance knowledge gap – the increasing complexity of electric cooperative management versus the time board members have available to stay informed. While cooperative managers work full-time in the industry, directors often serve on a part-time basis. To bridge this gap, directors commit to continuous learning and strategic thinking.
Leading the cooperative of the future
The success of cooperatives depends on strong, well-functioning boards that adapt to changing times. By focusing on purpose, process and performance, cooperative boards ensure they remain effective and future-proofed for the challenges ahead.
Fagerlin and Jacobs emphasized that board leadership is a journey, not a destination. The best boards never stop learning, growing and adapting to meet the needs of their cooperative and its members. With the right mindset and commitment to excellence, today’s boards lay the foundation for a thriving, sustainable future.
Ann Foster Thelen is the editor of Iowa Electric Cooperative Living magazine.
