Extra Credit

I recently went one on one with Dan Berger. Dan is the President and CEO of the National Association of Federally-Insured Credit Unions, a membership association for federally-insured credit unions. Dan Berger first joined NAFCU in 2006 and has helped expand the association's reputation into becoming a premiere advocate for the credit union industry. Dan has been listed as one of the most influential lobbyists in Washington by The Hill every year since 2002. Under Dan’s leadership, NAFCU has grown its membership by 40 percent and now represents 54 percent of the industry's assets, while total association assets have grown 41 percent and revenue has increased 31 percent. Dan also served as chief of staff in the U.S. House of Representatives and has been an advocate and political strategist for trade groups including the Farm Bureau, Association of Realtors, and various insurance companies.

Adam: Thanks again for taking the time to share your advice. First things first, though, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks or challenges have been most instrumental to your growth?

Dan: Leadership is a topic near and dear to my heart that I can talk about for hours. To help your readers get to know me a little better, I am president and CEO of the National Association of Federally-Insured Credit Unions – NAFCU for short. We represent and advocate for the credit union industry in Washington, D.C., and I have the best job in Washington.

I say that because I am fortunate to work for an industry that is laser-focused on people – not profits. When you align your values with putting people first, you can live a much more fulfilling life. It is a great feeling.

I have long been a credit union advocate – even before it became my career. When I was nine years old, I first became a member of a credit union. My parents helped sign me up, and I've been hooked ever since. I saw firsthand what extreme member service meant, and I saw all the good credit unions do in their local communities. Advocating for this industry became my passion.

When I became CEO of NAFCU in 2013, we changed our focus. Trade associations in Washington have a habit of trying to be all things to all people, but at NAFCU, we focus on advocacy, compliance assistance, and education and training – that is it! And our members have supported us every step of the way. Because of this, we have grown our membership by over 40 percent in just over seven years and we now represent 54 percent of the industry's assets.

This is tremendous growth, but growth is never a smooth path upward. We have had our bumps and bruises, and I work hard on making sure I continue to improve at overcommunicating. No matter how many times you communicate on a topic there is always someone hearing it for the first time, especially during a high growth period. We work to make sure our staff stays in-sync and I take an active role here. 

Adam: You have been listed as one of the most influential lobbyists in Washington by The Hill every year since 2002. What are the key characteristics of an effective lobbyist?

Dan: It takes the same amount of energy to be nice as it does to be a jerk. That is not only a lesson for advocates, but a great life lesson, too. No one wants to work with someone who is difficult to be around. The best advice I can give is to always be respectful of others and value their time. Be prompt when arriving for meetings, be responsive to policymakers’ questions, and be sure to keep open lines of communication through proactive outreach and honest interactions.

The surest way to have a lawmaker’s door close on you or to burn a relationship is to undervalue the needs of others. 

Adam: What are the best lessons you have learned about leadership and relationship building from your years as a lobbyist, political strategist and political staffer?

Dan: Building trust is extremely important for great leaders. This trait instills a sense of respect and loyalty with employees, which ultimately strengthens your team's bond and drives successful outcomes. Whether as a campaign manager, congressional chief of staff or CEO of NAFCU, I work to build trust with my bosses and teammates. It takes constant effort and reflection to ensure that your actions align with what it means to be "trustworthy."

So much of a leader’s success is predicated on relationship building, and ensuring your teammates, peers and industry counterparts find you trustworthy will go a long way toward creating strong connections. 

Adam: In your experience, what are the defining qualities of an effective leader? How can leaders and aspiring leaders take their leadership skills to the next level?

Dan: Leaders can never forget the importance of servant leadership. As president and CEO of NAFCU, I have found getting buy-in is so much easier and a better way to lead than by throwing a hammer at the problem. While striving toward consensus is a noble endeavor, leaders must also be decisive and step up to make the hard decisions. Feedback and insights that offer unique perspective and knowledge from your team are invaluable during this process.

More so, genuinely caring about the well-being of your team and the people that work with you – particularly during this pandemic – is as important as ever.  Honesty and integrity in communicating with employees helps motivate them to be the best they can be.

Adam: What are your three best tips applicable to entrepreneurs, executives and civic leaders?

Dan: They turn words into action. That is what great leaders do. To do that, you must build personal connections, be a strong communicator, and prioritize people – "people" being your team, your members or customers, and your stakeholders. 

To build personal connections, leaders must show humility and share vulnerabilities. We are all human, and acknowledging our faults and imperfections is key to connecting with others.

To be a strong communicator, a leader has to offer a clear vision and outline a transparent process for success. They have to give guidance and feedback along the way to help coach individuals as they grow personally while assisting the organization to reach its goals, too.

And to prioritize your people, you must equip your team with the resources they need to thrive in a work environment. I have learned that when we set up our employees for success, they set our organization up for success by ensuring our members receive the products and services they need. 

Adam: What is your best advice on building, leading and managing teams?

Dan: We hire for attitude and aptitude. There are a lot of folks out there who have the technical skill set and the knowledge you're looking for – which are traits we highly value, too – but it is important our employees are strong team players and have good character. When your team works together, flows together, and shows up together, great things happen. It has been the key to our success. Skills can be taught; character and attitude are harder to change. 

Adam: What should readers understand about credit unions and the credit union industry?

Dan: Unlike banks, credit unions put people first – not profit. As not-for-profit, member-owned financial institutions all earnings roll back into the pockets of a credit unions’ membership via lower interest rates and higher interest paid on savings accounts.

Credit unions do not have to deal with Wall Street analysts as our institutions have no shareholders. In many ways, this is a blessing in disguise as credit unions can obsessively focus on member service as opposed to a stock price.

Credit unions operate with a much more empathetic, consumer-focused culture. And it truly is a major difference in the way they do business.

Adam: What is the single best piece of advice you have ever received?

Dan: Be 1 percent better every day. Over time, these small improvements add up and you become a better leader, colleague, and person because of these changes. You sometimes find individuals that swing for the fences in a sense and look to improve themselves in one fell swoop. Personal and professional growth is life long, and each day we must make a concerted effort to improve ourselves. In the long run, consistency and determination have proven to be the best approach here.