Why Every Credit Union Executive Needs a Great Peer Network

I’m going to make a bold prediction: Richer, more frequent discussions with peers would help your career. But who would you want to spend more time with? How would you find them? How would you initiate contact? And then there’s the free rider problem – why should you be the one to reach out in the first place? When you put it all together, we’re left with an unavoidable conclusion: It’s surprisingly hard to engineer ongoing interactions with the right people. So, we settle.

But settling is a mistake, given the dramatic changes taking place across all sectors. As Klaus Schwab of the World Economic Forum wrote, “We are witnessing profound shifts across all industries, marked by the emergence of new business models, the disruption of incumbents and the reshaping of production, consumption, transportation and delivery systems.” In such an environment, strategic considerations are inextricably linked with commercial, technological, social, political, legal and economic considerations.

Moreover, Schwab asserted, “The velocity of disruption and the acceleration of innovation are hard to comprehend or anticipate. They constitute a source of constant surprise. In such a context, it is a leader’s ability to continually learn, adapt and challenge his or her own conceptual and operating models of success that will distinguish the next generation of successful business leaders.”

Yes, credit unions need great leaders, now more than ever. But leadership is more art than science. Experts have developed reliable equations that can be used to put a person on the moon. However, there is no equation or algorithm to solve complex business problems – particularly those that involve people (i.e., nearly all of them).

It’s impossible to understand a complex ecosystem fully, so we all make simplifying assumptions. We develop and refine our mental models. This is OK. As statistician George Box once observed, “All models are wrong; some models are useful.”

Indeed, our beliefs matter. Beliefs shape actions and actions shape outcomes. So, if a leader seeks a different outcome, it’s not enough to act differently. He or she must think differently! The problem is that we too often treat beliefs as facts. And we too rarely acknowledge and challenge those beliefs.

Savvy credit union leaders have learned to seek out peers who are confronting similar challenges, to validate – or refute – their beliefs. However, the most relevant professional peers often live in different cities. Ad hoc peer conversations about timely, important issues are wonderful but far too rare. There is a solution though: Join or create a peer network, with 16 to 24 fellow credit union executives. Then agree to meet with this group, several times a year, indefinitely. The group should be large enough to offer diverse perspectives, and small enough to fit around a single conference table.

Why might such a group meet? And what should they discuss? In my experience, there are three broad questions that any group of leaders should explore over time.

1. How might external forces impact our companies? The focus is not just on “what,” but also on “so what?” What is the likely effect of an increasingly challenging regulatory regime? How might technology or new entrants alter the competitive dynamics – and the risk profile – of our industry? What cybersecurity trends are most troubling and why?
2. How are our companies addressing critical business challenges? It’s always helpful to benchmark other credit unions’ internal practices, resources and constraints. What policies and cultural norms are working well, and where are changes warranted? How do other credit unions encourage innovation? What technology and tools are others using? How do peers attract and retain members? Still, objective benchmarking alone (i.e., “what”) has its limits. Each credit union has its unique culture, history and risks, and “best practices” are often context-specific. For that reason, it’s often more helpful to explore why the peer organization made the choices it did. Because “why” discussions reveal beliefs, assumptions and lessons that can be applied in other contexts too.
3. How do we think about our roles, our careers and our lives? Let’s face it: We all seek opportunities for professional growth. How are others navigating their careers? What responsibilities are they taking on? How do they think about building and leading their teams? What’s the step on my career ladder? How have peers overcome frustrations or roadblocks? What are their goals and priorities, and how do they mirror – or diverge from – my own? How can an ambitious professional balance a demanding career with a fulfilling personal life?

There is no question that great peer dialogue about those three big questions – external, internal and personal – can transform the quality of an executive’s career. But a well-designed peer network can offer something more: A sense of community.

An executive once told me about the value of having “a forum to interact with peers who are engaged in the same issues I am, and who face many of the same challenges as I do; it makes me feel less like I am on an island!” Another spoke of the power of “relationships that previously, for the most part, were rivalries.”

Peer networks often deliver benefits common to any strong community: Information, cooperation, support, guidance and insight. They can also provide network members with a new way of thinking about their place in the world, offering tools and perspectives required to navigate vexing leadership challenges – alongside peers who are on the same journey.

James Millar is Founder of SkyBridge Associates. He can be reached at jmillar@skybridge.associates.