By Ray Birch
ONTARIO, Calif.—It’s time credit unions dedicate a greater percentage of their professional education dollars to courses that teach the credit union philosophy and provide a sound understanding of the movement, according to the dean at Western CUNA Management School.
Michael Steinberger, also an associate professor at Pomona College, which hosts the program better known as WCMS, says that focus is not just nice to have, it’s a must-have.
“They are so much more important today because credit unions are hiring a lot more people from outside our industry,” explained Steinberger. “The expertise credit unions are bringing in today is different than the expertise they brought in 10 to 15 years ago, and that has led to a lot of hires from outside the movement.”
That has led to a significant number within the credit union workforce who did not begin their careers inside the industry, and Steinberger said it is important they quickly learn what credit unions are about, why their mission is unique, how credit unions differ from banks, and more. That training, he insisted, must be more than what employees typically receive when they are onboarded.
As a new academic year approaches, Steinberger’s insights are part of a CUToday.info series themed “Back to School” that highlights credit union professional education programs.
“It is so important that these new employees understand how credit unions serve members and receive training that gives them a more holistic understanding of credit unions,” he said. “Twenty years ago when somebody started as a teller and worked their way up through the organization, which often happened, this kind of education wasn’t necessary.”
‘You’re Not Going to Be as Effective’
Steinberger continued to explain why he believes it’s essential that new staff who begin their careers outside credit unions get a grounding in the fundamentals of CUs.
“You might be the perfect branch manager, for example, but if you don't understand how credit unions truly work, how member sentiment affects the credit union, then you're not going to be able to be as effective,” he said. “I think what managers and leaders have to have today is a sound understanding of the multiple parts that make credit unions work. They need to be able to talk intelligently to the experts in those parts of the organization. I think the true leaders today are the ones who are able to bring this expertise together.”
Additional Demands
Turning to other growing demands for specific professional training, Steinberger said credit union leaders want more education on how to plan for the future in an environment that is changing quickly, making it difficult to plan more than five years down the road.
“We focus on education, on how to make decisions knowing that five years from now everything you know today is going to be obsolete,” he said of Western CUNA Management School, which was established in 1959. “There's lots of current disruptors, but we don't spend as much time just talking about these current disruptors, because, again, in five years they may be obsolete.”
What is then best for professional education programs, according to Steinberger, is to focus instead on disruption in general and how to plan for these kinds of events.
What is also on the minds of credit union professionals, added Steinberger, is interest in learning how to better reach out to members, better serve them and how to empower more employees to do that.
“Those are two key areas in which we are seeing more requests,” he told CUToday.info.
Coping With Change
Steinberger thinks credit union leaders, too, need more instruction on how to cope with change.
“Credit unions need to acknowledge that change is the new normal,” said Steinberger. “So, how do you help your leaders become comfortable with change and how do you augment their decision-making process in a world in which everything is probabilistic? There's risks if you do. There's risks if you don't. So, how do you really empower leaders to make good decisions with the information that they have?”
Steinberger added that leaders need to gain greater knowledge in how create a culture within the organization that empowers changemakers.
The Need for Education
But none of that can happen if credit unions are not dedicated to professional education, he said, reminding that employee training can be one of the first areas cut when money is tight.
“A lot has to do with the credit union balance sheet,” he said. “When credit unions have money they know it's a good idea to invest in their people. But when the 2008 financial collapse happened, when financials and credit unions were strapped, they pulled back on their training. But what we do see is when they come out of that stretch one of the very first things they do is invest in their people. You have to have good people to make good decisions.”