MADISON, Wis. - Credit unions have changed in size and complexity since they first opened their doors for business in the U.S. almost 100 years ago. But what about credit union values, have they evolved also and if so, how? Those were some of the questions University of Wisconsin-Madison researchers Ramon Aldag and David Antonioni set out to answer in their research "Mission Values and Leadership Styles in Credit Unions" for Filene Research Institute. The ability to adapt credit union core values to the fast changing financial services landscape has been one of the challenges facing CUs in recent years. Another way to phrase that challenge - can credit unions continue to grow and remain competitive while remaining loyal to their core values? To answer that question and others, Aldag and Antonioni asked 454 credit unions to rate the importance of 28 statements of value to their credit union. They also probed respondents to ascertain what extent their credit union practiced each value. The top four values rated by importance were: * providing the best possible service; * treating all members with dignity and respect, regardless of the size of their credit union business; * ensuring that the staff provides information and education to members to help them choose the credit union products most suitable for them, rather than the ones that are best for the credit union's net income; * providing what members want. The values respondents most practiced were: * directing the credit union with volunteers, rather than paid board members; * treating all members with dignity and respect, regardless of the size of their credit union business; * providing the best possible loan rates; * providing the best possible service. The study also asked CEOs the extent to which they agreed or disagreed with some philosophy and value-related statements. Respondents agreed most completely on: * the one-member, one-vote principal is an important part of the credit union philosophy; * we are running a business, but we try to run it with a strong sense of compassion, altruism and love of neighbor; * the credit union philosophy offers an important competitive edge. A comparison of importance to practice reinforces the significance of two of these values as being core credit union values. These two values - treating all members with equal dignity and respect, regardless of the size of their credit union business; and providing the best possible service - consistently rated at the top for credit unions regardless of their size. Values that ranked at the bottom of the scale in important or in practice were also insightful. The bottom four values rated by their importance were: * being aware of supporting the international credit union movement; * offering services to low and moderate-income people by expanding our field-of-membership; * achieving a high voting rate as evidence of a strong feeling of democracy among members; * charging everyone the same rate on loans, regardless of their credit history. Filene Executive Director Bob Hoel said the study cuts to the core of the principles by which credit unions define themselves, and the underlying business ethics practiced in our cooperative community. Growth for growth's sake, the study showed, was perceived as being inconsistent with traditional credit union values. -
ekingoff@cutimes.com
