People at the core: Elevating the people side of the credit union in strategic planning
In not too long many credit unions will be holding their formal strategic planning sessions. Strategic planning can often focus on operational efficiency, growth metrics, and financial performance, with maybe a side of people considerations. These elements are undoubtedly crucial. However, the focus on hard numbers can sometimes overshadow the people aspect of the business which is equally important, and drives the organization forward. Leadership development and employee engagement are the backbone of sustainable growth and operational excellence. To truly thrive, credit unions must intentionally and strategically incorporate these human elements into strategic planning processes, complete with benchmarks, measurements, and accountability mechanisms.
Leadership development is often treated as an afterthought, tacked on to strategic plans as a nice-to-have rather than a need-to-have. But cultivating strong, capable leaders is foundational to long-term success. Without intentional investment in and commitment to leadership development, credit unions risk a significant lack of robust and impactful leadership, consistent employee experiences, and clear direction and support during times of change.
What gets measured gets done. Leadership behaviors, competencies, and expectations should be clearly defined and consistent across the credit union leadership team. Leaders should have clear development plans for areas that they need support in. Benchmarks might include improvement in emotional intelligence assessment scores (particularly in self awareness), employee engagement survey data, and feedback from 360-degree reviews. Leaders of leaders (and potential leaders) can often lose focus on true leadership development initiatives in lieu of operational needs. Accountability comes into play when leadership development is tied to performance evaluations, both for the leaders being developed and for those responsible for their growth. When leadership behaviors, competencies, and expectations are clear, consistent, and measured with intention and an accountability structure the organization as a whole benefits.
Employee engagement is another area where strategic planning can fall short. It’s easy to focus on operational efficiencies or member growth, but without a committed, motivated workforce, these goals are unlikely to be met. Engaged employees are more productive, more likely to stay with the organization, and more passionately tied to goals and objectives—yet many credit unions fail to recognize the strategic importance of fostering engagement. Measurement is one piece of the process, but there is a lot more to follow.
If there is no plan to use employee engagement data strategically with benchmarks, accountability and clear communication, it may be better to forgo doing one at all. Engagement initiatives should be designed with clear goals in mind and integrated into the broader strategic plan. These initiatives might include regular employee surveys to gauge satisfaction, targeted programs to address areas of concern, and opportunities for professional development that align with both individual aspirations and organizational needs.
Measurement is critical. Engagement levels can be tracked through employee surveys, turnover rates, and productivity metrics. But it’s not enough to measure—there must be accountability. Managers should be held responsible for the engagement levels within their teams, with clear expectations set and reviewed regularly. Engagement should be a standing item on the executive agenda, not something revisited only when a problem arises.
By making employee engagement a strategic priority, credit unions can create a more resilient, and productive organization. Engaged employees are not just more likely to stay, they’re more likely to go above and beyond, driving the organization toward its goals with enthusiasm and commitment.
While operational efficiency and growth are essential, they cannot be achieved in a vacuum. The people aspect of the business must be given equal weight in strategic planning. This requires intentionality, with clear goals, measurable outcomes, and accountability factored into the strategic plan.
When the people side of the business is strategically supported, the results are transformative. Leaders are more effective, employees are more engaged, and communication is more impactful. Together, these elements create a solid foundation for operational success and sustainable growth.
