Note about the author: After earning his MBA from UCLA John spent 20+ years in the for-profit world. He says the biggest challenge of leaving corporate roles for credit unions was the realization that loans were assets, and savings a liability. He was CEO of American Airlines FCU for 17 years. He then guided a troubled credit union to stability for three years, followed by a decade of consulting and speaking about leadership and strategy.
Trust and Stewardship
by John Tippets
Leadership character has a great many dimensions. Among these are, to be trusted, honest and open. Customers, owners, and employees rightly expect no less.
Leaders also have a role as stewards, the care and protection of the reputation and brand, the quality of its products, the welfare of employees and their families, and the financial and physical assets of the entity. These are all parts of his or her responsibility.
Self-Interest Versus the Public Good
Sadly, in today’s world these principles are far too often not adhered to, or intentionally violated. In some charities, NGOs and similar non-profit entities, overhead costs including numbers of executives with excessive compensation are eating up significant portions of donations, government (taxpayers) funding or of earned incomes.
We are seeing these fraud “clinics” diverting their dollars to cars, boats, vacations, and other personal benefits. We see politicians compromised, doing the bidding of large donors, or taking personal financial advantage of non-public information.
SAFE’s Role Reversal
Credit Unions are ‘not-for-profit’ co-operatives with tax exemption certifying their civic public duty role. Credit Union employees go to work every day to help improve the lives and welfare of their members and their communities. Credit Union employees generally love what they do and love the people they do it for. One credit union (of many or most) which has done a fantastic job living this vision and mission for generations has been SAFE Credit Union of Sacramento, California.
So, it is stunning to me (and likely to many) to learn of plans by the SAFE Board of Directors and the Senior Executives to have the SAFE Credit Union acquired by (merged with) another credit union.
Hopefully, all members will be able to learn of the factual pros and cons, the operational changes, and the financial and service impacts. Will employees be encouraged to share their thoughts, or will they be instructed otherwise and just go along? Will all the insiders’ seemingly extreme benefits be fully disclosed and justified?
The Real Question for SAFE Members
My initial text above is about the loss in many institutions where the character of leadership is vital. We know this process involving SAFE Credit Union would at the minimum meet the legal and regulatory requirements (that’s the lawyers’ job). But the real questions are whether the potential and likely outcomes are, in all ways, morally right and consistent with the principles and purpose for which SAFE exists?
John can be reached at johntippets@live.com