Carma Parish, 30 Under 30 member, Perfect Circle Credit Union
On September 27 I will receive the “Emerging Leader” award at the Chairman’s banquet for the Indiana Credit Union League. While I do believe this is a great honor I can’t help but think of the greatest honor which, in my mind, is to be named credit union executive. Come on…all you 30 under 30 musketeers reading this know you dream of the day of being a CEO (well some of you already are). With my boss just celebrating her latest 50-something birthday I can’t help but think about all those succession plan articles I’ve been reading the last few years. Even our board is talking about one. So I wonder … could I be part of their conversations? More important, am I ready?
Not at all. Crap.
There it is. I’m not ready.
The truth is while I think I’m pretty good at what I do I don’t think I’m prepared to be a CEO. Why not? I could sit here and tell you all the reasons why I personally am not ready and where I need to step it in high gear but let’s focus on someone or something else for the sake of my ego.
We have strong leaders all over the credit union industry. There are baby boomers that have been in the movement for more years than I’ve been alive and are still emerging as a leader; which is a good thing. However, how many of those leaders have a leadership development program in place for the younger leaders within their credit union? How many credit unions are putting as much care and investment in their leadership development programs as they are in their succession plans?
An overwhelming number of these leaders, who will supposedly be retiring in the next 5-10 years, have failed to pass on their own knowledge and credit union life lessons to the next generation of leaders who are sitting in the office just two doors down. Instead they’d rather pay for them to sit in a hotel listening to consultants talk about leadership in generic fashion and who have no idea of the realities of leading their credit union or any credit union in most cases.
Mike Welch, former and famous Credit Union Times publisher, has written several articles about how credit unions are focusing too much on succession plans and not enough on leadership development programs. I agree.
Believe it or not the unemployment rate will drop again and when it does will your emerging leaders who have not been engaged as tomorrow’s potential CEO’s go somewhere else when the opportunity knocks? Will they be swept up, not always with the promise of being the next CEO, but just the simple idea of a formalized program that will support and develop their skills as tomorrow’s executive? I might be.
I found it interesting that the Filene Institute just recently sent out a letter to credit union executives asking them to take part in an internship program for students from elite schools because of the growing need for tomorrow’s credit union executives.
It’s easy to understand that these Ivy League students come with a higher IQ and better education than I’ll ever have. But will they come? Credit unions aren’t exactly Teach for America. And what does this say about those credit union youngsters, like the 30 under 30, who feel they have what it takes and yet see little push in the industry to develop our skills. What is the #1 attribute you look for in a credit union CEO? Is it brains? Passion? Innovativeness? Only individual credit unions can answer this, but I’m happy to report that my boss handed me that Filene paper and said it wasn’t in the school they attended.
As emerging young credit union leaders, our biggest fear is that we will be passed up or worse, overlooked, for a CEO role because our credit union has failed to recognize or develop our potential. Credit union boards should not ignore the need for a succession plan but rather demand a formalized leadership development program to support it.
So I’m ending this piece by taking my own advice. I have written my own leadership development program, with timeline, and just took the first step in Stage 1 of my plan. See how easy that was.
Comments
5
Great post, Carma. Was writing this post the first step? If not, what was?
Also, I wholeheartedly agree with you about the uncertainty implicit in recruiting MBAs into credit unions. Believe me, I’m living the uncertainty as we try to convince CEOs just to make a place for an intern in their budgets.
I also suspect that even if we’re wildly successful and march a phalanx of MBAs into the credit union system, that will only be one thread in the cord that lifts a successful credit union industry.
The other threads have to be spun at individual credit unions.
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Actually the first step is to get my MBA. Family has been priority for my husband but now that he’s Mr. Mom I can focus more heavily on my 5-year career plan. I made an appointment with the university to get registered for my MSM degree. I can’t expect to be in the running without it.
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Your points are very valid and I think the bigger more global question is why are boards not understanding this urgent need. By finding diamonds amongst our staffs we have the ability to hopefully cull the folks who want to convert the CU charter and also truly understand the difference. I was fortunate enough to have a board take a chance on a 29 year old new CEO but I had extensive credit union experience.
Was I ready…no, would an Ivy Leaguer be ready….no, the role is something you slowly break in like a pair of shoes. The more often we see credit unions converting their charter for management and board gain, I’m always suspicious of where did that CEO come from and often you’ll find the sheep’s clothing of a banker.
Training and college may produce a pedigree but from a personal standpoint it rarely creates a passion or understanding of the people helping people credo. Find those leadership opportunities and exude your passion for what is in the best interest for credit unions and your time will come.
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Great post, Carma. I agree that CU’s need to look within for who might be an emerging leader. Many might already do so for positions lower on the ladder, but are not thinking about potential employees who could jump a rung or two (regardless of age or seniority). Congrats on starting your plan!!
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The federal stimulus package is designed to create millions of jobs, but it also provides many benefits to those who just can’t find work. A growing number of people are depending on unemployment benefits, with continuing jobless claims hitting a record. Indiana unemployment has taken a hard hit, as Indiana unemployment funds have run out. The funds for Indiana’s unemployment are about to hit zero, and payday loans aren’t going to be enough to stave it off. The economic stimulus package was supposed to extend the aid for people that are currently looking for work, but this provision has likely made the ills of Indiana worse, as lawmakers are frantically trying to find a solution to their unemployment insolvency. Tennessee and West Virginia are attempting to increase revenue, as they will face shortfalls within a year without intervention. They fear the fate of running dry like Indiana unemployment funding.
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