Brian McDonnell Walked Softly With That Big Stick

Up until a few days ago, Navy Federal Credit Union CEO Brian McDonnell, 60, was in that big group of credit union CEOs reportedly slated to reach retirement age in the next five years. But to almost everyone’s surprise (his wife wasn’t surprised) he decided not to wait. He caught his board of directors and the rest of the credit union industry completely off guard by announcing at the last regular Navy Federal board meeting that he had decided to hang it up as CEO of the world’s largest credit union at year-end. What a shame. McDonnell’s unexpected early departure will leave a big void. Not only at the credit union where he served loyally for 35 years in one staff capacity or another, but throughout credit union land where he is highly respected for his achievements and for his courage and willingness to readily articulate his views and his willingness to put his money where his mouth was. His outstanding accomplishments (tech innovations, leading edge products and services, expanded delivery systems like online banking, asset growth, etc.) at Navy Federal during his eight-plus years as CEO have been well documented in this publication. So have been his strong feelings on everything from credit union trade group actions (or lack thereof), governance, and private insurance, to credit union philosophy, regulations, and field of membership expansions. As one who has been on the receiving end of his well-crafted letters more than once, I can tell you the man was unparalled for making a case for his views. He would frequently begin such letters by stating that he knows better than “to get in a debate with someone who buys ink by the barrel.” Then he would go on to say that “this time your blather has gone too far” or some equally colorful term of endearment. Needless to say, these salvos led to spirited conversations whenever the occasion presented itself. For the record, McDonnell was also never reluctant to admit he was wrong. But also for the record, he rarely was. A case in point involving this publication: At a CUNA GAC meeting a couple of years back, McDonnell confronted the Credit Union Times editor to pay a compliment and give a zinger at the same time. To paraphrase, he said, you have by far the best credit union publication, but you are getting badly beat by the competition on your daily news Web site. About a year later, after many Credit Union Times Web site improvements, McDonnell admitted without prodding to that same editor that this publication was now by far number one in that important news dissemination venue as well. It never mattered to McDonnell if he had little or even any support for his views. Nor did he concern himself with the fact that some positions he took did not endear him to one or more segments of the credit union industry, sometimes even to his own board. McDonnell always felt in his heart that he had solid reasons for his stances. If he stepped on anyone’s toes (which he surely knew he would do) he had other things to worry about. Like the future of credit unions. Like how to serve his couple of million (and growing) members better. Like finding ways to turn an 18 year-old enlisted sailor into a lifetime member of Navy Federal. Like taking good care of his hundreds of employees. If God had created a stereotype of what the CEO of a $22 billion credit union should look like, it wouldn’t even come close to resembling McDonnell who would be hard to pick out in a crowd. He doesn’t jump up and pontificate at meetings. In small group discussions he is polite to a fault. And attentive to others comments. He definitely fits the description of low key. But looks can be deceiving. In reality, he may have walked softly but he did indeed carry a big stick. Here’s a guy who immediately demonstrated when he moved up to the top staff spot that he knew how to make an already great credit union even better. The awards and accolades bestowed on his credit union during his time at the top are too numerous to even mention from “Best Place to Work,” to “Leading Provider of (pick a product or service category).” And bigger, too! At $8.7 billion when he became CEO, Navy Federal was already way out front as the largest credit union in the world. A little over eight years later, that number has almost tripled at $22 billion. And increased assets don’t begin to tell the whole story. One of many tributes that could be paid to McDonnell is that despite the fact his credit union is larger than thousands of banks, and despite the fact that one of the favorite complaints by banking lobbyists is that credit unions have become too big, the banking industry never cites Navy Federal Credit Union as an example to make their case. That’s no accident. McDonnell, and frankly his predecessor CEOs all worked hard (and successfully) at positioning Navy Federal Credit Union as the world’s largest small credit union. Banking industry critics are hard pressed to find something to complain about regarding how Navy Federal does business. It must kill them to sit by idly and watch that credit union grow in every category important to any financial institution. What makes McDonnell’s achievements all the more remarkable is that he followed some very good previous Navy Federal CEOs. But history will show that his legacy will be that he was the very best CEO the credit union ever employed. Like a handful of other credit union luminaries, McDonnell will be hard to replace. But he will be. Who will it be? I won’t give readers a name but I will remind them that most past Navy Federal Credit Union CEOs came from the credit union itself. Anyone care to make a bet? Comments? 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