It never makes sense for a business to try and hide something from its stakeholders. The costs are simply too high, even if it is never found out.
Secrecy flies in the face of the way we operate today…in a world where everyone feels entitled to know everything, where there are open discussions online that are free for anyone to join with the click of a mouse, and where people expect businesses to do the right thing.
Enter the recent Toyota situation…a massive recall from a company that has been heralded for years as a champion of quality…a standout against the competition enjoying a reputation that implicitly built a trust with their customers and said that we care about you.
But as the “real” Toyota story in this situation continues to emerge, we’re learning more and more about who knew what when and about the decisions that were made regarding the defects that have now become the lead topic on the evening news.
And Toyota is beginning to experience the impacts of not being transparent is focusing the conversation and forever changing the game that the company will play–when people see evidence that you intentionally decided not to act when you had information about a potential problem, trust is shattered, loyalty is lost, and the battle for success is redefined.
So what does this mean for credit unions?
One thing: Never consider opacity as a strategy…you’re member owned and your members need to know the truth, that you are protecting them and their money, and that you can be counted upon to do the right thing.
ACTION ADVICE: Should you find yourself in a situation where negative information needs to be communicated to your members about your credit union, take the time to explore and discuss the alternatives carefully. Then craft a communication campaign that provides clear and consistent messages that demonstrate how the decisions you have made protected the members and their investments in the best possible way. And always pay the short term price…it is merely an expense paid to secure member trust and support in the long term.
