Director certification plan: new directions for NRECA director training.

• Author: Mason, Bob
• Position: National Rural Electric Cooperative Association program

A RICH HISTORY

Together, NRECA and its member systems have been engaged in the education process since 1953. With large numbers of directors serving on system boards NRECA has served this unique market with ever changing course work focusing on educating directors on the issues of an ever-changing industry. The speed with which change is occurring today is unprecedented in our history. It requires that the director education process respond with new and innovative methods to ensure that cooperative leadership have the skills and competencies requisite to successful functioning in a highly competitive industry future.

CHANGING NEEDS

Each year more than 350 new directors enter the cooperative family and take on the challenges of guiding their system into the competitive future; a future which demands that utilities, including cooperatives, think and function like businesses. These men and women are looking to their systems and NRECA to support them in understanding the electric utility business. Existing directors must also continue the education process. The "Rules-of-the-Road" in the electric business are rapidly changing. "Cost Plus" retail rate-making giving way to "Price Cap" and "Market-based" electric pricing; open access to generation by large-loads; potential for retail wheeling legislation placing huge dollar investments in jeopardy of becoming "Stranded;" are but a few of the major issues of which directors must be knowledgeable.

THE CERTIFICATE PROCESS

The existing process for educating our directors yields a certificate of attendance for the completion of six required core courses and three credits of electives. Directors who pursue this certificate will likely do so within the first two years of board service and will complete the process in about six to seven years. But, only 25% of our board members ever take on the task. And, while more individual directors are attending more individual courses today than at any time in the history of the cooperative movement, they are placing less emphasis on the existing core certificate courses and more emphasis on attending courses that focus on the current topics of the industry.

The nations' financial houses, rating agencies, legislators and regulators are calling for increased professionalism within the leadership of the organizations that they analyze and oversee. The "pedigree" of boards and management teams is coming under increased scrutiny. Responsively, the NRECA Education 2000 Committee identified the core competencies possessed by our industry's most effective directors. These directors are establishing the standards for our industry. Clearly, NRECA must alter the certificate process and focus of director training to meet these pressures, meet the needs of our changing directors...