Author: Chip Filson

Posted on

A CEO for All Seasons

Dayton Ohio is most commonly known as hometown for aviation pioneers and inventor-tinkerers, the Wright Brothers. The local Wright-Patterson Air Force Base was named after them.

On that base in 1932 workers at Wright Field decided to chip in 25¢ a week to help an ailing co-worker and his struggling family. It was this shoebox of money that evolved to become today’s $7.0 billion Wright-Patt Credit Union.

The credit union was planted in this southwestern community of Ohio where inventiveness, hard work and the belief that people take care of each other were long standing values.

Doug Fecher and Wright-Patt Credit Union were made for each other.  He grew up in this culture and was reared on its values.  His strength, life-long connections and character are rooted in places where he saw people taking care of each other in times of need.

His capabilities perfectly matched the Wright-Patt community when he became CEO in 2001 after the sudden death of his predecessor.

His career did not start with the ambition to become a CEO. After high school, he left for Chef school, thinking academia was not his forte, and where his mother had paid tuition.  Changing diection, he then enrolled in the University of Cincinnati and eventually graduated while nurturing curiosity and eclectic interests that made him a lifelong learner.

He began his credit union career as a teller, a short-lived position because of the challenge in balancing out each day’s activity.  He then moved on to business development and marketing before joining Wright-Patt as VP of Lending in 1995.

In each phase of life, he developed lasting friendships.  At his retirement celebration he recognized grade school friends with whom he had gone scuba diving later as adults, a high school science teacher whose course he barely passed, three generations of his family as well as many professional colleagues.  He named each while recounting stories of the positive experiences he gained from these relationships.

His Leadership as CEO

His twenty years as CEO spanned unexpected and the most consequential challenges any leader could ever confront:  the attacks on 9/11 which kept the US at war for 20 years; the Great Recession of 2008/09; a decade of historically low interest rates; the national economic shutdown of March 2020 resulting in the steepest one quarter drop ever in GDP, and the on-going COVID-19 pandemic.

These were not classroom MBA case studies. They were real-time events requiring immediate actions. The responses affected every person who depended on the credit union to do the right thing for them. In each of crisis, Wright-Patt met every challenge being there for members in spontaneous and creative ways.

When severe economic downturns occurred, he stepped up lending to members for home refinancing or ownership and for car purchases. Fees were waived. The credit union reached peaks in market share as other lenders hunkered down and withdrew in the face of economic uncertainty.

How Doug navigated these times is even more remarkable than Wright-Patt’s continued financial soundness.  He believed an organization’s culture, the performance of the entire staff, was what made strategy successful.

He instilled an expectation  of unparalleled and consistent member service. Credit unions were founded so people can take care of each other. The model is simple: members entrust their funds to you to use for others who need financial assistance.

He took a fundamental human value and made it new every day. He designed the three-stakeholder model-the staff, the members, and the credit union-to allocate resources fairly and most productively.

His intense focus on service as the ultimate differentiator, helped him avoid shiny objects, such as mergers, bank purchases or personal notoriety, that drew in other CEOs.

Member relationships were rooted in a saying he quoted from his dad, “Son, just remember to take great care of the people around you, and they will amaze you in return by taking great care of you”.

The Standard for Success

The majority of Wright-Patt members live paycheck to paycheck. Superior service earns their trust and lifelong support. It also strengthens numerous local community institutions that serve these same 445,000 members, including auto dealers, realtors, home builders, and the many retail services and stores necessary to make communities vibrant.

This member loyalty propelled Wright-Patt’s standing from the 95th largest credit union in 2005 to number 40 at yearend 2021. This was accomplished even though the members’ average share balance $10,044 is below the national average of $10,402.

Doug and his team never chased asset growth.  Instead, their success was measured by the number of people served and community impact. Today the credit union is present in  one of every three households in its Dayton home market.

His oft-stated benchmark for tracking Wright-Patt’s relevance was to ask:  If Wright-Patt did not exist today, would our members rise up and create us? 

Temperament Undergirds Success

Doug is a lifelong learner. Success did not come because he had a better idea than other CEOs; rather it was his skill implementing the credit union’s priorities.  Instinctively he understood leadership as a skill to be mastered. In sports terminology, he would be described as a “natural.”

He is an artisan in the craft of leading others. He took a traditional value-serving others-and made it every staff member’s purpose.  In his perspective, credit unions are a movement of people, not money.

At the top of each monthly Partner Update he placed these words:

“Transparency” is an important part of keeping promises. I hope this update is helpful and makes your job easier. Thank you for your interest in how WPCU is serving its stakeholders

Integrity, openness, and honesty are his operating practices. He is eloquent, using member stories he received to make his points.  The tag line at the end of every Wright-Patt email summarizes the credit union’s value proposition in six words:

“Save Better. Borrow Smarter. Learn a Lot” 

His eloquence is enhanced by his temperament.  He never appears angry; he persuades with logic and examples, not arguments.  His presence fills every occasion with humor and goodwill, qualities that bring out the best in people.

Leadership Contributions Beyond the Credit Union

Doug and his team expanded Wright-Patt’s role throughout the credit union system. He organized, joined or founded numerous CUSO’s including myCUmortgage, CUFSLP, Credit Union Student Choice, Cooperative Business Services, CUSO Financial Services and many more.

He used the financial strength of the credit union to develop a short-term loan option that saved consumers hundreds of dollars in fees charged by payday lenders. This model was eventually adopted by over 100 credit unions sharing in a common loss reserve.

He and his team actively participate in state,  national and CUNA leadership responsibilities.

He is a trustee on the Board of Wright State University which enrolls over 11,500 students.  As Chairman he helped shepherd the university through the most important decision a board undertakes: a presidential leadership selection and transition.

I asked him to join the board of Callahan’s after the Great Recession, anticipating an upcoming CEO succession.  Being a volunteer director in a group of peers is a very different role than the person of final resort as CEO.  Developing consensus with other volunteers can, at times, be hard work.

His commitment was unwavering. His wise, perceptive counsel made our whole organization more aware of how credit unions approached their role with members, in the community and with each other.

A Self-Initiated Transition

Doug enjoys many other personal activities such as biking, skiing, motorcycles, playing in a rock group, scuba diving.  He undertakes these “hobbies” for fun and as open-ended learning opportunities.

He left his CEO position at the top of his game, following the most successful year ever in the credit union, as measured by returns to the three stakeholders.  A courageous choice by someone who sees life full of bountiful possibilities.

His parting was a straight forward announcement in response to my email:

From: Doug Fecher <dfecher@wpcu.coop>

“Thanks for your email. I am out of the office and will not be returning as I am retiring from WPCU after 26 years of service. I will miss this job and the people I’ve been honored to work with and am looking forward to the next chapter in my life.

A successor has been named – please welcome Tim Mislansky as the next President/CEO of Wright-Patt Credit Union. He begins his new role on Monday, January 3rd.”

Doug never forgot where he came from or the people whom he knew along the way—a person of conviction who gave hope and a way forward for others.

He ended a recent conversation with a student interviewing him for her paper on leadership with the offer: “Thanks for connecting with me – please keep my number and if there is any way I could help in the future, please call.”

Talent does an old thing well.  Genius makes an old thing new.  Doug did both.

 

 

 

Posted on

A Reflection on the Anniversary of the January 6th Attack

Today is the one-year anniversary of an attempt to overturn the 2020 presidential election by mounting a physical assault on Congress’ certification of the electoral college vote.

There have been and will continue to be newly researched and passionate reporting about the day’s riot and events before and after.

One well-reasoned analysis is a short essay entitled A Day of Infamy, a year later.

I agree with this viewpoint but want to suggest another lesson. Does a latent January 6th gene potentially exist in anyone in authority? Or are required formal processes and structural checks and balances sufficient to inhibit such leadership temptations?

Everyone Experiences Authority

The crime of Trump and his followers was an attempted coup to overturn  legal and fiduciary  norms of governance and accountable behavior.

Most Americans have or will occupy positions of authority by election, selection or  demonstrated merit.   For example, most households have a dominate wage earner; sports teams-a chosen captain; each church or non-profit–volunteer boards; and coops led by elected directors.

Every public employee, whether by employment or election serves a constituency to which they should be responsible.

Positions of public authority can bring out the best or sometimes, the worst in people.

Bucky Sebastian and Ed Callahan’s decades long relationship showed the vital role of a leader with the right complementary partner.  Ed was an educator, football coach, administrator and powerful motivator–a person skilled in the arts of leadership.

One of Bucky’s important adjunct roles was to be Ed’s “counter-ego,” able to challenge his too emotional reactions to people or situations.  When Ed was tempted to counter someone using direct authority (as a football coach might call out), Bucky would confront him urging he should change his approach versus blaming the other.

Every leader needs a Bucky-like figure when inclined to follow their autocratic instincts in exercising power.

Many adults will achieve authority in an organization through personal ambition and effort, whether that role is paid or volunteer. Once achieved, there is a natural belief in the correctness of one’s judgments whether based on vision, factual analysis or using the rationale-that’s why I was chosen (or elected). 

The Unique Role of Public Servants

This is especially true in governmental employment. Trump’s authoritarian excesses and public delusions are consequential because of the ultimate power and responsibility of the Presidency.  Many believe he subverted the very premise of American democracy with his lies about the 2020 election outcome.

He ignored traditional formal processes.  There were no longer guardrails the public could rely upon.

Whether elected, appointed or selected through competence, public responsibility is always paired with assumed and/or explicit authority.

From parking enforcement, collecting taxes to setting rules and overseeing them, public roles are different in character from private employment.  There is an implied common duty, but often accountability is diffused or lacking.

Regulators of Cooperatives

I believe the Jan. 6th gene is ever-present, latent much of the time, but always ready to be activated in regulatory actions.

The symptoms include unilateral policy diktats, dismissal of inconvenient facts, neglect of administrative oversight, lack of transparency, and most critically, an unwillingness to work mutually with the credit union system.

This authoritarian impulse is most easily seen when those new to the organization first experience the culture.  Mark McWatters joined the NCUA Board in August 2014. He described Chairman Debra Matz’s leadership of NCUA during  in a public speech  several months later:

“NCUA should not treat members of the credit union community as Victorian era children—speak when you’re spoken to and otherwise mind your manners and go off with your nanny—but should, instead, renounce its imperious ‘my-way-or–the-highway’ approach and actively solicit input from the community on NCUA’s budget and the budgetary process. With the strong visceral response within the agency against budget hearings, it seems that some expect masses of credit union community members to charge the NCUA ramparts with pitchforks and flaming torches to free themselves from regulatory serfdom. I, conversely, welcome all comments and criticism from the community. 

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.”  (source: CU Today May 19, 2015)

McWatters is a very conscientious individual, courteous in manner with a rational temperament. He approached decisions using detailed legal and logical analysis.  His reaction to Matz’s autocratic style only corroborated what credit unions had experienced for years, since the Great Recession and unilateral liquidation of corporates.

The irony is that when McWatters became chairman in January 2016, the agency’s “Stockholm syndrome” effect had overcome this initial misgivings. In 2017 he merged the TCCUSF surplus into the NCUSIF to pay for natural person credit union losses, despite explicit congressional wording against this.  When explaining the action, he also admitted circumventing the FCU Act’s limits on premiums.

My immediate concern is that Chairman Harper, who was Matz’s Senior Policy Advisor and protege, also embraces her view of leadership.  He has shown by temperament, in board meeting exchanges, and prior actions as senior advisor, that he is not a person who should be leading the cooperative regulatory agency.

His primary justification for policy is because that is how the FDIC functions. I have described these positions with his own words  in several articles.

At a time when credit unions are transforming their roles with members due to Covid, Harper’s top priority imposed the hoariest and least relevant of all rules, a 28% immediate increase in minimum capital requirements.  Unlike McWatters when confronting the same issue, the current board members blinked and approved this regulatory tax on members and their credit unions.

The Jan 6th Gene and Credit Union Democracy

NCUA’s performance matters because it regulates  one of the unique features of cooperatives—the industry’s democratic, member-owner governance.

The concept that credit unions are democratically governed is misleading.  Few boards are elected today; most continue through reappointment and renominations when terms expire. Members’ involvement is not sought or encouraged. The idea of a contested election with more nominations than open seats is scary for incumbent directors.

Members are routinely requested by CEO’s and managers to give up their charter via merger for a rhetorically better credit union that members do not know and have no part in choosing.  These same “votes” frequently approve significant monetary handouts to departing senior staff who arranged these sales.  In one case over $35 million of self-funding was set up by a former CEO who continues working at the merged institution.

Even the hint of an external director nomination by petition can cause a credit union to change its bylaws to prevent such an occurrence. Pentagon FCU did this immediately after a successful at large nomination.

Credit unions in these actions are following the unilateral leadership style they see at NCUA.

Democratic Practice in National and Local Arenas

Leadership responsibility does entail authority and explicit processes to function.  How that authority is implemented is fundamental to the sustainability of the enterprise. Whether that is the American democratic political experiment, or a cooperative charter founded generations ago.

The fate of America may feel bigger than any one individual can influence.  But democratic norms and duty are not limited to the Congressional and Presidential elections. It is a skill each can hone whenever we participate in an organization’s governance or membership

The first place to ensure democracy remains meaningful is in the arena s of our participations, no matter how great or how small the organization.

As I consider the January 6th assessments, my hope is that anyone who might carry a gene of this kind, will keep it dormant by exercising democratic efforts in those local and national arenas  we care about.

 

 

 

Posted on

Where the New Jobs Will Be This Decade

In an article using the US Bureau of Labor Statistics, the analyst presented the fastest growing and declining job categories in this decade.

The economic health of every community-rural. small town or major urban center-depends on its employment opportunities.

Most credit unions were chartered around places of employment.  Corporations such as IBM or International Harvester had dozens of separate credit unions at their numerous work sites.   Then when the layoffs, restructuring or even bankruptcies occurred, the credit unions had to change their focus or go out of business.

Employment prospects are critical for every member.   Working from home  versus commuting or being on the road is now of interest to more persons  who have experienced this option during the Covid disruptions.

Credit unions are most critical for members when they first enter the work force, earning income and learning to be their own financial stewards.  Some credit unions begin this relationship even earlier with student loan options.

The demographics of job growth affects every one, their communities and  almost all organizations that depend on a vibrant economy.

The table below forecasts where the new jobs will be, their rate of growth, and median salaries.  Each geographic area will have its own pattern.  But this fundamental economic characteristic should be  part of every credit union’s planning process.

The full article includes graphs, a table of the fastest declining jobs (parking meter enforcement) and the implications for education and employer job structures.

Posted on

Counsel for 2022

Several observations on entering the New Year; but  first a poetic note of hope.

 

The New Year 

by Carrie Williams Clifford (1920)

The New Year comes—fling wide, fling wide the door
Of Opportunity! the spirit free
To scale the utmost heights of hopes to be,
To rest on peaks ne’er reached by man before!
The boundless infinite let us explore,
To search out undiscovered mystery,
Undreamed of in our poor philosophy!
The bounty of the gods upon us pour!
Nay, in the New Year we shall be as gods:
No longer apish puppets or dull clods
Of clay; but poised, empowered to command,
Upon the Etna of New Worlds we’ll stand—
This scant earth-raiment to the winds will cast—
Full richly robed as supermen at last!

The Right Attitude  (by John Horvat)

As we enter 2022, we must face a “not-normal” world that shows no signs of returning to order. Having the right “improvise-and-dare” attitude will enable us to survive. It will allow us to exploit any good opportunities to act that come our way. It will mitigate the disasters that strike us.

The Dalai Lama

When asked what surprised him most about humanity, answered “Man. Because he sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived.”

From a review of the Movie: Don’t Look Up (Netflix)

This December release starred Leonard DiCaprio and Meryl Streep.  The story featured two Michigan State academic astronomers who identified a comet heading directly to earth–and the President and public’s response to this “environmental” crisis.  One reviewer’s reaction:

I am alive. I exist. I don’t need to be told that humans will choose what feels good over what is right every time.

Honestly, I spent the movie rooting for the comet.

Shakespeare on Future Forecasts

Prophecy remains elusive, for who yet can answer Banquo’s “If you look into the seeds of time/And say which grain will grow and which will not/Speak then to me.” (Macbeth, 1.3, 58-60).

The Gift of  Enduring Ideas

As we begin 2022, I am in awe of the remarkable  year just past, and how members and communities across the country benefitted from cooperative efforts.

Credit unions from the earliest days of the pandemic stood tall with their presence, their passion and  dedication to service. When the temporary normal returned, they opened up offices with enthusiasm, and understanding—and an unwavering belief in the transformative power of cooperative purpose.

Credit unions ended the year historically strong. They are ready for a new time of  vital caring using  their  unique capacity to combine educational and transactional financial services.

I am eager to share  what I hope will be “enduring ideas” with you in coming months. One writer described this need as follows:

Amid the present insecurity, endearing objects (read high net worth ratios) are not enough. Our desire for certainties must also be addressed by turning to the things that feed the soul. We must turn to enduring ideas to anchor us in the storms ahead.

 

 

Posted on

We the People: A New Year Awaits

In the mid 1990’s, Navy FCU’s annual report theme was, “Our strength is Our Union.”  Today’s message is “Members are Our Mission.”

Both ideas affirm a community’s collective effort to work together.  The idea is as old as the preamble to the constitution, “We the People. . . in order to form a more perfect union . . .”

For 2022 that objective, could be the most important goal for the cooperative system.  Before looking at this challenge another observation must be noted.

Incredible Two Years of Credit Union Performance

In 2020 and 2021, the credit union system recorded two of the most financially successful years in decades.   The double-digit savings growth and continued member expansion were accomplished with zero insurance losses.  The results were achieved despite the sharpest recession ever caused by the abrupt March 2020 national economic shutdown.   And a pandemic that continues to cause disruption in every area of American life.

The cooperative system proved its resilience while responding to unprecedented member needs.

The 2022 Outlook

Projections for the New Year will include the present knowns:  inflation, how long and how strong? Covid’s continued presence; the rise in interest rates; ongoing economic growth; cyber worries and crypto opportunities; the midterm elections; and international trade and political challenges.

In my view these are not the primary cooperative challenges.  Rather the age-old tension between individual success and system interdependence will continue to play out.

For some there is no issue.  Their view is that  responsibility extends only to their charter.  Whatever the management and board decide to do is their business only.  That’s what the members “elected” them to do.

I believe rather that the system is interlinked in multiple ways.  This means  the reputation and example of one, whether good or ill, affects the perception of all.

The concept that coops take care of each other in times of need, includes both the member-owner and the multiple interlocking systems in which all credit unions operate.

Every credit union is open today because of a legacy handed to them and  starting all the way back to the chartering date.  These founders began with nothing but a vision of shared effort for the common good.

Some of today’s “leaders” have interpreted their responsibility the opposite of their founders, that is to return their  members to their pre-chartering state.   And on the way to charter dissolution, help themselves to some of the spoils.

The Cooperative Journey

Credit unions are now mid-way through the fifth chapter of their 112  year evolution.   Each chapter takes about a generation, or twenty five years.  The present  chapter dates from 2009 with the Great Recession.

The journey has always included two challenges.  One set is the externals of the economy, indifferent regulation, competition and ever present technology change.  Credit unions have rarely  been found wanting in meeting the realities of a market based system.

When failure occurs, it is the internal journeys where leaders become lost.   The idea that every members’ bottom line is the credit union’s, is reduced to only  the credit union’s bottom line.  Fiduciary duty  becomes  a  singular focus on financial success.  And when that becomes too challenging, the result is to throw in the towel and turn the members’ future over to another organization with no relationship or history to them.

The 2022  challenge

I believe this year will be pivotal as to whether credit union leaders can once again put member well- being above institutional and personal self-interest.  Can cooperatives restore their roots with the owners whose trust is their real strength, as Navy FCU proclaimed decades ago?

For it is We the People who are responsible for a more perfect union.  That is true for both our civic politics as well as our financial cooperatives.

 

 

Posted on

A Poem and Pop Up Musical Introduction to 2022

Guy Lombardo introduced America to Robert Burn’s poem Auld Land Syne  in his New Year’s eve show broadcast annually from 1929 through 1977.

The phrase “auld lang syne” translates from the Scots language to modern English as “old long since.”  It can be interpreted as “old times, especially times fondly remembered” or an “old or long friendship.”  It readily conjures up feelings of nostalgia.

Auld Lang Syne 

Robert Burns – 1759-1796

Should auld acquaintance be forgot,

And never brought to mind?

Should auld acquaintance be forgot,
And auld lang syne!

     Chorus:
For auld lang syne, my dear,
     For auld lang syne.
     We’ll tak a cup o’ kindness yet,
     For auld lang syne.

And surely ye’ll be your pint stowp!
And surely I’ll be mine!
And we’ll tak a cup o’ kindness yet,
For auld lang syne.  Chorus

We twa hae run about the braes,
And pou’d the gowans fine;
But we’ve wander’d mony a weary fit,
Sin’ auld lang syne.  Chorus

We twa hae paidl’d in the burn,
Frae morning sun till dine;
But seas between us braid hae roar’d
Sin’ auld lang syne.  Chorus

And there’s a hand, my trusty fere!
And gie’s a hand o’ thine!
And we’ll tak a right gude-willie waught,
For auld lang syne.

The English Translation

Should old acquaintance be forgot, and never brought to mind?

Should old acquaintance be forgot, and old lang syne?

For auld lang syne, my dear, for auld lang syne,

we’ll take a cup of kindness yet, for auld lang syne.

And surely you’ll buy your pint cup! and surely I’ll buy mine!

And we’ll take a cup o’ kindness yet, for auld lang syne.

We two have run about the slopes, and picked the daisies fine;

But we’ve wandered many a weary foot, since auld lang syne.

We two have paddled in the stream, from morning sun till dine;

But seas between us broad have roared since auld lang syne.

And there’s a hand my trusty friend! And give us a hand o’ thine!

And we’ll take a right good-will draught, for auld lang syne.

The Musical Version

 Here’s a musical rendition by  the US Air Force Band in a “flash” concert at Union Station in Washington DC during the holiday season.

The 8:50 minute video opens and closes with a jazz arrangement of Jingle Bells.  Auld An Syne becomes a group sing-along at 4:28.  But stay around till the end to see some of the most exciting hip-hop dancing to get your party juices flowing.  All this WW II flash back era sound is pre-covid, of course.  

“https://www.youtube.com/watch?v=khQN5ylb3H0&list=RDkhQN5ylb3H0”

A happy, and entertaining way, to start the New Year.

 

 

Posted on

Life’s Continuing Challenge

Investing More in Yourself-a retired CEO’s observation

“What you should never shy from is the effort you put forward for your achievements.  That includes even connecting the dots between achievement and effort to inspire those around you to reach for more.  Properly showing off your efforts is a good way to encourage others to invest in themselves.

Right now we live in a world in which many too readily  expect achievement without the need or expectation of investing more.

There is an  irony about “more”  for those who do not  examine different levels of  professional effort.  They over estimate the cost of their investment versus its rewards, and their time of opportunity runs out.”

Posted on

It’s a Wonderful Life and a Question for Credit Unions?

A great movie becomes a classic because it informs and inspires not only when released, but also for generations to come.  Frank Capra’s film has been a part of every Christmas season since its release at the end of WWII.

The story resonates because it portrays an individual and a community coming together to create a better life for all.  Because of its  popularity there are continuing efforts to address the film’s relevance today.

The Real Hero: Mary Bailey

Washington Post columnist Monica Hesse argues that Mary Bailey not George, is the actual hero of the story.

Mary deals with the same leaky roof and small-town limitations as her husband with one major difference: She never complains. She doesn’t need an angel named Clarence to descend from heaven and inform her that she’s actually led a wonderful life.

She knows intuitively that wonderful lives are not made by collecting passport stamps or military honors; they are made by investing in the community around you and wallpapering the bejesus out of an old Victorian.

“Why must you torture the children?” she asks George when he takes out his foul work-mood on the family. Why indeed? She’s the one who’s been home all day with a sick toddler and a clanging piano. . .

Once you see it, you can’t unsee it: The entire movie celebrates the personal sacrifices of a nice man while ignoring the identical sacrifices of a nice woman. Why? Because “It’s a Wonderful Life” assumes something that society assumed in the 1940s and sometimes continues to assume to this day: A wife is supposed to sacrifice, buck up, make do, slog through. But when the husband does it, the whole town must take note.

Communities With Pottersvilles

Writer Jared Block suggests the theme of home ownership is a critical area on which America is falling short.  Here is his interpretation: We’re driving full-speed into Pottersville.

George Bailey’s day-to-day goal is simple:

To help every working family own their own home.

“Just remember this, Mr. Potter: That this rabble you’re talking about, they do most of the working and paying and living and dying in this community. Well, is it too much to have them work and pay and live and die in a couple of decent rooms and a bath?”

 We desperately need more George and Mary Baileys — people of goodwill who serve instead of siphon, who are pro-human instead of market-driven, who knit together the fabric of society instead of tearing it apart.

We also need more people to build Bailey businesses — companies that give instead of take, that contribute instead of extract, that cement communal stability instead of undermining its foundations.

Sadly, homeownership will soon be as out of reach for the middle class as it already is for the working poor.  America is not heading toward an idyllic Bailey Park.  

I note one organization estimates America needs at least 7 million additional affordable housing units. At the current pace of 110,000 per year, supply will never meet demand.

The Moral Lesson: One Life Makes a Difference

Another observer asserts we need more of George Bailey’s “ministry” in today’s society.  The film from his perspective:

George Bailey who dreams of leaving his small town of Bedford Falls, traveling the world, and building bridges and airfields and skyscrapers a hundred stories high. But he never does those things because his father dies, he takes over the Building and Loan, and marries the girl next door.

George carries on a one-man crusade against Potter, a cruel, joyless miser who has milked the townspeople dry, forcing them to pay exorbitant rents to live lives of quiet despair in his broken-down tenements

Eight-thousand dollars meant to square the books of the Building and Loan accidentally end up in the clutches of Potter, causing George to fall foul of the bank examiner.

Only the intervention of a bumbling angel named Clarence saves George from taking his own life. To prove to George the value of his life, Clarence allows him to see what the world would have been like had he never been born.

Without the ministry of the Building and Loan, Bedford Falls becomes the twisted creation of slumlord Potter, a dark, hopeless, soul-crushing world of smoky bars and seedy dance halls, pawn shops and peep shows. As for George’s family, without him there, his mother becomes a bitter old woman, his wife an old maid, his uncle an inmate in an asylum, and his brother, whom George had saved from drowning when he was a boy, a corpse.

One life, George learns, touches so many other lives. Far from a failure, his life was the glue that held together his family, his business, and his community. 

The Film and Credit Unions

Some have opined that credit unions are today’s embodiment of  Bailey Savings and Loan.   Led by idealistic, hard working men and women and overseen by volunteers, all of whom are committed to uplifting their members and communities.

The film’s message shows success earned by overcoming personal, financial, economic and competitive challenges. Every credit union still confronts these today.   Including uncaring bank examiners.

The comparison feels relevant for another reason.  It celebrates the role of individuals have within a community.

Credit union’s common bond requirement is simply the identification of an existing group which hopes to improve its well-being by working together.

The feeling of “local” is created when users believe something is theirs.  It is not just a geographic concept, but also a sense of shared purpose.  And there is no more powerful sense of place than when members can own their home.

What makes the film timely is that the same challenges from 1946 exist still for members.  The film’s promise has yet to be realized by many.

The spirit of shared effort is still the most powerful coop advantage in a marketplace where competitive dominance is everyone else’s goal.

In the final scene, the people of Bedford Falls gather around Bailey and his family, donating the money to restore the Building and Loan which helped them achieve their own dreams of freedom, independence, and dignity.

The film poses an ongoing question being asked  today: It’s a Wonderful Life, but for whom? How credit unions respond to that challenge will determine if they are the true heirs of the film’s spirit.

 

 

 

 

 

 

 

 

Posted on

The Power of Local-Where People Meet Face to Face

The number of Christmas cards I received in the mail this year was overwhelmed by solicitations for yearend donations.   They came from near and far: Chevy Chase Rescue Squad (volunteers), theater and dance groups, churches, hospitals and many national organizations from Doctors without Borders, the Salvation Army and Planned Parenthood.

What each tried to do in their appeals was to stress their local consequences. Here is one request from a supporter of our local live theater:

Dear Charles,

I know you have many options for charitable donations during this year’s holiday season. By now, you’ve been flooded with emails, texts, and phone messages asking for your generosity. 

Instead of getting lost in the shuffle, I’d like to tell you why I’ve been giving to Round House for more than two decades and will continue to do so.

For my wife Lorraine and me, it started out quite simply: we wanted to support a local theatre serving our community both artistically and educationally. Round House stood out because it was right in our backyard, doing quality work, and truly impacting the community. 

Through our giving we have been able to help not only in Round House’s growth but also in enhancing Bethesda and the greater DC area—a place we have loved and been a part of for so long.

I am incredibly proud of how Round House has confronted the many challenges of the pandemic—from being one of the first theatres in the country to pivot to virtual productions and continuing education programs online to safely returning to live performances and in-person classes with robust covid protocols and viewing options in place to protect artists, patrons, and staff.  

Despite all that has happened in the world over the last two years, Round House has remained resilient and continued to be an asset to this community by offering bold, outstanding theatrical and educational experiences both virtually and in-person.

Your contribution helps Round House be a theatre for everyone and continue making an impact in the community. 

The Advantages of Local

Local is about connections, being involved with people where they live, work and play.   The impact is not limited by geography, but is rooted in people’s ability to see their organization at work.

Writer Nick Wolny who promotes online business effectiveness, has written about the lessons from brick and mortar, what he calls the entrepreneurial efforts of the “Original Gangster” (OG) firms.

My first job when I was 16 years old was working at a bakery. I was slingin’ scones and washing dishes until my fingers were pruned.

The owners were a husband and wife. The husband baked all the bread. 

We lovingly called him “Bread God”.

This guy was at the shop at 3:00am to start the breads… seven freaking days a week. 🥖

And he did it with a smile. 

In the years that followed – and eventually when I came to have my own business as well – 

Reminding myself of the brick-and-mortar hustle kept me honest and focused.

It’s easy to cut corners as an online entrepreneur.

In his article Four Insights Creators Should Steal from Offline Business Owners, he describes the advantages of local presence for which there is no on-line counterpart.  He closes the article:

In its current iteration, the creator economy has existed for about ten-ish years. Meanwhile, brick-and-mortar business owners have been grappling with the fundamentals of business for centuries. We could learn something from what they prioritize.

Credit unions have existed for 112 years.  Their virtual strategies for two decades.   How credit unions sustain the advantages of local while expanding online transaction capabilities is the critical investment decision all will continue to confront.

Posted on

60 Degrees on Boxing Day

Yesterday was bright, sunny.   Nature smelled fresh from overnight rain.

Today morning snow flurries.  Grey and somber.

Time for more Christmas songs and winter poems.

Velvet Shoes

by Elinor Wylie (1921)

 

Let us walk in the white snow
In a soundless space;
With footsteps quiet and slow,
At a tranquil pace,
Under veils of white lace.

 

I shall go shod in silk,
And you in wool,
White as white cow’s milk,
More beautiful
Than the breast of a gull.

We shall walk through the still town
In a windless peace;
We shall step upon white down,
Upon silver fleece,
Upon softer than these.

We shall walk in velvet shoes:
Wherever we go
Silence will fall like dews
On white silence below.
We shall walk in the snow.