Credit union CEOs have developed a newfound “merger competency” that is fast becoming part of their skill set, according to a new white paper report issued Monday by the CUNA Councils.
The 19-page report, written on behalf of all six CUNA Councils, found that mergers sometimes flounder because of too much focus on the financials and operations whereas the “critical element” for CU managers is “knowing the importance of tradition and culture.”
“While integrating two cultures, capable leaders know the importance of symbols and signals in communicating with employees about change,” said the paper entitled “Developing a Merger Competency.”
The report said the merger landscape is shifting in ways both subtle and dramatic noting that more than a third of all CUs operating in 2008, for example, had participated in at least one merger between 1979 and 2008.
“Attitudes are also evolving; mergers are no longer considered the last resort for a failing institution,” the report concluded. “In some cases they are part of a thoughtful strategy for healthy credit unions.”
Ellis Waller, manager of CUNA membership in Madison, Wis. noted that the merger issue has gained higher prominence in recent months.
The last time a report was developed by all six councils was in May 2009 for a report on courtesy pay. The six councils include: Chief Financial Officers, Human Resources, Training, Lending, Marketing and Business Development, Operations-Sales-Service and Technology.