WASHINGTON–How can credit unions shift the end-game for themselves? With an attitude change and better CEO and management development, according to two people.
Those two views were shared as part of the discussion at the UNDERGROUND Conference here and it was, in turn, the subject of some spirited debate itself. The UNDERGROUND Conference was hosted by Mitchell Stankovic & Associates, and CUToday.info is providing coverage of the unique meeting as part of UNDERGROUND Week. The meeting, held at the Newseum in Washington, sought to create a forum where executives to get together and share ideas that were outside the mainstream. Other coverage can be found here, here and here.
“Reflecting on the UNDERGROUND Conference and the presentations and dialogue of the dynamic speakers and attendees, I was struck by two things: The passion and the pessimism,” noted Frank J. Diekmann, Cooperator-in-Chief at CUToday.info and moderator of the final panel discussion of the day at the UNDERGROUND Conference.
CUToday.info's Frank J. Diekmann, who moderated a session during the UNDERGROUND Conference.
“It was clear from so much of the dialogue how strongly everyone felt about the credit union business model, and that credit unions are the bridge to a better life for American consumers. And yet I sense a pessimistic undercurrent that credit unions will not be around in the future. It’s an undercurrent I have felt at other meetings, as well. It’s ironic, too, since credit union numbers have never been more robust overall, although the mom and pop shops are increasingly filling out their last wills and testaments. There was optimism to be found in the meeting, however, in that so many influential leaders were on hand and they share a belief in the cooperative finance. Now is credit unions’ chance to take this conversation from the underground to the mountain and shout the message.”
As part of the quick-moving nature of the UNDERGROUND Conference, the “shift the end game” panel discussion represented four different speakers with four different views on four different topics. Here’s a look at each:
CEO Development & Succession Planning
Among those topics was the corner office at companies overall and credit unions in particular. Attendees were told that a 2002 study by Forbes found that 86% of organizations appointed CEO from the inside, but today 48% organizations in US can’t promote within due to lack of skills and have no viable internal candidates to permanently replace the CEO if required to do so immediately, according to the Harvard Business Review. Meanwhile, within credit unions, the average age of CEOs is 57 and 30% are older than 60.
Brandi Stankovic.
“Credit unions are faced with a skills gap between the CEO and top executives,” stated Brandi Stankovic, Senior Partner of Mitchell, Stankovic and Associates. “Internal promotion is challenging and typically only occurs up to the second in command. Valued apprenticeships in CUs are becoming obsolete. Young adult inclusion programs in this industry are creating entitlement and making the gap worse, not better.”
Credit unions must “value the energy of young talent” said Stankovic, who illustrated her point with a metaphor.
“When your best friend, confidant, golden retriever Max dies at age 16- you can’t imagine life without a dog,” she said. “ Through the tears you impulse purchase a puppy, and it’s a shock—the overwhelming energy of a puppy that pees everywhere, eats shoes, and jumps on guests. Yep, puppies pee. Puppies need training. Puppies need more attention than Max did. But just like the old dog, if you spend the time, one day, your puppies will grow up to be CEOs. Don’t be put off by their energy. Train the puppies. Effective succession management recognizes that talent impacts organizational performance. Embracing education and development allows you to enhance your leadership and position the institution for the future.”