It’s not about the money! What CU leaders need to think about for 2024 … and beyond

It’s not about the money.

It may seem a little strange that I’m saying this to credit union leaders. All day long you work with money, money, money. But more than almost anyone else I work with – you believe with all your heart that it’s not about the money.

Every time I speak at a CU event, I hear you talk about making people’s dreams come true by helping them buy their first – or next home. I hear you talk about helping that small business that couldn’t get financed anywhere else. How you helped a family fund a child’s education or handle an unexpected expense like a failed furnace or a leaking roof. I hear you talk about being part of your community and supporting your local schools and charities.

It’s not about the money. The money is just the fuel that keeps the fires burning.

So when it comes to compensation for you and your employees – does it suddenly become all about the money? If it was, you’d be working for a commercial bank.

Now don’t mistake my intentions here. You still need to pay people fairly. And you still deserve decent compensation yourself. And you should be sharing in the rewards when you produce above and beyond – within reason.

At the same time, it’s more important to focus on what appeals to the heart, not just the head. More than ever job stress, depression, and disengagement can be attributed to a lack of inspiration, opportunity, and a sense of meaning and purpose rather than simply pay. That’s why it’s so important to inspire rather than motivate – both for yourself and the people you serve.

What’s the difference?

Motivation is simple. You bribe people – or you scare them. That is, you can offer incentives and prizes, and set goals and quotas. You reward people when they meet expectations. Or you threaten or punish them if they don’t.

Motivation appeals to the head. The very root of the word means that you provide a reason to perform a specific action. The problem is, we’re not reasonable creatures. We’re overwhelmingly emotional creatures.

Motivation does work – to a certain point. The key is in the word “expectations.” Incentives and threats do produce results up to a specific outcome. So how do you blow expectations out of the water and get people to perform above and beyond what they thought possible?

Inspire them.

Inspiration appeals to the heart. You’re connecting emotionally with a higher sense of mission, purpose, and meaning. It’s the difference between closing a loan to earn a bonus and the satisfaction of helping a young family secure their first real home.

Be careful now. For some people, that bonus can satisfy highly emotional desires and needs. This is not an argument against motivation and material incentives. It’s an appeal to your heart to connect to the hearts of others and to embed this process as a discipline in your leadership practice.

Let’s bring it down to earth. How, exactly, do we accomplish this?

This is one of the fundamental differences between someone who is only a manager, and someone who is a genuine leader. Almost any manager can learn how to motivate people. Leaders truly inspire.

First – listen…

You know how important it is to listen sincerely to the people you serve. Unfortunately, most of the leaders I work with struggle to prioritize this discipline. I get it. Your time is a finite resource and there are often procedural – managerial issues and situations that need your attention. That’s why I emphasize the idea of “discipline” so much. That’s why we call “IEG,” Inspire, Empower, and Guide, the essential leadership “disciplines.”

Commit specified blocks of time to meet with the people you serve to listen to their needs, goals, desires, concerns – and ideas. Carve these appointments in stone. If, on rare occasions, something must displace one of these appointments, make sure you immediately reschedule.

Next – Empower…

These disciplines are inseparable. Each is dependent upon and reinforces the others.

Do your best to make sure people have what they need to perform at their best and fulfill their individual ambitions. This includes emotional support as well as material. Encourage them and provide opportunities for team building and peer support.

Guide…

A strict manager might push or drive. A leader guides.

Discipline yourself to commit specific times for the people you serve. Share yourself – your knowledge, experience, and wisdom as a teacher, a coach – a mentor. You can implement this discipline in many forms. The best leaders are all teachers.

Leadership is sharing. A leader shares. The rest of the discussion is about what we’re willing and able to share and how we’re going to do it. Inspire, Empower, and Guide are the essential disciplines that help you identify what you can and will share and understand how to embed this process in your leadership practice. That’s the true heart of our programs and workshops. And it’s a never-ending conversation.

People perform at their best when, and only when, they know their leaders care, their work has meaning, and they have the chance to learn, grow, and develop. To accomplish this you must inspire them, empower them, and guide them…

And it’s not about the money.

Jim’s latest book, “IEG––Inspire, Empower, Guide, 3 Essential Leadership Disciplines” is now available in paperback and Kindle editions. Start the year right with this concise, yet detailed exploration of how to bring out the very best in the people who trust in your leadership. Use this link to get your copy today.