ROLE OF CREDIT UNION CEOs
How the role of the CEO has changed
The role of the chief executive officer/or manager/president in helping to shape federal, state and local laws is a role that continues to take on added importance.
The battle for H.R. 1151 proved that individuals can make a difference; and in that case, a difference that will impact tens of millions of people for perhaps generations to come.
Based on many lessons learned from H.R. 1151 and from earlier encounters with those who would harm consumers, can never afford to let our guard down again. Effort, time and money are required to ensure our elected and appointed leaders hear and understand the Credit Union Movement's message to promote Freedom of choice.
We recognize that a CEO's job has been evolving over the years from one managing a few people in a fairly simple operation to one that can be extremely intricate and fast-paced. With technology advancing, regulatory burdens increasing, and member demands to provide a larger market of products and services, even the smallest credit union operation can be complex.
Part of the increasing complexity comes from the need to become more politically active. In simpler times, most credit union people could rely on their leagues and paid lobbyists to handle the issues in Washington and their state capitals. With the growth of the Credit Union Movement, expansion of products and services offered, the increasing role of government in all facets of our movement and the banking lobby declaring "war" on credit unions, it becomes clear that it will take an army of credit union disciples, in every state, to protect the Credit Union Movement. Credit union pioneers worked too long and hard for our new leaders to ignore their responsibility to safeguard the freedoms we currently have.
What CEOs can do
What can current and future credit union CEOs do to safeguard our Movement? There is, of course, no pat formula that is guaranteed to work. We do know that letting the bankers continue to set the agenda while we play defense is a recipe for failure.
CUNA believes that our CEOs should:
- Be aware that becoming a CEO brings with it the responsibility to be politically involved. Ideally, the person assuming the role of CEO will already know the needed skills prior for this position; however, even those who have had no prior exposure to political activism can and should learn new these skills.
- Be appreciative of the history of the Credit Union Movement and the sacrifices made by many others over the past 100 plus years to get us where we are today. History is a great teacher and every CEO should have a grounding in the fundamentals of credit unionism before implementing a political involvement program.
- Be ready to dig in and design a local program that will ensure success in getting
the credit union message told and told correctly. Designing a local program can be a great
deal of fun and staff members at all levels can be included. Not all credit unions can have
extensive programs, but all credit unions can maintain contacts with elected officials.
Some ideas credit unions have implemented include: - Be vigilant to threats from those who could harm us. Provide rapid feedback to your league/CUNA when situations occur that could become a detriment to credit unions. Don't assume that our leagues are aware of all threats-they aren't. Each CEO must be like a military commander on the ground.
- Be thankful for what we have and what we've accomplished. Thank all credit union friends, elected officials and their staffs for taking time to visit or listen to an issue. Being demanding, argumentative or threatening is not the CU way and we have to understand that there will be many battles to fight. The key is to not burn bridges; sometimes politicians can't be with us on certain issues. If they can't, tell them we are sorry and we hope we can work with them in the future. Respect an elected official's honesty when they communicate they are for or against our issue. Seldom does this happen when the issue is controversial.
- Be a sponge. Learn all you can and encourage younger CU folks to do the same. Attend political training sessions sponsored by the leagues and others.
- Be consistent. Design and implement a plan then stick with it. Don't do what happened before H.R. 1151 by responding only to fires. Stay involved in the political process even when there are no brush fires to fight. Include your plan as a part of your annual budget process.
- Be a storehouse for consumer information. Encourage politicians (city, county, school, state, federal) and news reporters to contact you for information on consumer issues. If you don't have the information at your fingertips, call your league and check with CUNA. Reporters have deadlines and will continue to seek input from those who respond quickly and accurately.
- Be positive. Even when events are not going to suit you completely, stress the points that will. People like to be around positive people and your standing will improve with politicians as you become known for your positive outlook.
- Get it in writing. To ensure that your views are in sync with your volunteers, ask
them to formally approve your plan. For those who have contracts, we suggest that wording
similar to the following be included in your contract:
"The CEO is encouraged to establish a system whereby appropriate local, state and national elected and appointed officials are informed about topics of interest to our members. The CEO may solicit and publish the views relating to credit union issues of various candidates for public office. The Board also recognizes that the Credit Union Movement must be a player in raising funds for politicians who help us. The CEO is therefore encouraged to implement approved programs that will help achieve credit union goals. Additionally, the Board encourages the dissemination of the "credit union message" by volunteers and staff throughout the community by participation in service clubs, chambers of commerce, and other appropriate venues. From time-to-time, the CEO should update the Board of Directors regarding efforts in this arena."
If included in a CEO's contract or alternatively, as a board resolution, the importance of being politically active will be clear to all. Having this direction in writing will also give protection to the CEO and provide outstanding guidance to a new CEO.
a. Raising money for CULAC (including staff, volunteers, and members).
b. Visiting the home offices of elected representatives and get to know the staffers.
c. Visiting federal elected officials at least twice a year in Washington (once during the CUNA GAC) and state officials at least once each year (put these visits on a yearly calendar and stick with the plan).
d. Finding out when elected officials will hold local "Town Meetings" and always have a few staff/volunteers/members there and "mingle" (bankers have done this forever).
e. Adding elected and appointed officials to your newsletter mailing list. Periodically write to them and describe the uniqueness of your credit union.
f. Taking every opportunity to publish, in newsletters, etc. your elected officials' views on consumer issues with their pictures (this is free publicity for them).
g. Writing letters of support for credit union issues, make phone calls, and encourage others to do the same.
h. Sharing success stories with other credit union leaders.
i. Attending local fundraisers for politicians who support credit unions (use care not to be partisan and don't get involved in discussions unrelated to the credit union issues---the Credit Union Movement is not about political parties or issues---it is about people helping people and the unique role credit unions, as not-for-profit financial cooperatives, play in improving the financial success of their member-owners).
j. Working in election campaigns for CU friendly politicians.
k. Appointing a "political liaison" to oversee all related activities (this could be the CEO, a volunteer, or a staffer who enjoys working political issues).
l. Appointing "team captains" at each CU branch to energize the grassroots when needed.
m. Inviting elected officials to your annual meeting, to special anniversary celebrations, groundbreakings, etc.
n. Developing working relationships with members of the local press and invite them to credit union functions.
o. Updating your board regularly on political activities and follow their guidance.
How to fulfill your role
How do we squeeze in more tasks when there is already "too much" to do? Running a credit union has always been about setting priorities. In simpler times we may have concentrated on detailed reviews of delinquencies, cash over/short reports, paid-ahead loans and the like. As our business has become more complex, we have had to learn to delegate more and concentrate on the issues that demand our attention. We can't focus our efforts on past events (such as bad loans), instead we need to transition from being managers of things to leaders of people. A leader will arrange priorities so the most important tasks get accomplished. With the average CEO investing perhaps 55 hours a week for the credit union, as estimated two hours could be redirected toward helping ensure the survival of the Credit Union Movement, and therefore, could change the future. If 11,200 CEOs invested 2 hours a week to shape the future, we would have the equivalent of 540 people working full time spreading the CU good news.
Let's move forward in 2000 with a renewed commitment to shape our own future through enlightened political activism!
