For the past month, the public has watched President Biden struggle whether to continue his campaign as more and more questioned his leadership capacity. His predecessor took a more forceful effort to remain in office on January 6, 2021.
It is extraordinarily difficult for appointed or elected public officials to know when to leave their roles. These public positions are prized for their power, perks and prestige. Stepping out of the limelight is contrary to the ambition that brings most persons to seek roles of public responsibility in the first place.
Moreover appointed positions frequently confirm a person’s sense of special purpose or even even self-worth. As former NCUA Board member McWatters commented about his colleagues’ views in May 2015:
“Regulatory wisdom is not metaphysically bestowed upon an NCUA board member once the gavel falls on his or her Senate confirmation. NCUA should not, accordingly, pretend that it’s a modern day Oracle of Delphi where all insight of the credit union community begins once you enter the doors at 1775 Duke Street in Alexandria, Virginia.”
Compounding the difficulty of moving on, is that one’s closest advisors brought to new positions of responsibility that will be lost, are hesitant to tell the “boss” it’s time to go. So their counsel is to remain until external events cause turnover.
The Two Exceptions
Every NCUA board member and chair have stayed beyond their established term until the administration moved to replace them. There are two exceptions-the first two Chairs of the NCUA Board.
Larry Connell left his six year term on January 1, 1982 following the appointment of Ed Callahan as Chair the previous October. He became CEO of Washington Mutual Savings Bank in Seattle. The thrift had 37 branches and was the largest and oldest mutual savings bank in Washington. For Larry it was a clear move up in terms of personal and professional opportunity.
At the February 1985 CUNA GAC meeting in Washington DC, Chairman Callahan announced that he and his two colleagues, Chip Filson and Bucky Sebastian, would be leaving NCUA to form a credit union consulting company. Ed’s resignation was effective May 1, 1985 or over two years before the August 1987 end of his six-year term.
Ed’s explanation for why he believed it was time to move on is insightful. He said that he had done what he came to NCUA to accomplish. In a May 1985 NCUA News interview he listed these as “the deregulation of Federal credit unions, the decentralization of the agency, the capitalization of the NCUSIF. The result was that “most people at NCUA have a good sense of where the Agency is going and how they fit into the picture.”
The Example for Today’s Leaders
In Callahan’s view, his role as Chair was done. “It’s all working. The team is in place. There is a sense of confidence in the Agency, and it has infected the credit union movement as well.”
Time to move on. Government employment was not his career goal or personal ambition.
Ed and Larry’s examples of leaving with time left on their terms illustrates the character of these two initial chairmen. Their professional lives and contributions were not defined by their time at NCUA. Both continued to make meaningful impact in multiple future leadership roles.
I believe the logic Ed used to describe his decision is important for leaders today. He became chair with a purpose and a plan. When the results were accomplished, his role as chair was complete. His tenure was not arbitrarily defined by the term of an appointment. Or the next election outcome.
Without a clearly defined purpose, leaders within government and credit unions will resort to cliches about safety and soundness or people helping people. Leaders whose purpose is simply responding to unfolding events will not know when their role should end. For change is always happening.
The instinct to perpetuate one’s time in a role and then referring to one’s experience as the basis for continuation, will lead to stagnation. This is the common justification for renominating current board members to fill annual vacancies in credit union elections.
Knowing when it’s time to leave is as important a skill as the effort used to earn the position in the first place.
President Biden has been universally congratulated for his decision to give up his effort to remain in power. Likewise Ed’s service has NCUA Chair of just under four years, is recalled as a special time of “partnership” between the agency and the credit union system. Isn’t this outcome what democratic governance is intended to accomplish?
Well said Chip!