When Members Talk, Listen

I was catching up on some reading on an airplane recently and did some reflecting. I had forgotten outside Harvard Business School professor Clay Christensen’s office hung a sign that said Anomalies Wanted. He believed if you could spot outliers — anomalies — there was a story there that could be a path to innovation.

This year will likely be a challenging one for credit unions, both in terms of growth and earnings. The industry is facing margin compression, the macro credit cycle, and a fight for fewer available deposits, yet despite these headwinds, many leaders I talk with see this as a great environment to make a difference and real impact. It sure is needed.

While talking with leaders, I love hearing stories about members and have come to realize these stories often are employee stories as much as they are member stories. They generally involve an employee asking questions — trying to understand more so they can help. For credit unions with a branch in their headquarters, one of my favorite questions is: “Tell me about the last time a member left in tears because you were able to help them.”

Yes, it’s leading the witness, but those stories are powerful.

Commonly, these stories seem like anomalies. I remember hearing about a member who was getting divorced because her husband left to tour with Dead & Company for the summer. That member needed help and hope. Although I acknowledge few members have a spouse picking up and touring with Dead & Company, I think many people do experience the underlying feeling of helplessness.

Now, the front-line staff who generally gather these stories might not have the time, skill, or mechanisms to pass this information up the organization. And taken in isolation, these stories could just be one-offs — faint signals. But what if they aren’t? Although 2024 might present slower loan volume and deposit growth, it could be the perfect time to harness the power of anomalies. Understanding in members’ own words the things they struggle with can lead to new product innovation, more relevant messaging, and better engagement of employees.

We at Callahan & Associates have seen leading credit unions start all meetings, including board meetings, with member stories. These member stories then turn into employee stories, which drives engagement. One question leaders might want to ask: Does our culture allow us to find, connect, and grow from anomalies our members tell us about?

Truth is, sometimes anomalies are just one-offs. That said, when given the time to explore the root cause, credit unions can often find commonality to the stories. This is when credit unions are at their best. I encourage your credit union to embrace the anomalies of your membership. It might be a path to driving engagement both for members and employees.

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