PORTLAND, Ore.–Building a culture inside credit unions that creates forward-looking leadership in the long term really comes down to developing midlevel talent to be the “champions and protagonists of strategic change,” credit union leaders here were told.
Deedee Myers, CEO of DDJ Myers, in remarks themed “Strategic Thinking at Every Level: Building a Culture of Forward Looking Leadership,” walked a full-house audience at the GoWest Credit Union Association’s MAXX Conference through research and exercises all related to building succession plans not just for others in an organization, but for the participants themselves.
Current Reality of the Workforce
When it comes to succession, Myers said it’s not always siloed and it’s not always vertical—often, succession skills can be built by moving horizontally in an organization.
That’s especially critical given what research has shown about how ill-prepared many people are to enter the workforce.
As the chart shows, Myers noted that one-third of U.S. adults score below the baseline proficiency level in adaptive problem-solving.
And what is that proficiency level? Fifth and sixth grade, Myers said.
“That’s who we are hiring, it’s our potential workforce,” she said. “And we’re actually growing more in that bottom third of those scores. It’s a little sobering.”
On the flip side, Myers noted that adults who score at the highest levels of the proficiency scale were significantly more likely to report higher levels of life satisfaction and to be happier.
Changing Workforce
That reality exists at the same time the workforce is evolving. Myers pointed out that by 2030, 21% of the U.S. population will be older than 65, which is a 25% increase over the next five years.
“Seasoned talent is stepping out of roles,” Myers said, adding that Gen Z is about to become 30% of the workforce
AI and LLM
And if all of that weren’t enough for credit unions to try to adjust to, Myers noted how work processes and jobs are are being upended by AI and large language models.
“As a result, traditional leadership development efforts need to shift,” Myers told her audience. “And this comes from a tactical mindset, a project mindset. It’s hard to do that.
Addressing a worry on the minds of many, Myers asked, “Are you afraid for your job? No. We need to ante up on that critical thinking. We can use AI to do the analytics, but we can be more agile if we do it right.”
Myers said 60% of companies now prioritize new ways of working, such as hybrid work, agile teams and digital-first roles.
“These are a permanent shift,” she said.
Moreover, 65% of children entering primary school today will work in job types that don’t yet exist, Myers said.
“That reinforces the importance of future-ready education and upskilling,” she added.
Meanwhile, despite what Myers said have been the best efforts of large and influential organizations, work from home is still a reality. And what that has meant is that increasing and monitoring “engagement” and “productivity” have become an even bigger challenge. “Operating remotely creates less opportunities for cross-functional coordination and innovation,” Myers added.
How Organizations Are Responding
So, how are organizations, including credit unions, doing in responding to all of this change. In many cases, Myers said, “not so good.”
“Organization operational efficiency is more important than ever,” said Myers, agreeing it’s an oft-used phrase. As a result, “How many times can we tell managers this before it becomes noise? Is it already noise? We must become more precise and accelerate the speed of our execution. Is it possible to do both well at the same time? It’s intense.”
The Paradoxes
The other paradoxical challenges facing credit unions include, according to Myers:
- Innovation is necessary. But innovation comes with failure, which is costly and can conflict with being more precise.
- CUs need to hire and/or develop the best talent. “But neither approach’s cost structure is appetizing.”
The Hyper Mode
What all of that has created is a work environment where everyone is in “hyper-mode all the time,” said Myers, noting it has led to responsive and urgency oriented work environments and cultures. Every request is important and quick responses are rewarded. “When we are constantly looking at the thing, the thing, the thing, we don’t have time to do strategic thinking, and this goes for boards,” she said, adding that’s why it’s important for people to get away from the task and perhaps go off-site.
“Our brains are wired to respond quickly and that creates a lot of tension in our bodies. We become task masters, not critical thinkers,” she added. “These rewards come at the cost of strategic thinking.”
Cultural Conditions that Minimize Strategic Thinking
Myers noted both organizations and individuals can become paralyzed by waiting to get the process right before ever starting a project. As a result, she advised, “If we get aligned on what the outcomes should be, the processes get a lot easier.”
She further advised everyone to get out of their silo when they’re unsure how the project they’re working on will affect other people to get up and talk to other people and learn what those effects might be.
“We hear a lot in credit unions that we need growth, but we also have siloed growth,” Myers said. “Siloed growth is in polarity with the opportunity for developing talent to be champions and protagonists for change. It hinders the capacity for cross enterprise development.”
Pointing to the graphic shown here, Myers said, “That’s what you want in your succession plan for yourself and your organization. You want to increase that green spot. The challenge is all the circles grow, the green spot gets bigger, but it’s totally not easy. You have to ask for feedback. I love it when my team members ask ‘How am I doing? Where is my blind spot.”
Succession Risk Assessment
Myers walked her audience through several graphics around succession planning for both individuals and organizations, as shown here.
“What conversations have you had to be a potential successor in another part of the enterprise?” she asked.
What the Research Found
Myers shared the results of research that involved 3,217 job candidates, including 178 people who were finalists for CEO positions.
When boards were asked the primary attributes, they were seeking in candidates, the survey found, in this order:
- Futuristic thinking
- Leadership
- Creativity and innovation
- Interpersonal skills
- Teamwork
- Problem solving
- Resiliency
“External candidates all had higher scores on those components. Why? If internals had been inside in one functional area, that’s a different skill set. But external candidates may have experience across multiple functional areas,” Myers explained.
When CEO candidates were asked what they thought were the top skills needed, they answered:
- Decision-making
- Creativity and innovation
- Diplomacy
- Leadership
- Futuristic thinking
“Above all, boards twice as often chose futuristic thinking over leadership,” Myers stated.
