Michael Beall, CXO, CU Strategic Planning
When a Community Development Financial Institution (CDFI) credit union needs a new CEO, it’s not just hiring a leader. The members are entrusting someone with a legacy of member service, economic impact and innovation.
With decades of experience in the credit union movement and a long track record of helping CDFIs grow and thrive, I have seen and heard the good and bad of executive recruiting.
For example, a good executive recruiter will approach the placement as far more personal than a search. It’s a relationship-first process rooted in values, trust and purpose.
CDFI credit unions aren’t typical financial institutions or even typical credit unions. Their lifeblood is expanding economic opportunity in underserved communities and removing systemic barriers to financial well-being. Their leaders must be both visionaries and doers. They must be comfortable making tough decisions with precision and saying ‘yes’ as often as possible. At the same time, the CEO must remain grounded in the credit union philosophy of ‘people helping people.’
That’s why the process doesn’t begin with a job posting: It starts with listening.
Aligning Leadership With Purpose
Executive searches aren’t just about filling roles but about aligning missions. That’s especially true with CDFI credit unions, where a misalignment at the top can have outsized consequences for not only the members and the community but also the employees.
Over the years, we’ve seen boards grapple with the challenge of finding a leader who understands the balance between growth and social impact. The right candidate will possess the financial acumen, emotional intelligence, and personal commitment to the credit union’s community development mission.
That level of alignment takes time. And it should.
Most successful executive searches take six months or more. The process must be thoughtful and deliberate.
Trust and Transparency in Executive Search
Effective recruiting for mission-driven leadership isn’t about collecting résumés or strict adherence to a process. It’s about building relationships with boards, search committees and executive candidates.
We invest significant time early in the process with credit union boards to understand what they need and value. That means diving deep into strategic plans, culture, leadership gaps and long-term objectives. We often help boards articulate their priorities they hadn’t yet put into words. This can manifest in matters like preserving a unique member experience or balancing CDFI priorities with operational sustainability.
The same care goes into working with candidates. Especially for first-time CEOs, the transition can be overwhelming. Many candidates experience emotional ups and downs throughout the process. That includes candid coaching on how to position themselves, present themselves genuinely while highlighting their strengths, and prepare for the intense scrutiny that comes with the corner office.
But just as importantly, I ensure that every candidate feels seen, heard and respected. If the match isn’t right for them, it won’t be right for the credit union either.
What Makes CDFI CEO Searches Different
CDFI credit unions operate with an added layer of complexity, regulation and opportunity. Their leaders must have a general understanding of community reinvestment, impact reporting, grant compliance and inclusive lending practices. That’s on top of managing the daily demands of running a financial institution.
You won’t find those capabilities on every résumé. Identifying candidates with transferable experience, emotional intelligence and a true belief in the mission requires assessing how a candidate will perform on the team and in the boardroom.
We also help boards get comfortable having transparent conversations about leadership values early on. For example, how a candidate approaches social justice and diversity isn’t peripheral to the role—it’s quintessential. These aren’t just culture-fit questions—they’re required for leading a modern CDFI credit union.
Negotiation as Strategic Dialogue
One of the most misunderstood phases of CEO placement is negotiation. Many candidates get whiplash from the excitement of being told you’re the top choice and then moving straight into salary, benefits and contract terms.
The right recruiting partner can make all the difference. A fair, trusted mediator during negotiations helps the board and the candidate navigate the process openly and confidently.
Expectations must be clear. That includes not just compensation but also working relationships and how success will be defined. When done right, negotiation becomes the start of a strong working relationship and not a source of friction.
Success All Around
We love to hear from boards a year after placing a CEO that they’ve reinvigorated the team, improved financial performance and deepened community impact. That’s what everyone involved is after. The new hire worked out, and the credit union thrives because the right person leads with clarity and conviction.
Every search is different, but the common thread is this: CDFI credit unions deserve leaders who understand their why. And those leaders deserve a recruiting process that helps them rise to the occasion, not just fill a title.
Let’s talk if your board is preparing for an executive transition, especially at a mission-focused credit union. We live and breathe CDFIs every day, and we’d be honored to conduct your credit union’s search.Click here to contact us today!