Credit union leadership training is always important . . . but why is it especially important in 2025? Because the regulators are weighing in on leadership planning. A final rule promulgated in December mandates succession planning for key positions to reduce mergers.
A statement from NCUA Chairman Todd Harper said: “We know that the failure to plan for management and key decision-maker transitions comes with a cost.…This final rule on succession planning establishes a way for the NCUA to address one of the most common causes for unplanned and unforced credit union mergers.”
OK, perfect. Just fill some slots with some names, satisfy the regulators and you’re all good. Right? Maybe you are “good” in the sense that you fulfilled the requirement, but leadership planning shouldn’t be a rubber stamp task.
Some things to consider when filling those boxes:
- What are the most important positions?
- Who’s on deck?
- Are they truly prepared?
That last question is key. People can rise through the ranks without formal training. They may be incredible employees and managers. But are they leaders (right now)?
If not, don’t fret. Credit union leadership training can help them get there.
Transactional v. relational
Managerial roles focus heavily on understanding tasks, ensuring others complete tasks and getting things done. Managers are usually names on an org chart, with authority derived from the position. It’s mostly a transactional relationship between manager and reports.
Leaders focus on people—empathizing, motivating, disciplining and galvanizing people. When done right, people want to follow you. You aren’t just a title on a placard but an influencer. It’s primarily a relational process between the influencer-leader and reports.
New leaders must learn the distinction between managerial and upper-level positions. Credit union leadership training touches on topics like:
- The mindset of leaders
- Accountability
- Leading through change
- Communication
- Establishing a positive culture
These are not subjects new leaders automatically download into their heads after a promotion. These are incredibly nuanced issues, and you must teach your up-and-comers how to tackle them.
How do you train your leaders?
There are big and small ways to do credit union leadership training, but the important thing—do something!
Small credit union employees are already struggling to keep their heads above water. The COO is also the teller and janitor in many cases. So, adding training on top of the additional succession planning burden sounds like too much. Find small ways to do it. Here are some ideas:
- A quarterly book club for rising stars (with the bonus of a discussion pizza party at the end of the quarter for a fun twist).
- Monthly lunch and learn where current leaders teach new ones. Leave your office and hit the breakroom for a free way to train others.
- Find one apprentice and show them the ropes. Identify your padawan (a.k.a. successor) and personally train them to become the master when you’re gone.
Larger shops can afford their own training departments or more formal leadership training with outside facilitators. A third-party trainer offers a detached voice uninterested in internal politics and solely focused on developing your leaders.
Just remember: you’re never too big to fail. Blockbuster was a $3 billion company before it collapsed. Don’t rest on your laurels when it comes to credit union leadership training. Bad leadership ruins organizations of all sizes.
Develop a training plan
You need parallel plans—a succession plan and a training plan. Think of this like a roadmap and mile markers. Your succession plan provides a bird’s-eye overview of the destination, and your training plan tells you how future leaders get there.
Without one or the other . . . you’re going to get lost. Make 2025 the year where you do more than stand up a paper cutout of your succession plan for the regulators and say you “did leadership planning.” Put meat on your succession plan’s bones with solid credit union leadership training.
