GRANITE CITY, Ill.-When Mark Holshouser began with GCS Credit Union in 1979, it had one location, 10 employees and $10 million in assets. As its core FOM, the steel industry, began to reduce its workforce, GCS moved to a community charter. Holshouser, who was named CEO in 1985, is retiring, having overseen growth to $317 million in assets and 39,000 members. Below, Holshouser shares his insights in this Credit Union Journal Exit Interview.
CU Journal: How did you come to be involved in credit unions?
Holshouser: I was working at a community bank in the late 70s when credit unions first were approved to offer share drafts to their members. I worked with, at that time, Granite City Steel Employees Federal Credit Union and the local community bank to set up a "payable through" system that would facilitate the processing of the members' share drafts. Later, when an opening became available at the credit union, they called and offered me an opportunity to work for them as an assistant manager at their facility by the steel mill.
CUJ: Describe the management challenges in responding to changes affecting the core FOM.
Holshouser: When I began at the credit union, the field of membership eligibility was the steel mill employees in the town and their families. In the years after I started at the credit union, the employment levels at the steel mills began to be reduced dramatically, primarily due to advances in technology. As a result of this shrinking potential membership base, management and the board made the decision to convert to a community charter and began to expand first to the surrounding community and later to surrounding counties. We now serve 10 counties in southern and central Illinois.
CUJ: What lessons have you learned in managing and overseeing growth?
Holshouser: Pay attention to the details. Once the organization begins to expand, the natural reaction from the membership is that their financial institution has forgotten them and they are now only viewed as an account number. To each member their account, even if it is small, is very important to them, so take time to continue to talk with them and as much as possible continue to give them the attention and service that they have always received.
CUJ: What lessons have you learned in managing people?
Holshouser: Most people perform best when they have a structured environment, understand their duties and what is expected from them. Recognition of a job done well, no matter where the person is in the organizational ladder provides the best motivation. Treat everyone with respect and they will do their best for you.
CUJ: What advice would you have for a new CEO just starting out?
Holshouser: Understand that you work for the members and they want to know that their funds are safe and secure in a professional environment. Take the time to get to know what differentiates your members from the rest of the crowd and see what you can do to provide that mix of products and services that makes them proud to be a member of your credit union. Do not be aloof. Get out in the community and in the lobbies of your branches and talk to your members. You will gain a much better understanding of what they are looking for by talking with them directly. However, it is most important to the CEO to make sure that he or she is surrounded by good and competent people in all areas of the credit union. Your life will be so much easier.
CUJ: What is your view on the future of credit unions, if there is to be one?
Holshouser: There is definitely a promising future for the credit union industry. As currently structured, credit unions offer a tremendous value to the consumer in the financial services arena. One of the troubling factors, however, is that not enough people understand the difference in a credit union and other financial service institutions. If the consumer took the time to understand the credit union difference, they would do their financial business nowhere else. Consumer education about credit union remains the largest challenge to the future of credit unions.
