There was a time when it wasn't uncommon for someone to start out as a teller and work his or her way up to the top spot, doing stints in a variety of departments along the way, but it used to be that the least likely stop along the way would be working in IT.
Not anymore.
As technology continues to be increasingly interwoven into almost every aspect of running a credit union, not surprisingly, more credit union CEOs today are coming from the IT department. There are still plenty of CEOs who come to the job after having served as CFO or COO, but these days, it's not all that uncommon for a CEO to have previously served as a chief information officer (CIO) of chief technology officer (CTO). And even some of those COOs could have come up through ranks of IT, as the technology department frequently comes under operations' purview.
This is the first in a series profiling current credit union chief executives who moved from the server room to the corner office, and how their time in IT informs their approaches to leadership and decision making.
FORUM CU CEO Doug True is well-known for his time at the helm of the CU's CUSO, FORUM Solutions, where he was one of the architects who designed the organization's loan origination software (later sold to Akcelerant in 2008). During that time, he was also the CTO at the $1.1 billion credit union.
But that solid technology background is also bolstered by experience in a variety of other departments, as well.
"I was fortunate to have worked in retail, consumer lending, real estate lending, commercial services and technology," said True, who told Credit Union Journal that becoming the CEO wasn't originally on his professional radar. "My experiences in all of these areas benefited me greatly."
True, 49, took the reins of FORUM CU, which currently serves 120,000 members, in 2011. However, he began his career with the CU in 1988 as a management trainee. For the next 10 years he focused on retail and consumer lending. He then continued his education obtaining his MBA from Anderson University. Upon graduation, he helped found the CUSO, FORUM Solutions.
Technology As A Strategy
Before the rise of smartphones and mobile banking, there was a sense, and sometimes an amicable division, between IT departments and the rest of the credit union. Technology, some opined, was better left to programmers and system administrators. In recent years there has been a shift to incorporating not only technology into the overall business model, but the individuals driving that innovation.
"I was fortunate to have a positive working relationship with the former CEO and felt as though he understood the importance of technology and how technology can positively impact our ability to serve the membership," said True. "He may not have always understood the details as to how it worked or would work, yet he did embrace and support and adoption of technology for both internal and member facing use cases."
Whether or not a CEO with an IT background is better suited to guide the ship is relative, said True. He believes capable CEOs can come from a variety of disciplines, but stressed it's more important for a CEO to have a wide spectrum of knowledge in different disciplines than deep knowledge in one sector.
"I worry about the next generation of credit union leaders having the same opportunities I had, because the size of credit unions seems to dictate specialization," said True. "I had the privilege of working for a small credit union that grew in size so there were ample opportunities in a variety of areas as the credit union was growing."
Indeed, as previously noted, it's not uncommon for the head of the IT department to report in to the chief operations officer, and that IT department head can then be promoted to COO, gain a wider field of experience there and then be ready to take on the role of CEO. But as IT departments have expanded well beyond simply providing tech support to everyone else, many of those heads of IT have been elevated to a c-suite position reporting directly to the CEO, which can, in some cases, actually prevent them from developing that wider girth of experience.
Technology Conduits
Forum Credit Union has 320 employees, 16 of which serve in the technology department. True explained he sits on an executive team consisting of five other employees, one of whom is the Chief Technology and Risk Officer — the overseer of technology, risk and facilities.
"I interact with him on a regular basis and attend meetings as he invites me or as a project dictates," said True. "We have many cross-functional teams assembled at FORUM based on specific projects, and I am often a part of these, where I interact with technology teammates. I will sit in on vendor demonstrations as needed and enjoy doing so since FORUM Solutions was once in a vendor role for credit unions."
True refers to Forum CU's culture as "technology centric" with an executive team that is "technologically fluent." As a result, he doesn't feel the need to push for a certain technology, adding that the credit unions internet banking, mobile apps and CRM system were all internally developed solutions.
Looking forward, he said the executive team has many innovative projects on the horizon including new mobile banking enhancements as well as a new core system request for proposal (RFP) process.
"We just finished implementing two new loan origination solutions, one for real estate lending and one for autos and credit cards," said True. "We seem to always have technology projects moving us forward."
