NCUA’s Next Moves: Downsizing, Decentralizing, and Disrupting
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Jun 3, 2025
A significant downsizing at NCUA is underway, with a 25% workforce reduction that raises questions about future structure and staffing. The influence of Trump's mandate for smaller agencies is explored, alongside historical lessons from past reorganizations. The potential shift in reporting lines and decentralization may redefine how the agency operates. Legal implications of certain changes are considered, as well as the fate of various departments. Will high-value work be the priority, or will regions face the axe? A fascinating look into the future of NCUA awaits!
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Mark's Early NCUA Reorg Experience
In early 2000s NCUA restructuring, reorgs caused confusion and inefficiency.
Despite pain, such reorganizations sometimes create the illusion of progress necessary for adaptation.
insights INSIGHT
Challenges of Reorganizations
Reorganizations often create the illusion of progress while causing confusion and demoralization.
Change agents face resistance from those benefiting from the old system and lukewarm support from potential beneficiaries of the new one.
insights INSIGHT
NCUA's Consolidation & Focus Shift
NCUA plans to consolidate business units and increase supervisor-to-employee ratios.
They aim to shift headquarters functions to regions and focus only on high-impact, mission-critical work.
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Episode Summary: In this episode, I dive into what NCUA might look like after its May 22nd downsizing — a 25% reduction in staff driven by Trump-era mandates for smaller government. Using clues from the agency’s own language, historical precedent, and my firsthand experience with past reorganizations, I lay out my predictions for NCUA’s evolving structure.
This is part three of a special podcast series unpacking the agency’s potential realignment.
Key Topics Covered:
📉 25% Workforce Reduction: Who’s leaving, and what that signals for the future.
🏛️ Trump’s Mandate for Smaller Agencies: How it shapes NCUA’s staffing and budget decisions.
🗂️ Reading the Tea Leaves from Slide 13: Consolidation, decentralization, and “high-impact” work.
🔁 Past is Prologue: Lessons from the early 2000s restructuring under Chairman Dennis Dollar.
📊 Who Reports to Whom?: A detailed review of the current org chart and likely changes.
⚖️ Legal Implications: Why some moves (like eliminating ONES) may require board votes or rule changes.
🧩 Likely Office Shifts:
OMWI, Ethics, and Board Secretary to new homes
Potential absorption or elimination of CURE, ONES, and AMAC
Field of Membership functions back to the regions
🔍 High-Value Work Only?: Implications for DEI, affinity groups, and central office roles.
📍 Draconian Possibilities: Could NCUA eventually eliminate regions or relocate HQ?
🧠 Machiavelli & Reorgs: Why changing a system brings both enemies and uncertainty.
Quotable Moments:
“Reorgs can create the illusion of progress while producing confusion, inefficiency, and demoralization.” — Quoting Pétain“For the initiator has the enmity of all who would profit by the preservation of the old institutions…” — Niccolò Machiavelli
Why It Matters: Whether you're a credit union exec, examiner, or industry observer, understanding NCUA's likely future state can help you prepare for changes that could affect regulatory oversight, staffing, and even strategic planning at your institution.
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