Credit Union Leadership

Laggards. We need fewer credit union leaders who are "just buying time until retirement." They avoid the necessary steps needed today to ensure long-term sustainability. They aren't taking any risks because they don't want to rock the boat before their retirement. Some are just holding out, waiting for a golden merger ticket. If this isn't selfish and unlike the cooperative model, I don't know what is. Seriously – waiting for a merger to take care of the leadership's retirement? This isn't usually in the best interest of the membership, or the employees who may not survive a future merger. Credit union leaders should be fully engaged until the end. They should be committed to leaving behind a wonderful legacy that will ensure the credit union is successful long-term.
Poor performers. After they've exhausted a long list of options, credit unions with consistently negative membership, loan and revenue trends should merge. In these situations, sooner is usually better than later. Credit unions that wait too long may have a very difficult time finding the ideal merger partner, because they just aren't attractive candidates anymore. Let me be very clear – I'm not usually an advocate of mergers. But credit unions that fail to remain relevant (in the areas of growth, revenue and member impact) are not viable in the long-term.
Jerks. Narcissistic leadership does not belong in a cooperative movement. Now, I'm not talking about a healthy ego. We all have egos, and we need confident leaders. However, when a healthy ego crosses the line into narcissism, it's time to go. I recently ran across an example of this when a small (and thriving) credit union CEO received a package at her office. The sender of the package was a third-party vendor who represented a large credit union in the region. The package contained a merger kit and background information, with the assumption that it would be in the best interest of the smaller credit union to merge. There was no phone call and not even a personalized letter from the CEO. Who do these people think they are? This goes way beyond a healthy ego; it lacks respect and common sense. Then there are the jerks: These are the people who don't play well with others, and are demeaning and flat out disrespectful. The good news here is that the new generation has less tolerance for this behavior than previous generations.

Why It Matters

At a minimum, poor leadership and negative cultures limit the potential for member and community impact, strong workplace cultures and employee development, consistent balance sheet growth and sustainable revenue. At its worst, these unchecked situations are killing the credit unions they serve and detrimental to the quality of life for the people they employ. It's a shame to see unhappy people in a movement that accomplishes so much good. It shouldn't be this way.

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6 Arguments for Thinning the Credit Union Herd

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