Merging missions, not just memberships: The human side of credit union integration

In one of my many trips to Tallahassee, Florida since Addition Financial Credit Union announced last December that we planned to merge in Envision Credit Union, I sat across from Envision employees during a town hall event and recognized a look in many team members’ eyes I’ve seen throughout this merger process. Nervous anticipation.

It is easy to understand that look and the underlying emotions. The prospect of change and the unknown can prompt seemingly endless questions—from straightforward ones such as, “Will I still have a job here?” to the more existential, such as, “What does your company stand for?”

Beyond the press releases, talking points, and one-sheets detailing the multitude of benefits bringing together two long-running organizations with similar histories, we can never forget that it is culture, not financial reports, that is the heartbeat of a successful merger. And culture isn’t just about processes or systems—it’s about people. As our credit union has gone through several mergers in the past 20-plus years, I can tell you this about cultural integration: It is often underestimated but it can make or break an organization’s post-merger success.

To set yourself up for long term success, first realize a merger is not one-time alignment—it is a continuous recalibration. Managing these expectations and this commitment early from the c-suite on down, can cascade throughout both organizations and go a long way towards leaders showing, and not just telling, how culture starts at the very top.

Listen to employees on both sides of the merger regularly. Check the pulse of your teams and encourage them to embrace mutual curiosity and lean forward. Particularly in the discovery phase pre-merger, there is ample opportunity for credit union teams to learn from each other. Both sides bring value and different experiences; Empower your teams to dig in and ask what their members love about their digital platform, or what systems do they find make their everyday jobs easier.

Having these two-way exploratory conversations can help avoid hierarchy bias, an issue I have seen creep up periodically during a merger. Remember, just because one credit union is bigger does not inherently make their ways better. And vice versa—a smaller credit union does not mean less sophisticated. Bringing organizations together should be a blend of the best ideas, not just the ones the surviving credit union says, “are just the way things are done here.”

The best mergers are the ones that feel like true partnerships. Two chefs, combining their skills to create a delicious new dish, instead of one chef barking down the line for ingredients to create their own recipe.

To be truly inclusive, leaders must involve teams on both sides of the merger early and often. Solicit employees’ input and then follow through. Listen to their concerns, suggestions, and questions and then adapt accordingly. If team members feel they are not getting frequent enough updates, it might be time to adjust the cadence of your communications plan. Don’t make decisions for them—make decisions with them.

Address both organizations equally in your communications, whether you are onboarding newcomers or recognizing a long-term employee. Be considerate of any differences from geography to history and highlight all the ways your credit unions are naturally aligned. For Addition Financial, reminding ourselves often how similarly both our credit union and Envision were founded by small groups of public-school educators shows plainly how we are cut from the same cloth.

For senior leaders to support this inclusive philosophy, face-time matters. To bridge potential culture gaps, and certainly geographical ones, leaders must be visible and accessible to all employees. Make team members feel seen, heard, and valued—regardless of location, branch, or department. As part of your communications plan, consider site visits, and town halls. Begin a combined leadership cadence as soon as the organizational chart decisions have been made. A sense of acceptance and belonging goes a long way.

Getting to interact with our teams face-to-face during town hall events helped me gain a better understanding of how employees were feeling about the merger and what more they needed to hear from leadership.

These examples of clear communication begin with the employee and can have a critical trickle-down effect. The better informed they are, the better the conversations will be with members, partners, and vendors in their branches, and in the community.

During one of my visits to the other credit union, I asked a member of the community development team, “what are you hearing and how is the community reacting to the news?’

The response was heartwarming. The members wanted reassurance that we—the new organization—would treat them well. The employee’s response was an emphatic yes. She said: we will all keep our jobs, our compensation was preserved, and the new organization offers great benefits.

Clear, timely, consistent communication is the golden thread to weave all the information to the membership, employees and the greater communities credit unions serve. In short, internal messaging influences external reputation. If we do a poor job internally, we are not equipping our employees to engage or even calm anxieties about the change. Change for most people is uncomfortable. Part of our job during a merger is to make that change feel as comfortable as possible.

My advice on critical pieces of communication to execute successfully during a merger:

However, this is not a green light for communication overload. Like mixing a drink, this is a balance; all these ingredients, from town halls to memos and emails, mix into a communication blender and pour out a soothing drink, if the mix is just right.

Too much communication and information can be paralyzing and overwhelming. But too little can be fear inducing. Make a plan and be prepared to adjust it if that drink isn’t tasting right.

As you hit key milestones in the merger and post-merger process, you will want to measure your success beyond metrics such as membership growth and new deposits.

Culture should also be empirically measurable post-merger, beyond just good vibes.

There are some straightforward engagement signals you can track across the credit union, along with some less obvious ones. While impossible to measure in a vacuum, employee retention post-merger can indicate the health of the organization’s culture. If you are retaining employees at a higher rate than before joining the credit unions, that may be a sign of employee satisfaction. Also, is the number of employee grievances or performance-related issues increasing with the merged employees involved?  If so, there is a communications deficiency that needs to be addressed.

You can get a clearer picture by commissioning a formal culture survey of employees both pre- and post-merger. The quantitative and qualitative results can reveal where your culture is strongest and what areas you can focus on for improvement.

While not as scientific, you can get a sense of company culture if employees are volunteering in large numbers, wearing logo wear proudly on the job and in the community, and if any are participating in brand ambassador programs. As they say, happy employees are the best brand ambassadors.

Unfortunately, there is no one-size-fits-all playbook for executing a merger or acquisition. Every merger is unique. A playbook that worked well in one instance may need refinement for the next.

There are some fundamental truths that carry through, however.

Organizational mergers are long, complicated projects—but merging cultures can and should be simple. It is about blending purpose and people. Mixing that blend is a long game—and a leadership responsibility. Communicate early, effectively, and inclusively—and reassure those feeling that nervous anticipation.

Remember, when culture leads, success follows.