GC Insights

Every leadership team has a unique approach to risk. Some lean towards caution, while others embrace it head-on. This inherent "center of gravity" significantly influences how teams make decisions, especially in today's rapidly changing financial landscape. In this article, we'll explore the concept of risk profiles and how understanding your team's tendencies can lead to more effective risk management and ultimately, greater success. Two Sides of the Same Coin: "Wary" vs. "Composed" Imagine two teams facing the same challenge: transitioning to a digital-only banking model. Team Wary approaches the situation with caution, meticulously analyzing every potential risk and intricately planning each step. While this thoroughness can be an asset, it might also lead to indecision and missed opportunities. Team Composed exudes confidence and readily tackles the challenge head-on. Their optimism and decisiveness are valuable, but they might overlook c

In the fiercely competitive financial services landscape, credit unions face the ongoing challenge of not just surviving but thriving. Strategic planning, goal alignment, and performance measurement are more critical than ever. As a credit union CEO, you're tasked with steering your organization towards ambitious goals while ensuring a clear path to achieving them. This is where Objectives and Key Results (OKRs) can be your compass. OKRs offer a powerful framework for driving focus, fostering alignment, and enhancing accountability across the credit union. By integrating OKRs into your culture, you can unlock a new level of performance and gain a sharper competitive edge. Understanding OKRs Let's start with the basics. OKRs consist of two main components: Objectives: These are the overarching, qualitative descriptions of what your credit union aims to achieve. Think of them as your "north star" – ambitious, action-oriented, and aligned with your mission and vision. O

In today's competitive financial landscape, credit unions face the ongoing challenge of differentiating themselves and fostering strong relationships with their members. While factors like interest rates and product offerings play a role, the human connection forged through emotional intelligence (EI) can be a powerful differentiator. Understanding Emotional Intelligence EI encompasses a set of emotional and social skills that influence how we perceive and express ourselves, build relationships, manage challenges, and utilize emotional information effectively. It's more than just empathy; it's a comprehensive framework for leadership strength and competency. The EQ-i 2.0 model, a widely recognized framework, outlines five key components of EI: Self-Perception: Understanding one's strengths, weaknesses, and emotional triggers. Self-Expression: Communicating thoughts and feelings constructively and assertively. Interpersonal: Building and maintaining trusting relationship

It's no secret that communication is key to success in any organization. However, for credit unions, effective communication is especially critical. Not only does it help to build trust and relationships with members, but it also plays a vital role in ensuring the smooth operation of the business. In fact, poor communication can lead to a host of problems, including decreased productivity, increased employee turnover, and missed opportunities. What Is Effective Organizational Communication? At its core, organizational communication is the sharing of information within an organization. However, to be truly effective, it must go beyond simply transmitting data. It must also foster understanding, encourage collaboration, and support decision-making. To that end, there are four key elements that should be present in any credit union's communication strategy: Keep employees well informed. This means more than just sending out memos or holding occasional meetings. It requires a proac

Is your credit union truly competent in a way that sets you apart? Unfortunately, many credit unions today struggle to identify and leverage a distinct core competence. As original common-bond sponsorships have diminished, operational costs have risen, and business models have become fragmented. While credit unions generally perform well, their focus is often diluted across competing priorities, hindering the development of a truly leverageable competence. This article will help you identify and leverage your credit union's core competence to achieve long-term success in an increasingly competitive market. Understanding Core Competence Competence is the ability to do something successfully and efficiently. However, true organizational competence goes beyond mere efficiency; it requires a strategic focus on a specific business model that aligns with your strengths and market opportunities. Drawing from Michael Treacy and Fred Wiersema's "The Discipline of Market Leaders,&qu

As a credit union board member, you hold a position of significant responsibility. It's essential to have a clear understanding of your role, the board's overall purpose, and the boundaries between governance and management. Yet, these fundamental aspects often remain unclear, leading to confusion and potential risks. In this article, we'll explore how adopting a principles-based governance model can bring clarity and structure to your board's operations. We'll discuss the risks associated with current, less defined governance processes and the advantages of a more formalized framework. By implementing this model, you can enhance your board's effectiveness, mitigate risks, and ensure the continued success of your credit union. The Risks of Ambiguous Governance Many credit unions have governance documentation in place, but it's often fragmented and disconnected from actual practices. This lack of a structured framework can lead to several issues: Outdated Pra

As a credit union chief executive, you understand the pivotal role a high-functioning board plays in your institution's success. It's not just about fulfilling legal duties; it's about fostering a culture of strategic thinking, collaboration, and member-centric decision-making. The Cornerstones of Effective Governance Your board's responsibilities extend far beyond the basics. To truly excel, they must: Champion Effective Governance: Ensure that your credit union operates with transparency, accountability, and in the best interests of your members. Empower Member Participation: Create avenues for meaningful member involvement in governance. Steward Member Capital: Make prudent financial decisions that safeguard and grow your members' investments. Guide Strategic Direction:   Actively engage in strategic planning, monitor progress, and hold leadership accountable. These responsibilities, adapted from the Organisation for Economic Cooperation and Development (OECD),

As a credit union chief executive, you understand the importance of a clear and robust business model. In this article, we'll explore the key components of a successful credit union business model and provide actionable insights on how to optimize yours for maximum clarity and performance. Why Business Model Clarity Matters While credit unions are often referred to as non-profits, they operate as not-for-profit cooperatives. This distinction is crucial because, like any business, credit unions need to generate profits to build capital and ensure long-term sustainability. A well-defined business model clarifies how your credit union will achieve this. Furthermore, a clear business model mitigates the risk of failure. The decline in the total number of credit unions underscores the importance of a strong business model. Many credit unions that have failed had poorly structured business models that created risk and ultimately eliminated profitability. Understanding Business Model Stru

Consistency is a defining characteristic of successful brands like Starbucks, McDonald's, and Southwest Airlines. These companies deliver a unified experience regardless of location. While they may face occasional challenges, their consistent brand identity and unwavering commitment to their core purpose allow them to weather storms and outperform competitors. Consumers value this reliability, and these brands have earned their loyalty. What distinguishes these successful brands? They have achieved structural alignment, where their organizational structure, processes, and strategies seamlessly support their core mission. In contrast, their competitors often struggle with misalignment, where strategy and execution are disconnected. Consider the example of a full-service airline attempting to compete with Southwest by offering more amenities at higher prices. Their advertisements may promise personalized service and comfort, but the reality of cramped planes and limited amenities con