Sharing the American Dream Credit Union Perspectives on Leadership Credit Union Executives Society Credit Union Executives Society Foundation Madison, Wisconsin Edited by Michael Muckian Editorial assistance: Sue Baranowski Beth Stetenfeld Bruce Shawkey Copyright 1986 by the Credit Union Executives Society. All rights reserved. No part of this book may be reproduced in any form without written permission from the publisher. Published by the Credit Union Executives Society, P.O. Box 14167, Madison, Wisconsin 53714. Telephone number (608) 271-2664. For further information or additional copies, con- tact Society headquarters. Cover by David Zentner Editor's Note Had you asked me prior to this assignment what elements make up a good credit union executive, I prob- ably would have said things like training, education, market awareness and management professionalism. While that list is good as it stands, it doesn't begin to tell half the story. I found that out as I began working with the manuscripts for this volume. All of those things I mentioned, along with the abilities to motivate employees, interact with board members, master the new technologies and devise brilliant strategies, are becoming more important as the days go by. But they're just elements, asides, "frosting on the cake," if you prefer my mother's favorite expres- sion. At the heart of the matter lies a genuine concern for human beings and the commitment and desire to serve. That's what really separates credit union execu- tives from the other financial professionals, what sets them apart and, in my opinion, a little ahead of the rest. It's their sensitivity to human need, coupled with their professional ability to serve those needs, that makes them more than just another moneylender. I knew that element of caring was present before I started this project. What I didn't know was exactly how much of a driving force it was in the life of each and every contributor. No matter what the subject or spe- cialty, each one of the authors you're about to read stresses the importance of member service and, more im- portantly, compassion for people's needs. I admire that in them. It made the editorial task much easier, and in- stead of a time-consuming assignment, I feel I've had the pleasure of making 14 new friends. Thanks to each and every one of you for showing once again that the principles behind credit unions are indeed alive and well. — Michael Muckian Table of Contents Forward by John F. Buddle ............................................................................ 3 Chapter 1 Credit Unions— A Working Definition, A Philosophical Perspective by Jack A. Mitchell........................................................................... 9 Chapter 2 Sharing the American Dream by Louise McCarren Herring ........................................................ 21 Chapter 3 The Heart of the Credit Union Philosophy by Perry M. Dawson ...................................................................... 43 Chapter 4 Legislation and Regulation — the Difference Paradox by R. Adm. Joe G. Schoggen .......................................................... 55 Chapter 5 The Changing Faces of Credit Union Members by Larry T. Wilson ......................................................................... 73 Chapter 6 High Touch/High Tech — Enhancing Member Services by James L. Bryan ........................................................................ 87 Chapter 7 Managing Financial Services as if People Mattered by Thomas E. Allen .......................................................................101 Chapter 8 From Volunteer to Director — Building a Better Board by John R. Stephenson, Jr. ............................................................125 Chapter 9 Facing the Future by Edward A. Baranowski ............................................................ 139 Chapter 10 From Manager to Executive—the Importance of Continued Professional Commitment by H. C. Klein ............................................................................... 157 Post Script by Mike Welch............................................................................................................... ......... 169 Dedicated to all credit union executives who over the years have helped their members share the dream of personal financial independence. 1 John F. Buddle is chairman of the Credit Union Executives Society and CEO of CUNA of Ontario Credit Union Ltd. First elected to the Society board in 1977, he became chairman in November 1984. During his years on the board, he has been involved with the creation of the Financial Mar- keting Association, the Financial Operations Association and the Society Foundation. He is the first chairman of the Society from District 5 (Canada, Australia, Ireland, New Zealand and Puerto Rico). Forward by John F. Buddle t's a privilege for me as chairman of the Credit Union Executives Society, in its 25th anniversary year, to participate in the Iproduction of Sharing the American Dream. I have been a part of the credit union industry for 29 years, and it's a pleasure to acknowledge and celebrate the Society's quarter century and to look forward to even brighter and bolder horizons for the future. I believe that effective communication is of para- mount importance to the success and continued growth of any industry. That is particularly true of credit union people. They have always been recognized for their shar- ing of ideas and innovations for the benefit of all. Others compete while credit unions cooperate. Our philosophy has been "people helping people," and that unique approach in the financial services field has long been a factor in our favor. This volume is a lasting way to celebrate our renewed commitment to professionalism in the credit union in- dustry as part of the Society's "Year of the Credit Union Professional." It documents our history and offers future perspectives gathered from a wide-ranging cross section of today's most knowledgeable people. Their insights and experiences will benefit others in the pursuit of increased expertise. It seems quite in keeping with our philosophy that this book should be multi-authored. Collectively, our group of authors have hundreds of years of firsthand credit union experience. In the following pages, they share their views in a pragmatic way about a host of vital issues. All topics of interest or concern could never be covered in a single volume, of course, but this book is far more than simply a "potpourri" of ideas and tech- niques. It deals effectively with today's current issues and tackles future directions head-on. I am very proud to contribute the forward to Sharing 3 the American Dream. As a Canadian, I share much with my friends to the South. In addition to our common borders and language, we have the same roots and democratic ideals that have kept our nations intertwined in friendly harmony throughout our histories. My association with the Credit Union Executives Society has also been a sharing experience for me of over 20 years. Through conferences, seminars and a variety of publications, and especially through personal contact with my peers, I have learned much and kept abreast of the developments both inside and outside my profession. In the next 25 years, I know that the Society will strive to meet the needs of even greater numbers of members, and will broaden the scope of credit union professionals beyond their local peer groups toward a more global community. As credit union professionals, our primary interest will always be to help our members in their pursuit of finan- cial growth and independence. To that end, the Society is dedicated to improving the professionalism of its members. A book such as this is yet another way we share our skills with both volunteers and professionals, inside as well as outside our industry. The fact that it's co- sponsored by the Credit Union Executives Society Foundation shows the concern that not only members, but the public at large, become aware of the tremendous advantages of credit unions. I believe that Sharing the American Dream will prove invaluable as it draws on a broad spectrum of talents, and will give its readers a very complete picture of the credit union movement; past, present and future. The Society feels a special responsibility to the credit union community. This work is but one more means of meeting that essential responsibility. But books don't write themselves. "Who casts to write a living line, must sweat, " wrote Ben Jonson. For this book, many people have sweated. I'd like to thank them, one and all. What is "the American dream" and who shares it? In its broadest sense, the dream was verbalized by Abraham Lincoln in his Gettysburg address in 1863. "It is for us . to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced . that government of the people, by the people, for the people, shall not perish from the earth!" Of the people, by the people, for the people — just what credit unions are all about. All Americans, and by extension, all democratic people throughout the world, share in the belief that everyone, regardless of race, color, creed or 4 any other difference, has an equal opportunity to ad- vance him or herself. To me, Lincoln is the embodiment of that dream. The credit union dream is much the same. Our mem- bers share equally the opportunities provided for them by their credit unions to grow and prosper in financial independence and security. Some dreams are, however,