# Mastering NCUA Documents of Resolution: Expert Insights on Effective Project Management
In the ever-evolving landscape of credit union regulation, one challenge stands out for many institutions: managing NCUA Documents of Resolution (DORs). In our latest "With Flying Colors" podcast episode, we sat down with industry veterans Steve Farrar and Todd Miller to unpack the complexities of DORs and provide actionable strategies for credit unions.
## The Changing Face of DORs
Our experts highlighted a significant trend: DORs are becoming increasingly lengthy and complex. Where once a DOR might have contained a handful of action items, it's not uncommon now to see upwards of 30 items, each with multiple parts.
Steve Farrar notes, "We're seeing extremely lengthy documents of resolution containing upwards of 30 action items. And some of them would have parts underneath them."
This trend poses new challenges for credit unions, who must balance these extensive requirements with their day-to-day operations and strategic goals.
## Communication: The Cornerstone of Effective DOR Management
Both Farrar and Miller emphasized the critical role of communication in managing DORs effectively. This includes not only communication with NCUA examiners but also internal communication within the credit union.
Key takeaways on communication include:
1. **Clarity is crucial**: Ensure you fully understand what the examiner is asking for in each DOR item.
2. **Negotiate timelines**: If a deadline seems unrealistic, communicate this to your examiner and propose a more feasible timeline.
3. **Keep internal stakeholders informed**: Regular updates to your board and management team demonstrate your commitment to addressing the DOR items.
## Project Management: A Strategic Approach to DORs
Treating your DOR as a project to be managed can significantly improve your credit union's ability to address the required actions effectively. Our experts suggested several project management strategies:
1. **Prioritize**: Not all DOR items are created equal. Identify which items are most critical and focus on those first.
2. **Assign accountability**: Ensure each action item has a clear owner within your organization.
3. **Resource appropriately**: Understand the time and financial resources required for each item and allocate accordingly.
4. **Track progress**: Use project management tools to monitor progress on each item.
5. **Report effectively**: Strike a balance between keeping stakeholders informed and avoiding excessive time spent on reporting.
## Understanding the True Cost of Compliance
An often-overlooked aspect of DORs is their financial impact on credit unions. Todd Miller pointed out, "Some of these DORs, when they take hundreds of hours and involve third parties, you're looking at costs that hit 100,000, half a million dollars really easy."
Credit unions need to be aware of these potential costs and factor them into their planning and negotiations with examiners.
## The Balancing Act: Reporting vs. Action
While reporting on progress is crucial, our experts cautioned against letting reporting consume all your resources. "There is a point where sometimes you can spend more time reporting than you do fixing the problem, and you want to avoid that issue too," Miller advised.
The key is to find a balance that keeps stakeholders informed without impeding actual progress on addressing the DOR items.
## Conclusion
Managing NCUA Documents of Resolution is a complex task, but with the right approach, it's one that credit unions can master. By focusing on clear communication, effective project management, and a realistic understanding of the resources required, credit unions can turn DORs from a regulatory burden into an opportunity for organizational improvement.
Remember, the goal isn't just to check boxes on a regulatory requirement—it's to strengthen your institution and better serve your members. With these strategies in hand, you're well-equipped to do just that.
*Want to learn more? Listen to the full episode of "With Flying Colors.
Reach out to learn how we assist our clients with NCUA so they save time and money.
Comments