Marketer to CEO

The financial services industry is hyper-competitive. It’s also fast-paced and ever-demanding, with banking preferences evolving more quickly every day. Successful marketers must be leaders in a consumer-centric marketplace. They also make for a first-rate CEO.

Four marketers turned CEO share their tips for getting to the top: 

Knowledge = No. 1 Strength

“It’s no accident marketers know their members. It’s also a key advantage in getting the job done as CEO,” says CUES member Teresa Y. Freeborn, president/CEO of $1 billion/67,000-member Xceed Financial Credit Union, El Segundo, Calif., and a past CUES Marketer of the Year, CUES Future Leader and a 2014 inductee into the CUES Hall of Fame. “The numbers team can learn it, but let’s face it: Marketers breathe it every day.”  

Traditionally, credit union CEOs have been drawn from lending, accounting and operations—what Freeborn calls the “hard skills” sectors. Now, with the marketplace so thoroughly consumer-centric, it makes sense for directors to look to outstanding marketers as strong CEO candidates. 

“The numbers can be learned and figured,” continues Freeborn, who is a CUES director and past CUES board chair. “Knowing the consumer is a much more integral process.”

Capture the Best Practices

CUES member Bernie McLaughlin, president/CEO of $730 million/49,000-member Point Breeze Credit Union, Hunt Valley, Md., agrees that marketers see the business uniquely, through the eyes of the member. An advertising exec for 10 of his 34  professional years, McLaughlin spent another 20 as a marketing VP for several banks (one a mutual) and the last five in the credit union industry as CEO.

His climb to the top wasn’t automatic. In fact, McLaughlin hadn’t intended on becoming a CEO. “I didn’t want to do anything else but marketing at first,” he explains. “For me, it was marketing-only positions until 1997, when I became bored with doing a lot of the same things.”

At the banks, McLaughlin saw a gradual expansion of his duties that rounded out his expertise. “I also saw, learned and remembered all of the ‘best and worst practices.’ This experience enabled me to know, when I reached the level of CEO, what I SHOULD and should NOT do.”

Embrace Challenges

Freeborn recommends taking on at least two other business disciplines to broaden your base and at least one other management role. In her career, which spans four decades and seven credit unions, Freeborn has served in nearly every department and sector. Notable roles include VP at Central 1 Credit Union, Vancouver, British Columbia, and SVP/marketing and communications at Kinecta Federal Credit Union, Manhattan Beach, Calif. 

“Competition for the corner office is intense, so you can’t expect anybody to search you out. You have to put yourself out there and be somebody that others view as a leader,” explains Freeborn.

For CUES member and CUES Director Kim Sponem, CEO/president of $2 billion/130,000-member Summit Credit Union, Madison, Wis., the road to the top meant taking on every new challenge that came her way. When she was the CU’s VP/marketing, Sponem saw a need for training, proposed the department’s structure, and volunteered to start and develop the department.

When the CU sought to revamp its strategic planning process, Sponem took it on. This project led to the need for a more formalized HR function; she embraced that challenge as well. In time, Sponem was asked to manage the CU’s four branches, and was ultimately promoted to executive vice president. When the CU’s CEO retired, Sponem stepped in and served as interim for six months, and then the job was hers.

Understand Value Proposition

Sponem credits her move through the ranks to her willingness to take on new endeavors and broaden her expertise, but also her distinct understanding of the CU’s value proposition.

“Formulate a strong value proposition for members and then align everything with it,” clarifies Sponem. “I proved to our board that I was the one who held that vision, and could lead the credit union to fulfill its value proposition.” 

With a marketing background entrenched in consumer behavior, for Sponem, it’s only natural she start with the member experience first. “I very rarely start with the numbers. Instead, I look at the difference we’re making in the lives of our members.”

Taking it a step further, McLaughlin asserts: “CEOs who don’t understand the concept of their brand and value proposition will continually make decisions that are bad for the company.”

Be a Risk-Taker

Marketers like to see things happen and put things in motion. What better quality is there for a CEO? “We’re natural risk-takers in a risk-adverse industry,” continues Sponem. And most marketers have an interest in what drives people. 

Bottom line? If something needs doing, take it on. Build it. Make it happen. If you don’t see opportunities arising, ask your boss for a strategic project to give you experience and get you noticed. Take risks, and make sure, as a marketer, you are the one driving the CU’s value proposition.

Round Out Your Skills

It’s also crucial for would-be CEOs to step outside their comfort zone and volunteer for highly visible projects. “Get on an IT or ALM committee. Get involved in a project with the CFO or operations,” says CUES member Brett Noll, CME, CEO of $360 million/35,000-member Securityplus Federal Credit Union, Baltimore. “Become an expert in as many disciplines as possible.”

Noll began his CU career as a business development officer in upstate New York, not long after college when marketing jobs were scarce. He later moved to Toledo and formed the marketing department at Glass City Federal Credit Union, eventually supervising HR and operations. He was named SVP/marketing and business development at Langley Federal Credit Union in 2000, managing both member education and financial counseling. After several years, he took over the call center and a staff of 40.

“Managing the call center was a tremendous experience,” states Noll. “It gave me a chance to learn more about the roles other people play in the organization and strengthened my problem solving skills.” It was also the opportunity he needed for the next phase of his career­—his move to CEO.

Would-be CEOs need to prove their worth. For the marketer, it may be breaking away from the creative stereotype, to be seen instead as a leader in charge of moving product and driving sales which are integral to profitability.

Gain a broad perspective and understand how the CU operates as a whole. Immerse yourself in the depth of issues: get involved with HR and learn how staffing and branch operations impact growth and member satisfaction. Learn more about the ramifications of employment law. Fully understand the balance sheet and numbers as well as operations.

Know all of the Numbers, not Just ROI

Analyze NCUA call reports, understand asset/liability management, and know what drives profitability.  “Every marketer should be solid with the financials, even if being a CEO isn’t on their radar,” elaborates Freeborn. “If you can’t understand a balance sheet and income statement, or converse with your CFO about the financial aspects of the business, you won’t be considered a serious contender.”

McLaughlin also believes the only way to prove yourself is by your actions. “Elevate yourself beyond marketing strategies and tactics. Sincerely understand the credit union, how it makes money, and the overall needs of the business.”

Draw on the Abilities of Others 

No matter what a person’s original area of expertise, every savvy CEO puts together a talented team. These individuals should complement your skill set and fill in any gaps. “Building a talented team around you will increase any new leader’s chances for success,” elaborates Noll.

He is confident that his ability to select and align the talents of his team are reasons he’s a successful CEO today. “Everyone has strengths and weaknesses. You do the best you can to overcome weaknesses with hard work while recognizing leadership is not a one-person show. It’s the strength of the team, not any one individual, which allows an organization to succeed.”

Like Noll, Sponem appreciates this facet of leadership and a high level of collaboration. “It leads to creative thinking, and the ability to review problems and find solutions. It also brings people together, a skill most marketers naturally possess.”

Get Your MBA and Mingle 

In 2015, earning an MBA may very well be a prerequisite to becoming a CEO, in any industry. It’s not only a credential to get you in the door, but fine tunes your skill set and displays business acumen.

Aspiring CEOs should take advantage of educational opportunities within the industry as well. “Attend top conferences, such as CUES’ CEO/Executive Team Network, CUNA Schools, CUNA GAC, league, NAFCU, and vendor conferences,” recommends Freeborn. Circulate and get to know CEOs. “If you want to be a CEO, you have to hang with CEOs.”

Find an Amazing Mentor 

Noll considers himself fortunate to have had a compelling mentor early on. “My first boss at a credit union was a talented marketer who understood the financial implications of marketing. She taught me to see the value of creating and understanding the analytical strategy behind every project.” This process enabled Noll to speak clearly and confidently about the numbers, results and bottom line.

“Also find a mentor you can trust,” adds McLaughlin. “Only the test of time will assure you of that level of explicit trust. If your relationship remains intact over time, no matter what position you hold, you’ve found a genuine mentor.”

Let Your Talent in Communications Serve You

Unequivocally, marketers are superb communicators and collaborators. “The nature of their role calls upon them to inspire, engage and lead,” says Noll. 

For Freeborn, nothing is more important than her ability to communicate effectively when leading a diverse workforce. “Storytelling is valuable in leading your people, as well as communicating with a board of directors,” explains Freeborn. “As CEO, you have to be able to help the board see your vision for the credit union’s future.”

And if it’s not a strength already, master your public speaking skills. Connecting with an audience is an asset for any professional, but especially a CEO. Getting comfortable in front of and speaking to a crowd is a must-have competency, stresses Freeborn.   

McLaughlin recommends practicing, giving as many presentations as you can. “If you need extra help getting comfortable in speaking, incorporate storytelling to establish audience rapport. And don’t be afraid to pursue formal training.”

Master Your Craft

Shine first as a marketer and then seek professional recognition. Awards will capture the attention of your peers and those you wish to emulate. They can also boost confidence, signify your personal brand and highlight bottom-line results.

“Accolades lead to more success down the road,” imparts Noll, who readily admits doors opened after he earned CUES Marketer of the Year in 2004. “Once you’ve established yourself in your field, go back for more responsibilities. Prove your value to the organization.”

Don’t Limit Yourself

Like any job, it’s important to pursue the path of CEO for the right reasons. For McLaughlin, it was being able to run with the endless ideas crossing his mind in any given day.

“Being CEO, you can pick and choose what you work on and what gets approved. To me, that’s the joy that comes from being a CEO. I can also determine how to do things better—and treat my co-workers the way they deserve—as human beings.”

Once you’ve attained your goal and reached the pinnacle of CEO, realize the challenges are just beginning. “That inner-gut passion to lead is an absolute must. Otherwise, you’ll just go through the motions,” McLaughlin warns.

Every position has a stereotype to fight. Marketers, once considered corporate cheerleaders or the right-brained creative types, have evolved into talented leaders responsible for the bottom line and the CU’s value proposition.

 “It’s still not the norm for marketers to be at the top of the list for CEO, and the biggest obstacles for many marketers are the limits they place on themselves,” concludes Freeborn. “If you don’t think of yourself as CEO material, no one else will either.”

With 25 years of marketing and communications experience, Stephanie Schwenn Sebring established and managed the marketing departments for three CUs. As owner of Fab Prose & Professional Writing, her current focus is on assisting CUs and industry suppliers with their communications needs.