JEFFERSON, Wis.–A champion of small credit unions, Thomas C. Pinnow recently announced he plans to retire. Pinnow, CEO of the $24-million County-City Credit Union, has frequently shared his thoughts on issues facing small CUs in CUToday.info. Below, Pinnow participates in a CUToday.info Exit Interview, offering some lessons learned and perspectives gained during his career.
CUToday.info: How did you come to be involved in credit unions?
Pinnow: I went to work at a local bank as the senior lender in 1986. Unbeknownst to me at the time, I had a credit union philosophy of helping people, but the president was a greedy, self-centered banker. We had different people and management philosophies, so he fired me. It was traumatic at the time, but it turned out for the best. If you ever get fired treat it as an opportunity to make a positive change, and accept your responsibility for what happened. It is never just one person’s fault.
There was an opening at County City Credit Union, so I applied and was hired in 1989. I noticed the difference in philosophy the first week. I went to my first credit union function and when I got home I told my wife that there were “real” people there. I don’t think there was anyone there in a three-piece suit. (That was fashionable then.)
CUToday.info: What have you learned about managing people during your career?
Pinnow: Your team is the greatest asset you have, so show every team member respect and sincerely take an interest in them. Make sure everyone has very clear job description and hold them accountable.
Your team needs to be happy and appreciated to give excellent service. Create a pleasant and supportive environment. If anyone is bringing people down they need to improve or move on promptly. I fired four people over the years because they had a negative effect on our team. This actually demonstrates respect for the rest of the team.
You also show respect by listening and acting on their input. If you don’t use it tell them why. Encourage feedback from everyone, especially negative feedback. Tell your team they can tell you are you are nuts, but please do it behind closed doors. If they are afraid to disagree with you, you will not get effective feedback. You need to hear what you don’t want to hear.
It is vital that they believe and trust you. This means saying, “I was wrong” when you are wrong. As the CEO you set the attitude of your staff with your attitude.
CUToday.info: What have you learned about managing a credit union?
Pinnow: It is a challenge, which I have enjoyed. My background was in lending when I started in 1989, so it was great to get involved with the deposit and operations side. A benefit of a small credit union is that you are not pigeon-holed in one area.
A credit union is special, because it is owned and controlled by its members. This requires us to always consider what is in the best interest of our members as a whole. Not for Profit, Not for Charity, But for Service is a great creed to follow.
I have learned that you need to be dedicated to the movement, service oriented, helpful, motivated, diligent, politically active, constantly trained and re-trained, focused, energetic, humble, courageous, hardworking and have unquestioned integrity.
CUToday.info: If you could go back and talk to yourself on day one on the job, what advice and thoughts might you share?
Pinnow: I would tell myself that you are now part of a “movement” to help people. Always do what is in the member’s best interest. You are here to help your members, but we are not a charity. We are not for profit, but we are a business. We need to make a profit to be viable. As a small credit union you cannot compete head-to-head with larger institutions. You need to recognize and accept your limitations. Do not take on any new products or services unless you can do them very well and they will generate a good return or at least cover their costs.
Become a master delegator and hold people accountable. Develop a mission and vision with your board and team to serve your members. Then follow up and re-evaluate regularly. Have very clear job descriptions for everyone. Communicate openly and sincerely with your team, members and your board. Don’t take anything for granted with your vendors, especially your data processor. Do your due diligence and then do it again. Give a new vendor a list of expectations in writing and hold them to it.
Don’t let the credit union dominate your life. Make sure you balance work and family.
CUToday.info: What is your view of the future of credit unions, especially small CUs, if there is to be one?
Pinnow: The future of credit unions as a movement is bright, if the bankers are kept at bay. It will be a tough road for small credit unions. Constant mergers concern me. In 2014 65% of credit unions were under $50 million. Small credit unions are a majority, but larger credit unions rule the roost. I have been re-assured that everyone looks out for small credit unions, but as a $25-million credit union I just don’t feel it.
Onerous regulations are also a threat to small credit unions. Our politicians need to back off if we are to survive. The regulations passed by Democrats in 2009 and 2010 are absolutely insane. And now the CFPB is inflicting more pain. I will never vote for another Democrat and I hope you don’t either.
If small credit unions continue to evaporate the movement will be forever changed-and not for the better.
Can we work as a movement to support the success of credit unions under $50 million to maintain the profile of our movement? Sadly, I have my doubts, but please prove me wrong.