Every organization will face moments or periods of crisis. These events can cause leaders to question the sustainability of their enterprise.
Sometimes the challenges are internal: succession, mismanagement, poor leadership, or loss of confidence and purpose. External threats seem never ending from unrelenting competition, extraordinary climate events, and even the constant probing by criminal or ransomware bad actors.
What is the ultimate defense against these dual sourced tests? Some would say it is the level of capital (net worth ratio); others, capable tested leadership; and finally some credit unions will reference the fact they are NCUA insured.
The irony of this last assurance is that NCUA has clearly demonstrated that it is not in the business of protecting credit union charters or even granting new ones. Their approach is purely administrative: to note the steady passing and decline of industry charters in quarterly updates.
The Strength in All Seasons
I read this mission-like purpose statement recently:
Our purpose is to manifest unity as:
We experience, practice and pursue community;
We share resources willingly to benefit one another;
We know and respond to other’s burdens;
We encourage, admonish and support each another;
So that together we achieve greater economic justice and individual well-being for this and generations to come.
Too idealistic? Almost religious in tone? Yet it captures the most important foundation of cooperative strength: the support and belief of the member-owners working together, that is “community.”
When member confidence in a credit union is not the primary goal of every transaction or service, sooner or later, the owners will see that the organization as just another financial option. It will have lost the unique cooperative foundation-the loyalty and belief of its members.
This confidence should be the principal responsibility of the board, to be visible and available in all seasons—the good and the challenges.
Because credit unions are in the financial business, it is tempting to assure success in purely financial numbers or goals. However that has never been the credit union advantage. Rather it is the relationships with members. That is an outcome earned over months and years, not achieved with a branding or inventive marketing effort or even offering the latest technology.
Credit unions are organized on one of the most important aspects of life—what we seek is relationships that reflect our values and priorities.
What matters to you in your activities and professional endeavors? The $ signs or the relationships?