Large bank executives can be more specialized than credit union executives, however, Mitchell, Stankovic & Associates CEO Sue Mitchell said. Bankers tend to be more specialized in a particular discipline, such as lending or law. They also tend to be distanced from the customer, she added.

Breadth of experience is key for credit unions, which often have executives who cover multiple verticals, and it's also critical for future CEOs, who need a broader view of the business, Hollen added. Rotating oversight responsibilities is critical to developing well-rounded leaders who can succeed in credit unions. He should know: Hollen has developed several credit union leaders (see page 3) during his decades-long credit union tenure, culminating with his retirement this summer.

Mitchell acknowledged bankers can contribute a certain level of professionalism and an objective business perspective that's different from what you get at a credit union due to the market responsibilities and differing regulations. Community bankers in particular have experience contributing to local economic growth as business lenders, and recognize the importance of a commercial loan to a small business and the community as a whole.

McLaughlin explained when he crossed over from the dark side, the credit union community didn't quite trust him and his banker buddies shunned him for a period of time. He did, however, win over the credit union community, and he now enjoys the freedom of doing what's right for members.

“I’ve never come across anyone who said they wouldn't hire a banker; in fact I’ve heard the opposite,” McLaughlin said. “We could use that mentality with the whole fiscal side of the house.”

Also, as Mitchell mentioned, a banking background can be a boon in regard to strategic planning. However, McLaughlin added while credit unions do not lack that ability, it's good to consider bankers as an option.

Hollen remarked, “I’m not worried about replacing current leaders with credit union people. We don't need [bankers], but there have been some very good people who have come in and really adopted the credit union philosophy. Sometimes it takes a little longer, but they eventually do get it. They come around.”

McLaughlin, who has 36 years of experience in financial institutions including 20 in large and small banks, said he believes his marketing background gave him a broader view of the institution and helped him capture his credit union CEO positions.

Bankers should use McLaughlin's self-coined RAIN method in deciding whether credit unions are really their calling: Review the situation, assess the good and bad, implement changes slowly and negotiate. The initial negotiation, he pointed out, is with yourself on issues such as compensation. Yes, the packages are less lucrative, but there's a huge upside: Greater job security, as you won't be waiting to be squeezed out by yet another bank merger.

Mitchell said asking complex interview questions can help weed out candidates who won't easily make the bank to credit union transition. Ask about how they conduct performance reviews or handle ethical questions.

Finally, credit unions can do more to continue cultivating future industry leaders as people like Hollen retire. First, Hollen advised, rotate certain functions at the credit union when possible. Also, coach on networking skills, provide networking opportunities and encourage professional development, he recommended.

The credit union culture is shifting, and bringing in bankers may be a part of it. But when it nets positive results, change is not a bad thing.