There’s one question you need to ask during your credit union leadership training: “Shall we play a game?”
That’s the question the supercomputer asks Matthew Broderick’s character in the 1980s film classic, “War Games.” The resulting “game” ends up being a realistic simulation that almost causes World War III.
But most war games aren’t so hazardous. In fact, it’s more hazardous not to perform them. There’s a reason the American military war games different scenarios. They want to prepare for the worst. Even if it hasn’t happened yet. Even if it never happens.
Your leaders must do the same.
Here are three war game exercises for credit union leadership training to help you prepare for the worst, whether it arrives or not.
#1: The Reputation Crisis That Isn’t Your Fault
Situation: On a Friday afternoon, you begin receiving a wave of calls and complaints. Debit cards aren’t working. Online banking is down. Negative comments pour into social media. The problem? A core system outage. Not your fault…but everyone sees it that way. Leaders must decide how to manage PR, how to support staff and how to preserve consumer trust.
Possible Curveballs: A competitor publicly jabs at you and advertises they’re up and running. The core vendor gives you no ETA. Some consumers are stranded without financial access.
Questions to Answer: What should you communicate in the first hour? What should managers tell employees so messaging is consistent? How do you protect your reputation without blaming the vendor?
#2: Major Fraud Losses
Situation: A coordinated fraud ring scams your consumers out of enough money to cause both financial and reputational impacts. Policy limits reimbursement…but what does that mean for your public image?
Possible Curveballs: The issue involves multiple vendors. Legal cautions against saying too much, even as people demand answers. A victim’s social media story goes viral.
Questions to Answer: How do you communicate publicly without creating liability? How do you put consumers first when policy limits reimbursements? What support do employees need?
#3: Growth vs. Risk Appetite
Situation: Loan growth precipitously falls. Competitors are taking business and loan officers are losing deals. There’s a proposal to loosen underwriting standards, which could increase approvals…but could also increase delinquencies. What do you do?
Possible Curveballs: Growth increases quickly but delinquencies rise nine months later. A shift in underwriting also requires investment in retraining, new communications and collections.
Questions to Answer: Where can you grow responsibly without weakening standards? How do you protect consumer trust and increase approvals? What metrics should you monitor each month?
Practice Makes Perfect
Usually, these articles give you the answers (in some way, shape or form). But this time, it’s giving you a tool. The right solutions for these scenarios depends on your unique situation – your market, your team, your community relationships. Walk through these situations with your senior leaders and managers in credit union leadership training.
Practice. Stay prepared for the worst. Just in case.
And if you want a professional facilitator to walk you through each war game scenario (and plenty of other great lessons), we provide regular credit union leadership training to organizations large and small. Book a free consultation now to get started.
FAQ
Q: What is a leadership war game?
A: A war game is a structured exercise where leaders walk through hypothetical crisis or business scenarios to prepare for real-world challenges before they happen. Just as the military war games different scenarios to prepare for the worst, organizations use war games to stress-test their decision-making, communications and policies.
Q: Why should organizations run war game exercises?
A: It is more hazardous not to run them. Practicing difficult scenarios helps leaders align on messaging, identify gaps in policy and build confidence so that when (or if) a real crisis hits, the team is ready. The right time to make mistakes is in a simulation, not in an actual emergency.
Q: Who should participate in a war game exercise?
A: Senior leaders and managers should walk through scenarios together. Having multiple levels of leadership involved ensures consistent messaging and exposes blind spots across departments.
Q: Are there universal “right answers” to these scenarios?
A: No. The correct solutions depend on your unique situation — your market, your team, your community relationships and your organization’s values. These exercises are tools for discovery, not scripts.
Q: How do we run one of these exercises?
A: Gather your senior leaders and managers. Present the scenario, introduce curveballs as the discussion unfolds and work through the guiding questions together. The goal is discussion, alignment and identifying gaps — not a single “correct” answer.
Q: Can we get professional help facilitating these exercises?
A: Yes. Professional facilitators are available to guide organizations through these war game scenarios and other leadership training topics. A free consultation is a good starting point for organizations of any size.
