What's the best recipe for strong leaders?

What qualities do the best leaders possess? Credit union chief executive officers (CEOs) say excellent leaders share many qualities, and those attributes serve well in the rank and file, too.

It's a simple recipe. Start with the basics: honesty, integrity, loyalty. Add good communication and listening skills, plus a healthy dash of decisiveness tempered with humility and good humor. Season with confidence, perhaps even charisma. Top with genuine enthusiasm for the credit union movement.

'You have to be out in front," says Kent Preston, CEO of Horizon Credit Union in Spokane, Wash. "You have to have enough foresight or guidance to be able to direct other people and stay one step ahead ofyour employees." Horizon Credit Union has 21,000 members and $160 million in assets.

Excellent leaders should have confidence in themselves and their abilities. "You need to have enough charisma to encourage others to participate and embrace the direction you're going," Preston says. "You have to be confident, have knowledge, and be enthusiastic. I talk to everyone. I don't live in my office. I'm always bouncing around to different departments, chatting with staff about everything from how their children are doing to how they're doing in their jobs.

"Everyone knows how I think they're doing and how I think the credit union is doing. I'm very open about the credit union's financial affairs, the growth of the credit union, and our overall strategy. I treat employees more like family. There's no hidden agenda here."

Preston says leaders with these qualities don't need to demand their employees' respect-they've already earned it.

Similarly, Agnes Berkenbile, CEO of Municipal Employees Credit Union in Oklahoma City, says a small dose of humility in a leader goes a long way toward engendering the loyalty of others. Municipal Employees Credit Union has 8,800 members and $45 million in assets.

"I don't want to make my people think I'm different than they are," says Birkenbile. "I want them to know my door is open and to feel free to talk with me. I don't ever want that separation."

Modeling commitment, drive, and a personal touch works better than talking about those necessary attributes. "A good example is a whole lot better than good advice," Berkenbile says. "I'm a hands-on person. I like to stay involved. I want my staff to know I'm willing to get in there and work as hard as they work. I don't expect more from them than I expect of myself.

"It doesn't bother me to wait on members. If we're short-staffed, I've answered the telephone for a day. The personal touch from employees, managers, and CEOs keeps members loyal."

Likewise, a good leader uses the personal touch to resolve conflicts and issues within the office. "If I have two employees who have a problem with each other, I'll take them aside and try and work it out between them," Berkenbile says. "I think you need that rapport with employees. There's always room for improvement from top to bottom. I'm not always right. My way isn't always the right way."

Empathy is another important quality in leaders who deal effectively with employees, their families, and credit union members, says Craig Chamberlin, CEO of Marine Federal Credit Union in Jacksonville, N.C. Marine Federal has $263 million in assets and 91,000 members.

"Whether you're with family, friends, or acquaintances, you want to treat people with the same respect you want to receive. You want to listen to what people are saying because it's important to them," Chamberlin maintains.

"When dealing in a personal or professional environment, you want to enter into any situation with the idea that you want to give more than you get. Here at Marine Federal, I've tried to create an atmosphere-particularly with the vice presidents-that they work for everyone within the credit union. If an employee has something that's important to them, we need to listen to that concern."

This might seem basic, but plenty of executives still don't get it. Many executives don't communicate. They don't trust colleagues or subordinates, which builds up barricades between the CEO's office and the rest of the credit union. They come out of their offices mainly to meddle and micromanage others.

"I don't think you have to be a highly detailed person to be an effective leader," Preston explains. 'You don't have to be the most knowledgeable person in every subject. That's why you hire other people. You have to be a leader to those people and have enough confidence in them to let them do their jobs. But I don't think you have to know their jobs better than they do."

Other marks of bad leaders are inflated egos, self-serving attitudes and actions, and taking credit for others' work. "Poor leaders are selfish," Preston says. "They put themselves ahead of their credit unions and ahead of their employees. They take all the glory and blame everyone else for their faults. I find it appalling."

Adds Chamberlin, "They're a figment of their own imaginations. They think they're much more important than they really are."

Establishing rapport with workers can head off a lot of problems, Berkenbile says. "You have to build a common bond with employees. When you create a relationship like that, you can sit down and talk things out. I want employees to feel they can come and talk with me, rather than going and talking to someone else in the office."

WHO MODELS LEADERSHIP FOR CEOs?

Where do CEOs turn for examples of excellent leadership? Berkenbile cites her board chairman, whose confidence in her and others helps them do a good job.

"He lets employees be what he hired them to be," she says. "He has supported me through the ups and downs. He taught me to handle criticism with anything I decide to do in life."

Through example, Berkenbile's chairman also inspires her to achieve more. "So many people admire him for his ability to listen. I try to emulate that. I always want to make my employees feel important. Our employees are the rock of the credit union. Our members see them first, so it's important for our members to have faith in them. If I haven't built faith in my employees, then I haven't done my job."

Preston cites Jack Scott, a news industry leader who made a name with Gannett-one of the giants of newspaper publishing. "A long time ago, I worked for a company called Federation Publications. We were going to build a printing plant and the company brought in Jack Scott to build the plant and negotiate with a number of unions that wanted to control the plant.

"The guy had a lot of charisma. He stood up on a table, got all the employees together, and said the whole was more important than the sum of the parts. He said he was going to build that plant with or without anyone's cooperation. He said he wanted everyone to cooperate, that we were in this together, that we'd all succeed if we worked together, or none of us would succeed if we didn't.

"He got three of us young guys together. We were in different departments and basically despised each other. He got us together at his house one night and said, 'You guys are the future of this company. I want you to work together. I want you to visit other newspapers so you can see how the successful ones are run and what creates problems for the unsuccessful ones.'

"We became the mediators and the peacemakers of that particular company, even though we were far down the chain of command. He created an environment of working together and of respect. He created tremendous cooperation that I have yet to see in another company. Jack showed me how to settle unrest, create understanding, and put aside petty personal agendas. He didn't tell us to get along. He just got us to do it."

Scott also showed him the importance of passing along the wisdom one gathers over a career. "He was a mentor," says Preston. "I also try to bring younger people along. We have some talented people here. One of my priorities is to bring them along because they're our future."

Age and experience, however, aren't necessary prerequisites to leadership. For inspiration, Chamberlin looks to his 23-year-old son, who's just starting out as a golf professional.

"At his young age, he has the qualities some more tenured people don't yet possess, such as the ability to attract people to himself,"he relates. "He gets others to do things through persistence rather than demands. He involves people in his decisions. He has an incredible amount of patience and he's a great listener.

"He gives constructive criticism in a positive way to people who work with him. He's also the first to pat people on the back when it's appropriate. He doesn't hesitate to stick up for fellow employees if he feels they're right."

That leads to a final point about effective leaders: They tend to apply their impeccable ethics and strong principles to their personal as well as professional lives, Preston says. "You have to have high ethical standards. You have to be able to show that not only in your credit union but in your life."

Chamberlin cites an unusual way to determine the demeanor of a person: 'You can tell the measure of someone on the golf course. If he or she acts less professionally on the golf course, that person is going to act the same at home or in business." 0

Copyright Credit Union National Association, Inc. Mar 2000
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