In a full first day of pomp, circumstance and executive orders, a new regime took over the leadership of the U.S. government. Among the new President’s many actions was appointing Kyle Hauptman as Chairman of NCUA. What will this mean for the agency and credit unions?
Among the blizzard of Trump’s first day executive orders were a number directed at the administration of federal agency management. These orders included:
- The requirement for all employees to return to office five days per week;
- A freeze on hiring;
- The removal of civil service protection on senior positions.
- Ending all DEI training and policy implementation.
There were also multiple references to eliminating regulations and sending the people’s money back to them via reduced spending, and maybe lower taxes.
Chairman Hauptman’s term expires in August of this year. Will he follow these priorities of the new administration or assert independent agency status, and therefore not bound by these initiatives?
Hauptman has a number of initial decisions that will indicate what his governing practice will be including:
- Who does he add to his team as appointees and what is their professional experience–credit unions or government employment? Or, purely political patronage?
- What is his governing philosophy? Is the job a full-time leadership responsibility for the agency, or merely a policy setting role delegating to staff all interpretation and implementation?
- What is his view of the role of the cooperative credit union system? Is the coop design unique, or just another form of financial choice in the marketplace? How does he assess the major trends in the industry including merger-acquisitions, the buying of profitable banks and the suggestion that credit unions be taxed?
Preparing for the Role
Hauptman announced his intent to become chair posting “openings” on LinkedIn several weeks ago. His view of credit unions and a governing agenda have never been spelled out. His statements on policy have been in response to Harper proposals, which he has largely supported including the longest, most intrusive rule NCUA ever added to the books, Risk Based Capital.
What will be his leadership style as Chair? How accessible will he be to the public, the press and to the credit union community? Will he listen in conversations or deliver scripted positions? Will he present objective and fact-based priorities or rely on general cliches about government’s role?
Can he articulate common purpose with the cooperative system founded on collaboration, or will he assert NCUA’s independence from credit union’s destiny or fate?
When problem events occur, will he respond with factual answers, send out staff to reply, or worse, just stay silent and avoid any comment as the press reports on credit union shortcomings?
People, especially those working in credit unions serving members, want to hear from their regulators. The coop democratic structure is intended to give responsibility to the members and their chosen leaders. Openness builds trust and confidence. Distance undermines the collaborative advantage which is the foundation of two vital NCUA facilities: the CLF and the NCUSIF.
The Learning Challenge
For both individuals and organizations to succeed they must become learning entities. Responding to change is more than just adding new technology or professional expertise. It means sharing a vision while responding to the constant changes which we all face.
The Shakespearean actor Patrick Page stated that it takes at least 30 years to become an effective performer. Acting first requires knowing thyself, the motivations and awareness that comes from life’s experiences, relationships and multiple roles. But just as important is understanding the same characteristics in others-especially if you intend to present their character to the public in plays.
Leaders are formed in the same way. Leadership is not conferred by appointment to a role—no matter how deserving the individual interprets his or her selection. It is formed in the challenges of life—the wins, the disappointments and the strivings.
Now Hauptman has the chance to show how he will learn and lead. The fate of an industry may depend on how successful his growth can be.