The greatest danger for credit union leaders today isn’t external competition; it’s the comfort zone quietly eroding innovation and momentum.
Jackie Brown, Founder, Shifting Success
After years of working hard on the front lines, many dedicated credit union staffers earn a promotion into management and leadership. They settle into it, finding there’s a rhythm that feels pretty good. And before long the meetings are on repeat, the same metrics get measured, and even the office politics has found a cycle. Everything feels steady, predictable, even safe.
Sounds pretty good for a financial institution, right? A steady, predictable, safe and secure environment to keep their members’ money safe.
But that rhythm can get so cozy, it rocks some leaders to sleep, lulling them into complacency. This comfort zone can then become a barrier that slows growth, innovation and a lasting legacy.
What if this slow and steady approach leaders are protecting is the thing that’s holding them back?
The paradox of safety and security
So, what’s the trouble with a slow and steady approach? Isn’t that what members want in their financial institution – one that is careful about decisions and risks?
While safety and security build member trust, clinging too tightly to these ideals can paralyze decision-making and stifle innovation.
While slow and steady might have been beneficial for financial institutions 30 years ago (when most current leaders were just starting in their careers by the way), the pace of the industry now demands a more agile and innovative approach.
Challenges that come from comfort
The industry is starting to see the downfalls of staying too comfortable. Mergers and acquisitions, regulation challenges, failed succession planning – these impacts and more were raised just last year at the World Credit Union Conference as well as other industry events and publications.
A recent credit union merger saw more than 60% of the original team resign within a year, citing a lack of vision. This isn’t an isolated case; you likely know of credit unions facing similar situations. This is a symptom of the comfort zone crisis in leadership and shows that even in a supposedly bold move like a merger, many leaders are afraid to take bold steps.
Fintechs and banks are hungry for the credit union market and its members. These organizations have no problem balancing safety and security with risk and innovation. Their leaders don’t just embrace change; they lead it. They build confidence, strengthen resilience and adopt a growth mindset.
It’s way past time for credit union leaders to do the same.
Operations vs Mindset
Promoting leaders based on their performance in the branches or back office seems logical. It’s easy to measure goals.
What’s harder to measure is mindset. It can be challenging for a supervisor to objectively identify attributes like being comfortable with change, resilience and determination in the face of adversity.
Focusing on performance results in a very knowledgeable leadership team, but one that might be more comfortable staying in that operational environment. These leaders are great at bringing efficiency to processes yet might be so comfortable in this space that they avoid areas that could expose supposed weaknesses. They want to be seen as experts, the go-to person for problems. For many leaders, stepping into the unknown feels like exposing a vulnerability they’ve carefully hidden, yet this very vulnerability is what fuels growth and transformation (see Brené Brown’s research on vulnerability).
A New Credit Union Leader
It’s no secret that there’s been a mass exodus of credit union CEOs and other executives as baby boomers retire. This has brought about an unprecedented number of mergers and acquisitions as the lack of succession planning comes to light. But what this also brings up is the opportunity for Gen X and millennials to step into leadership roles with a fresh approach – one that focuses on a growth mindset, innovation and true leadership.
Leadership that is bold, smart, resilient, creative.
This new generation of leaders will free themselves and their credit unions from the mediocrity trap to unlock the potential of member-owned financial institutions.
They will harness the power of that community to increase human connections. Connections become especially more powerful as artificial intelligence, automation and digital environments continue to expand.
What it takes to develop that leader
This new type of leadership needs a new type of development – beyond the typical manager training that’s usually focused on giving feedback and leading teams.
This also requires a new type of environment – one that embraces innovation and experimentation.
Imagine what a credit union could look like when these ideas are put into practice:
Shift from maintaining to innovating:
Psychological safety is a trending topic for a reason. Experiments, testing and new ideas based on research are all key to growth beyond the comfort zone.
Invest in Personal Development:
Focus on leadership training that emphasizes emotional intelligence, resilience, and decision-making under uncertainty.
Align Goals with Purpose:
Revisit the credit union’s mission to connect leadership decisions to impactful member outcomes.
Empower Teams to Act:
Cultivate confidence across the organization by rewarding initiative and celebrating learning from failure.
Credit union leaders have an incredible opportunity to drive meaningful change while staying true to their mission. It’s time to move beyond coasting and embrace the confidence to take risks—not for the sake of risk itself, but for the potential impact. A small but meaningful shift in mindset can transform not only the organization but also its influence on members and communities. Imagine what your credit union, your career and your impact could look like once you step out of your comfort zone.
Would you like to connect with Jackie? Reach out to her at jackie@shiftingsuccess.com.