26 THE NAFCU JOURNAL MAY–JUNE 2022 “DO GOOD” Solve Social Problems Your Credit Union “DO WELL” Make Money purpose gap, you must have the minds and hearts of all stakeholders, but none more important than your middle management team. Research shows that middle management is key to successfully embed purpose; and executives must commit the time to develop strong feedback loops with leaders in the middle of the organization. Successfully embedding purpose is not a top-down endeavor, and it requires listening to stakeholders around authenticity. If stakeholders’ real-life experiences do not reflect your purpose, employees and members will see your purpose as a fancy tag line that is unauthentic. If this happens, no one wins. You may be familiar with a saying in non-profits, “No Margin, No Mission.” Purpose-driven organizations flip that to “No Mission, No Margin.” Credit union leaders are often fortunate that they do not have to choose between their head and their heart, they can flex both equally in our cooperative model. The credit unions that are intentional about crafting strategy that positions themselves at the intersection of head and heart, are the ones which will remain relevant longterm. Harvard Business School Professor Rebecca Henderson calls this “Doing Well by Doing Good” and she sees it as a business imperative. While purpose is the driver of sustainable growth, it starts with how your purpose motivates and inspires your employees, and therefore how it changes your culture. Leaders need to be aware that this purpose journey may require you to rethink your organizational structure and redesign your org charts. Ensuring you are recruiting and retaining the right talent to propel your purpose forward is essential, and this includes making tough decisions about letting employees go who are not aligned with the new direction of the organization. Purpose is a journey. It takes commitment and persistence. It is easy to get teams excited and gain their buy-in on day one. After all, most people want to leave behind a legacy and make the world a better place. This passion is good, but it needs to be tempered in some realism. Organizational change takes time and requires patience. Progress will be measured in years not quarters. Setting realistic progress milestones is critical so employees don’t become discouraged when outcomes aren’t immediately recognized. Why Now? Credit unions are looking for growth opportunities; and members and communities need the services your credit union provides today more than ever before. While some consumers are experiencing improved personal balance sheets, many are struggling and could use a helping hand. The credit union motto of “Not for Profit, Not for Charity, But for Service” remains highly relevant. It’s a deeply rooted commitment to service, and when infused with your purpose will ensure you’re meeting the critical needs of your current and future members. Providing consumers equal access to fair financial services is just as vital today as in the year credit unions were established . We believe a clear purpose can inspire your employees to do great work, engage your members in ways not dreamt possible and can improve the lives of future members in your communities, giving fuel to your virtuous purpose cycle, and ensuring your credit union’s long-term success. Jon Jeffreys is President and CEO of Callahan & Associates.
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