HERNDON, Va.–Quick wins can seem wonderful, but they are also short-lived. That’s just one lesson learned during his career by Chris McDonald, president/CEO of the $2.8-billion Northwest FCU. Below Mr. McDonald shares his insights as part of CUToday.info’s The Corner.
CUToday.info: What intangible of leadership is most difficult to convey or prepare for?
McDonald: Every organization has a unique culture, and every good leader should invest the effort of understanding those nuances before bringing about change. You cannot effectively migrate or move a culture without understanding it. I’ve come to learn that people aren’t inherently afraid of change. Generally, fear stems from uncertainty. You must understand your organization in order to migrate it.
CUToday.info: Are you a fan of a management book or books? If not, why no. If so, which have resonated with you and why.
McDonald: Management books and books-on-tape are helpful resources. But there’s no magic formula for how to lead.
All situations are different. I use these tools to draw parallels, but not as the blueprint for actual experience. The same holds true for leadership books. While great sources for inspiration and reflection, they shouldn’t be read as if they’re cookbooks— following a recipe to create a strong organization, or solve a crisis.
That said, one of the best books that I’ve read was Rudy Giuliani’s book, called simply “Leadership.” His philosophy, “weddings are optional, funerals are mandatory” resonated with my own leadership outlook. My number-one goal is to always be present during times where it is crucial to lead.
CUToday.info: Innovation: four syllables getting all the attention. Deservedly so? If so, can you really drive innovation? Or is it coming at the cost of implementation and delivery?
McDonald: Yes, that is an oft-misunderstood and widely used word these days.
I’m not sure innovation is something that can be “driven.” I think a better way to think of it is that innovation can be nurtured, and that you need to create an environment in your organization where innovation can grow.
Too often “innovation” is synonymously linked with technological innovation. We work in a commodity environment where what we sell and the services we provide are highly controlled and regulated. This challenges us to continuously think outside of the box if we are to differentiate ourselves, and oftentimes our innovation isn’t fostered by creating something completely new, but improving an existing process or product.
We never rest on our laurels or assume that something is good enough “as is”. We remain open to new ideas and new technologies, and accept that innovation can come from anywhere or anyone in the organization.
CUToday.info: If you could go back and talk to You On The First Day On the Job, what advice do you share?
McDonald: The first temptation for most passionate leaders is to make a positive impact immediately. Quick wins are great, but I keep in mind that it’s a marathon and not a sprint. That message often gets lost in the early days. Don’t push the process faster than it can be assimilated by the organization. There are days where I need a gentle reminder that success is closer than it might seem.
CUToday.info: My Keeps-Me-Up-At-Night concern is? Why? And My-Lets-Me-Sleep-At-Night optimism is?
McDonald: We’re continually balancing implementation of new technologies that make our members’ lives easier, and maintaining a close relationship with our members. At first glance, the evolving nature of payments could appear to disrupt the relationship we have with our members. At Northwest, we want to be our members’ financial partner for life regardless of what other payment options may be on the horizon. The challenge is ensuring that we leverage the new technologies to continuously stay top-of-mind and wallet with our members. We’re happy to be able to provide options that offer the convenience and security they may not get elsewhere. Ultimately, we need to continue to evolve our relationship with our members, as payments also evolve.
My optimism is in our spirit of innovation. We employ the right people, and foster the right environment to provide superior products and seamless member service. By continuously keeping our fingers on the pulse of our members’ needs, I’m sure we can keep pace with any future challenges in the banking industry.