Jan 01 2000

Mission Values and Leadership Styles In Credit Unions

Report  
Number  
54

A look into how credit union CEO's importance of mission value and leadership styles impacts business operations. 

Ramon J. Aldag
University of Wisconsin-Madison
David Antonioni
University of Wisconsin-Madison
Report Number 54

Executive Summary

As credit unions grow and change, executives express concern over the extent to which credit union values may be changing, how they may be changing, and what effect these changes have on the future direction and well being of the credit union community. This study of 454 credit unions aims to answer these questions and respond to these concerns. The study also provides information on CEO leadership styles and their connection to values.

What is this research about?

Credit union CEO's were asked to rate the importance to their credit union of 28 statements of value. They were also asked to rate the extent to which their credit unions practiced each of those value. The study then ask CEO's about the extent to which they agreed or disagreed with certain statements regarding philosophy and values. Lastly, CEO transformational behaviors were assessed by direct reports. The research examined how CEO characteristics and credit union characteristics impact CEO leader behaviors, mission values, philosophy, and perceptions, and how those variables in turn influence such outcomes as direct report satisfaction and extra effort, effectiveness ratings, and Capital-Asset Quality-Earnings (CAE) scores.

What are the credit union implications?

This research showcases how mission values and leadership styles of credit union CEO's impact operations. Most importantly, it provides a basis for healthy discussion and more informed strategic thinking about how credit unions can nurture their core values and adapt them to fit the rapidly changing financial services landscape.

This report is sponsored by the Center for Credit Union Research at the School of Business, University of Wisconsin-Madison.