ST. JOSEPH, Mich. — The financial similarities between First Resource FCU and United FCU made the two good merger partners back in late 2006. But what's really contributed to the merger's success, says United's CEO, Gary Easterling, is the attention to building a common culture.
"The financials are critically important," said Easterling, who pointed out that the new credit union, which kept the United name, has grown by $200-million in assets since early 2007, to $950-million today. "But you also have to pay strict attention to the cultural aspects of the change. It's not just about making sure the new credit union is a better blend of the previous two and is more convenient to members. Members need to have a consistent experience no matter if they are being served by those who formerly worked at First Resource or those who worked at the original United."
The key is making sure the new credit union has the same culture throughout all of its locations, and that before the merger it's determined that the existing cultures can mesh. Easterling said it's about having all the employees speaking the same language and sharing the same value proposition with members-and getting leadership to align to those same core values, as well.
"It takes time," Easterling said. "Studies point to 18 months. I think just in the past six months we have really started to discover ourselves as the new United FCU."
But there are still times when staff, even pockets of employees, fall back on old ways, Easterling acknowledged. "It can be difficult on staff going through the changes that come with merger, especially if you are experiencing a lot of growth from that change. Those changes are not always positively accepted by all parties. You will discover that there is still a lot of 'us versus them' within the organization."
To overcome that, it sometimes takes one-to-one coaching. But the larger effort to make the massive change management shift is handled through daily communication between managers and employees, in team meetings, and in training sessions, according to Easterling. "You have to communicate, communicate, and communicate. When you think you said it the millionth time, they may just be getting it."
From the outset leadership has to be given talking points to make sure that their actions and language reflect the new shared values of the credit union. At United they are excellence, integrity, respect, innovation, and passion, Easterling said. "One of the biggest mistakes you can make is when leadership falls back into behaviors that reinforce the old culture. You try to avoid those missteps."
A credit union also needs to take a pulse check of employee performance at a time when the credit union feels the new culture is taking hold. Easterling recommended hiring outside resources to conduct spot checks. "It is interesting what you will find out. You think you have made significant strides, but you learn it's an uphill battle."
Easterling feels that the UFCU culture is in a good place today. However, he said the credit union is taking steps to ensure the culture becomes "embedded into our DNA. To move forward with a new credit union also means respecting the past, Easterling concluded.
"We are all part of team United now. But you do not want to ignore your legacy, you just don't want it to handcuff you going forward," he said.
