Complete An ‘Emotionally Intelligent’ CU Merger

By Ronald Young

Mergers will continue to be part of life for credit union members and employees. The number of federally chartered credit unions fell 35.7% between 1990 and 2004, bringing the current total to just less than 9,000, according to the Credit Union National Association’s economics and statistics department.

Most mergers involve healthy credit unions combining to improve marketability and financial security. And merger participants pay attention to adequate due diligence, marketing, business plans, facilities, risk management, governance, and managing assets. But one merger component usually is missing: the emotional experience among members, employees, executives, and board members before, during, and after the merger. Paying attention to the emotional components of the process creates “emotionally intelligent” mergers.

Emotional intelligence is the ability to use emotion to think more critically and to think more critically about one’s emotions. The concept is grounded in the notion that our emotions constantly provide information. Emotions contribute to both workplace dysfunction and accomplishment. Successful individuals and organizations perceive, understand, use, and manage the emotions that are present.

During a merger, some members and employees may have a sense of loss, or may feel overwhelmed by the task at hand. To achieve an emotionally intelligent merger, add these considerations to the merger check list:

1) Anticipate emotions rather than react to them. Transitions spark emotions. Address how you’ll acknowledge the emotions people may experience. Don’t assume everyone will be happy about the merger.

2) Communicate a sense of invitation. This will foster motivation. An emotionally intelligent credit union merger communicates a sense of invitation to members, employees, executives, and directors. Explain how the merger will improve options, choices, and opportunities.

3) Involve people in the process. The transition isn’t just about changing account numbers and logos. It requires involvement and interaction with new parties. Build new relationships by creating opportunities for interaction, such as open houses, focus groups, surveys, celebrations, ribbon cutting ceremonies, and so on.

4) Create a new climate. The new organization’s climate will determine whether members, employees, executives, and board members stay or leave. Hold a meeting of employees, board members, and members during which the CEO asks, What kind of feel do we want in our credit union? What kind of place do we want this to be? What kind of energy do we want to emanate from this credit union into our community?

Critical thinking, sustainable workplace relationships, and emotional intelligence are inherently intertwined. One enables the other—and one can impede the other. As the phenomenon of credit union mergers has unfolded, a great deal has been learned about the critical thinking that needs to attend such a process. There is perhaps still more that can be done to integrate the often sidelined emotional intelligence component.

Ronald Young, Psy.D., is president of Ron Young Associates Inc., Sacramento, Calif. He’s an organization development consultant and executive coach. Contact him at ronyoung@coachingtogrow.com.