ORLANDO–The outgoing and incoming CEOs of Velera, along with the CUSO’s chairman, discussed the company’s leadership transition, what it will mean to credit unions, the future of the company and credit unions’ ability to compete, and more.
During a Fireside Chat session at the company’s VeleraLIVE event, CEO Chuck Fagan, who is retiring Sept. 30; incoming CEO and current CFO Brian Caldarelli, and Chair Cathie Tierney, the CEO of Community First Credit Union in Wisconsin, discussed the issues above and more, including sharing some personal anecdotes that have shaped them.
The CU Daily had an extensive interview with Fagan and Caldarelli that can be found here.
Here is a look at what was discussed:
Fagan: How long has this been in the works?
Tierney: This has been in the works for several years. Chuck gave the board this date (of retirement) in March of 2015 (when he rejoined the company). We took this process very, very seriously and we looked at both internal and external candidates. What we needed was someone with payments expertise, of course, but it was also really important to us that we had someone who understood and had a passion for the credit union mission at a very fundamental level, along with someone who would navigate the complexity and come out on the other side with relationships intact. We also wanted someone who had that kind of institutional knowledge.
Fagan: What does it mean to you to be next president and CEO?
Caldarelli: This is an honor. It’s not something I could ever take lightly. Stepping into something that’s been so thoughtfully built over the better part of the 50 years with you and so many others along the way. I was talking to my son about this a couple weeks ago and what really stopped me in my tracks was he said, ‘You know, hey I’d like to work here one day.’ And I’m thinking, ‘Well, get through middle school first, then we’ll talk.’ So, to me this is really about something long-term, something you want to protect and preserve for the next generation. Day one, this isn’t coming in here and trying to change everything for change’s sake it’s about understanding what’s working it’s about protecting what matters it’s about being really intentional about where we go next so yes, it’s an absolute honor but also something I’m very excited about.
Fagan: You and I know being a CEO is different from being a CFO or CAO, It’s more visible. How describe your leadership style?
Caldarelli: I think about leadership simply. My job is to find out what makes people great, sometimes before they even see it themselves, and then putting them into a position to succeed. Six of the people on the Velocity team have worked for me over the years. That means a lot to me. Don’t get me wrong, I really care about execution, too. I like to know what success looks like and then build the systems to get us there. But at the end of the day nothing works without people. For me, everything starts with culture.
Fagan: You mentioned culture. What can you share?
Caldarelli: I remember the first day of the merger (between PSCU and Co-op Solutions). Ot was the coming together of thousands of people navigating all kinds of change. That’s never a small task.
From the start we had a very clear mindset. It was doing no harm to our people, do no harm to our clients, and that’s not just the line, that’s the decision filter. We were very intentional about that. We had thousands of decisions on everything from insurance benefits to structures, titles, finding the right roles for people, finding the right solution.
It’s easiest to focus on systems, timelines of integration plans. What really matters is how people experience it. So, we were very intentional about doing it the right way and we were given the appropriate space to do that. That’s one of the benefits about being a cooperative. We’re not beholden to that Wall Street 90-day shot clock. I’m proud to say that our employee engagement scores actually went up during (the merger) and that doesn’t happen by accident. It happens because people feel heard, they feel supported. It’s important so for us. That’s our version of our philosophy and you all know it–it’s about people helping people.
Tierney: It’s not a small thing. With credit unions like Community First, when we rust our members with other organizations. It’s an extension of us. And that is the power of the cooperative and of people coming together. It’s not just the day-to-day operations; it’s the research, the thought leadership, the consulting services, that adds so much value for credit unions of all sizes. We know that when credit unions grow, we grow.
Fagan: What does Brian’s Velera look like?
Caldarelli: On Oct 1, I promise I’m not going to say everything is broken, because it’s not. Our purpose, our strategy, the way we show up for our clients isn’t changing. What I’m focused on is how to we build on that, how do we accelerate that? Making decisions faster is top of mind for me. Really, it’s about service. Service is top of mind. It’s who we are. Velera is a service organization. That has to be felt at every interaction. It’s 140 million people depending on your credit union. Ultimately, service means being more proactive, anticipating needs, it’s taking feedback and acting on it. It can’t just be a buzzword. It’s how we show up when it matters.
The other focus is technology and innovation. You know things are changing quickly. We’re ready for what’s next. We’ve built the capacity to meet the moment.
Caldarelli: I’m going to turn the tables and ask Chuck, what have you learned in the job and what can you share?
Fagan: I’m proud to have carried on the legacy of Dave Serlo, PSCU’s first employee and our only CEO until his sad passing in June of 2010. He was a mentor to me and many others in this room, a true champion of the credit union movement and it honestly has been an honor to follow in his footsteps.
Before I left PSCU I led I sales and account management, very client-focused roles. But when I went to CUES (as president and CEO) I learned the value of succession planning and the discipline of developing talent. It’s something that I’m proud that I’ve carried over here at Velera as a CEO, and one of my crowning goals has been to be able to hand it over to someone like Brian.
Another thing that I’m proud of is our people and our commitment to their well-being. That success continues to pay dividends and it’s the right approach. Like Brian mentioned earlier, during COVID, and it’s also something I’m very proud of, we didn’t lay off a single employee. In fact, we added people, because our momentum was so strong.
If we stay focused on our credit unions, our employees and the industry Velera will absolutely continue to thrive.
