NASHVILLE, Tenn.–The retiring CEO of a small credit union is sharing what he has learned during his 40-year career.
Joe Menninger is stepping down as CEO of the $17-million Your Best Credit Union. Below, he participates in this CUToday.info Exit Interview and offers his insights on leading people, the future for small credit unions, and more.
CUToday.info: How did you become involved in credit unions?
Menninger: I learned of credit unions while serving in the U.S. Marine Corps and appreciated how they treated the members. I began my career in 1984 working for DCU (Defense Credit Union) Insurance Agency as an account executive managing the collateral protection insurance needs at Air Defense Center FCU, El Paso, Texas, and was recruited by Members Insurance Group (owned by the Texas Credit Union League) as a multi-line insurance agent working in GECU’s office within El Paso, Texas. I was ultimately transferred to Dallas as district sales manager with Members Insurance Group. I later went to work for CUNA Mutual Group and subsequently credit unions until the present.
What lessons have you learned about driving and managing growth during your career, and has that evolved or changed?
Menninger: I enjoyed the benefits of having great mentors when working at CUNA Mutual Group who helped me understand the need for managed versus uncontrolled growth.
In my early years, when working as a business consultant with CMG, credit unions were able to rely on their sponsors or select employee groups to help build growth due to the bond with the organization.
Today, many of the companies have restructured or no longer exist, creating challenges for growing membership. The recent rate environment has presented several challenges for credit unions that seek to manage loan and deposit growth without incurring a negative yield curve, especially for smaller credit unions.
CUToday.info: What lessons have you learned about managing people during your career, and has that evolved or changed?
Menninger: The greatest lesson I have learned over time is to be humble and intently listen more than speaking to help understand what clarifying questions may be needed.
In the past, employees would provide feedback to managers who would not act on their suggestions or recommendations. Employees are the organization’s greatest asset, and their comments should be received and communicated as to why they were accepted or rejected. This simple line of communication may keep the employee engaged instead of being disenfranchised.
CUToday.info: What does it take to manage and lead a smaller credit union?
Menninger: Managing a small credit union requires a diverse set of skills, as you are led in many different directions daily. The biggest key is to train your employees and provide clear expectations for their performance. On some days, you may work on loans, marketing, business development, accounting, collections, compliance, technical issues, and employee needs. Multi-tasking is an essential competency needed to function daily.
CUToday.info: What advice would you have for a new CEO, or someone who aspires to be?
Menninger: Do not hold yourself back by thinking you do not have knowledge in all areas of credit union operations. Consider your strengths and weaknesses, then hire people with strengths in your weaknesses, allowing a balance in the operation. Therefore, each of you can learn from one another.
For those who aspire to become a CEO, master your current position and begin cross-training in other areas/departments. Have the initiative to personally develop by seeking to understand and train in different positions. Most of all, be humble and treat people with respect.
CUToday.info: What is your view on the future of credit unions, if there is to be one?
Menninger: I foresee growing future challenges for small credit unions due to increasing compliance and regulatory changes. Many small credit unions do not have staff with the expertise to manage the continually evolving environment, making it more difficult for them to remain compliant.
Regrettably, more small credit unions may have to merge, reducing the number of existing credit unions overall.