Brent Dixon

From Brent Dixon:

The cooperative movement has a problem with aging. Average age of cooperative members and employees is over a decade older than the average age of people in the US and in Canada.

We feel this pain in the credit union industry. The average age of a credit union member is 47, and 75% of credit union board members are over 50.

Because of economic, technological, and cultural changes, financial services – and many other business sectors – have hit what the smart folks at McKinsey & Company call a “Structural Break,” which is:  “…the moment in time- series data when trends and the patterns of associations among variables change.” (via)

What does that mean? It means things have changed and we cannot continue to do things the way they’ve always be done.

If you went to business school you remember the chart that appears with this post on the life-cycle of an industry.

All signs point to credit unions, and many of our cooperative brethren, being right smack on X. This means we can go one of two ways, and have to fight for the future of a model we know is better for our communities. And if we don’t inject new blood, new energy, and new ways of solving problems into our cooperatives, they will die.

We need to recruit and invest in young talent.

At the Filene Research Institute, a think-and-do-tank for credit unions, we learned that the top reasons young people work for credit unions include:

•   The opportunities to influence strategy immediately

•   The opportunity to work with and learn from top leadership from day one

•   The opportunity to help their community

In talking with young people across credit unions, we also learned that because young credit union employees are somewhat rare, many of them feel like an island while at work. They were starved for ways to connect with other like-minded people their age.

Ed Filene, father of the U.S. credit union movement, once said, “Youth is too serious to become obedient.”

That in mind, a group of young credit union people, myself included, decided to take the problem into our own hands. Through a series of small grassroots meet-ups that spun wonderfully out of control, we’ve nurtured and grown The Crash Network, a growing community of close to 200 young credit union professionals. The community is designed to enable:

•   Ongoing connections and support from like-minded people through an online network at http://crash.coop.

•   Opportunities for professional growth and development through action (One example is: The Collider, an innovation tournament designed to improve the problem of affordable housing).

•   Mentorships with seasoned industry veterans.

A year and a half in and we’ve initiated countless development projects, sparked spin-off youth development organizations across the U.S, piloted a mentorship program, and given a voice to a growing number of young credit union employees who are ready to step up, get their hands dirty, and create the future themselves.  You can watch a short video on some of the voices of The Crash Network here.

We have a lot to learn, and can’t wait for what’s next.

Brent Dixon, Young Adult Advisor for the Filene Research Institute, will be presenting on building a younger cooperative at the upcoming CUNA Community Credit Union & Growth Conference.  This post was originally published for the National Cooperative Business Association (NCBA).

Beth Soltis

From Beth Soltis:

Some credit unions have asked me whether they should do a compensation analysis when they have frozen salaries and have not budgeted for pay increases in 2011.  The answer is an unequivocal yes.  And I’ll explain why.

First, recruitment and retention efforts should be tied to an organization’s market position.  How do you know what components of your compensation package to highlight if you don’t know where you stand in the market?  How do you know how to converse with employees frustrated by stagnant pay if you don’t know where you stand in the market?  Your market position can shape how you present your compensation package and how you communicate with employees about it.

Second, how can you motivate your employees to perform at their best if you don’t know where you stand in the market?  Appropriate (affordable, cost effective, and in line with market demand) compensation levels encourage and reward high performance, which in turn drives organizational performance.  Knowing your market position is crucial in developing motivation and reward strategies.

Finally, it is essential to monitor your compensation plan to ensure it is successful.  A successful compensation plan meets three key criteria – internally equitable, externally competitive, and accurately reflects the credit union’s compensation philosophy – according to CUNA’s 2010-2011 Complete Guide to Setting Salaries.  And the only way to be sure these three key criteria are met is to do a compensation analysis.

A lot of credit unions are in the position of being unable to provide pay increases to their employees.  In the 20+ years that CUNA has conducted the Complete Credit Union Salary Survey, we have never seen numbers like this: 43% of credit unions with $1 million or more in assets initiated a salary/wage freeze in 2009, according to CUNA’s 2010-2011 Complete Credit Union Staff Salary Survey. This percentage has almost doubled from 23% in 2008. Additionally, 43% of credit unions anticipate doing so in 2010.

And credit unions are not alone.  In fact, 64% of employers froze pay increases in the last 18 months, according to a 1st quarter 2010 study by Buck Consultants. However, due to the impact of heavy workloads and stagnant salaries, experts advise employers to analyze their ability to provide wage increases and/or variable pay to reward and retain their employees as soon as business conditions allow.  And whether or not employers can provide pay increases, at a minimum they should acknowledge the heavy workloads employees are shouldering and show appreciation for employees’ efforts.

Obviously, credit unions can only pay what they can afford.  But armed with the knowledge of where compensation falls compared with the market, credit unions can ensure the effectiveness of their recruitment and retention efforts, their motivation and reward strategies, and their compensation plan.

Have you conducted a compensation analysis lately?  What benefits and improvements have you seen after completing your analysis?

Beth Soltis is the Senior Research Analyst for the Market Research department at the Credit Union National Association.

I re-read “Orbiting the Giant Hairball” by Gordon MacKenzie recently.  This book is about how to think outside the box without getting sucked into the politics and ‘norm’ of your organization.  A must-read in my opinion (and a must re-read!).

In an interview with Fast Company MacKenzie defined the corporate hairball as:

“An entangled pattern of behavior. It’s a bureaucracy, which doesn’t allow much space for original thinking and creativity. It’s the corporate tendency to rely on past policies, decisions, and processes as a formula for future success.”

Brilliant! A free-pass of empowerment to your own ideas and the ability to share them with leaders of the organization to grow, modernize, and revolutionize it!!… If only it were that easy.

In Courtney’s post about culture, we find that there are two thoughts, a culture of fear and one of love. It seems only natural that those who work in a culture of love will be more apt and able to orbit the political hairball of your credit union.

It’s not that the hairball is an unnecessary element in the workplace; each organization needs a strong foundation to rely on. There is also a necessity for change, and that is very difficult in an established workplace. People shy away from change, it’s difficult to learn new things, try new elements (what if it fails – GASP!), and change long-lasting procedure that has been on the books since Reagan was in office. But change is the essence of life. Without progress (which is change, nonetheless) we cannot move forward. Who do we look to for bringing evolution into the CU industry?

Credit union folks are sharp. Anyone in the industry has the ability to unlock the next ‘big thing’, what goes awry is their fear regarding thinking outside of the box, orbiting that giant hairball of bureaucracy, stagnant ideas and old policy. Many people feel that bringing new ideas to the table is a waste of time thinking “why would they change this for my ‘out there’ idea, what if it doesn’t work? Will I get fired? …I should just keep my mouth shut”.  And boom, another brilliant idea lost to the hairball.

What can you do? Praise creativity! You may not know it, but there’s a very bright light bulb in your staff just waiting to be turned on. Make sure you don’t bypass this opportunity by cutting the power before it gets a chance to shine. In the words of Gordon MacKenzie:

“It’s hard for corporations to understand that creativity is not just about succeeding. It’s about experimenting and discovering.”

Theresa Hilinski

From Theresa Hilinski:

We’ve all had that (sometimes unavoidable) feeling of: What am I doing here?! OR Where am I headed?!  Maybe you thought this would be your dream job, or thought the promotions would come quicker as you busted your bum working late and taking on duties not even assigned to you.  Whatever the situation, the reality has hit and you are sitting in the same spot, just waiting for that encouragement, or sign that your career is taking off.

“When you realize your career is a result of choices and not conditions, the effect is absolutely liberating.” -Dr. Kevin Freiberg, Author of BOOM! 7 Choices for Blowing the Doors Off of Business-As-Usual.

Amen, Dr. Freiberg!  Instead of sitting back and waiting for what you think should unfold before your eyes…you need to take a page out of this book (actually more than just one) and get moving.  Are you seizing the opportunity to move on options you have in front of you everyday, or letting them slide by because you think your situation is out of your control?  Just as you have the choice to go for super-size fries vs. carrot sticks; you have the choice to sit tight or move yourself forward.

Once you’ve made the decision to step it up a notch, here are a few ideas/tips to set the wheels in motion, and some reminders to keep accelerating.

Be a Leader

Don’t simply solicit ways to get a title to boost your resume.  Instead, seek opportunities that give you a chance to legitimately lead.  Maybe it’s a project at work that someone needs to take the torch on, or it’s an outside activity within your community that needs a team leader.  Most importantly, don’t shy away from leadership roles because of lack of experience.  Everyone needs to start somewhere…and if you have the passion, you can learn to lead.

Be Accountable

You are a grown-up.  Long gone are the days when you can promise to clean up after the dog, just to get a pet.  Simply put, being accountable means sticking to your word.  Do what you say you’re going to do, and even more importantly, don’t offer to help when you know you can’t take on the work.

Be Respectful

Any grandparent or great aunt/uncle has probably told you: Respect your elders.  Although they may not have mentioned it, they probably should have included anyone in authority in their words of advice to you.  Whether or not the person in authority deserves the title, the reality is that they have it.  By being disrespectful, the only thing you will gain is bad PR for yourself.  It is smarter to earn recognition for the respect you exhibited vs. the bad attitude you had against someone you thought wasn’t worthy.

I know what you’re thinking…what an insightful quote this blog posted started with – how can I hear more about this author?  That’s easy – make the choice to attend CUNA’s Community Credit Union & Growth Conference.  Dr. Kevin Freiberg will not only be presenting, but you will receive a free copy of his book.  Checking out the lineup is easy (there are plenty more awesome speakers to hear from), just visit: community.cuna.org.  I hope to see you in Boston.

Theresa A. Hilinski is Vice President of the Philadelphia Chapter of Credit Unions and also holds a CUDE and DEUK designation.  Theresa is participating in CUNA’s VIP Network for Young Leaders at this year’s Community Credit Union & Growth Conference.  You can e-mail cunaresources@cuna.coop for information on the VIP Network and inquire about a special discount available for this year’s conference. 

The CUNAverse team has been discussing the impact of the recession on our business, our lives, credit unions and organizations in general. The new views of how we do things, increased workload, uncertainty of markets and the future have been a part of our conversation as well as the silver lining and a new appreciation for camaraderie, stability and new ideas at work.

One question I wanted to research more thoroughly was about the professional future for the survivors of the downsizing and “doing more with less” environment many work places have experienced since 2008.  What is the professional fate of those who have spent so much of their last two years weathering the economic storm?  And specifically, what will this mean to credit unions?

I didn’t have to look far to find the employee retention rate at credit unions has increased over the last two years to 88% according to CUNA’s 2010-2011 Complete Credit Union Staff Salary Survey Report.  Nationally, the Bureau of Labor Statistics reports the number of quits continues to hover around its lowest point in the last 10 years.  Quits tend to rise when there is a perception of another job being available and vice versa.  So, what’s a credit union to do as we approach the rebound of the economy and the potential for turnover to rise even amongst your most star employees?

Here are some tips to consider when preparing for the very high likelihood of a turnover increase at your credit union in the near future:

• Invest in Supervisor Training

A study by the Gallup Organization found that the top reason employees quit their job was not due to compensation, benefits or the type of work, but due to a poor working relationship with their supervisor.  Given the costs of turnover to your credit union in recruiting, training and retention, review the investment your credit union makes in supervisor or management training to ensure your managers have the talent and know-how to maximize the employee relationship and understand each employee’s desires and goals.

• Support Ongoing Learning & Recognition

Working with credit unions that use CUNA’s training programs, I hear firsthand the difference our programs make in credit union careers.  Whether it’s attending a conference and earning a national certification or taking an online course to earn a certificate of knowledge, ongoing learning and recognition can lead to higher job satisfaction and development of skills that benefit the credit union.

• Understand Compensation & Benefits

While dollars and insurance aren’t the only factors of whether an employee stays with or leaves your organization, be sure your credit union is competitively positioned in your marketplace.  Using resources online or CUNA’s staff research resources are a couple ways to make sure this isn’t the missing part of your employee equation.

• Create a Positive Work Environment

No one wants to go to work each day dreading the decisions they have to make or the people’s actions and behaviors he or she comes across.  So, what have you done lately to improve the work environment of your credit union?  This doesn’t take a management position, but it does take a leader to initiate the expectation of being genuinely concerned for those around you.  A positive work environment and positive relations with co-workers can be two of the most powerful retention tools, so do your part to start a company initiative or just send a personal note of appreciation.  Small and large actions can get you far in this category of increasing job satisfaction and making people enjoy coming to work.

Source: DesktopNexus Abstract

Lately I have been thinking a lot about culture. Merriam-Webster defines culture as “the set of shared attitudes, values, goals, and practices that characterizes an institution or organization.”  Culture, undoubtedly, has a significant effect on an organization’s success or failure.

One of my favorite books is The Mastery of Love by Don Miguel Ruiz. Although it is written as “a practical guide to the art of relationship,” Ruiz’s philosophy can just as easily be applied to culture. Ruiz (and many others) speculate that everything in life can be viewed in terms of love and fear.

I am willing to bet that organizations with strong cultures tend to lead out of love. Think about your own organization. Are you surrounded by people who act out of love, love for the members they serve and love for the credit union movement?

People who act out of love are passionate about the work they do and the difference they make in the lives of others.  Conversely, people who act out of fear are apprehensive, anxious and terrified of making mistakes or of losing their jobs. People who act out of fear tend to take things personally, and may have a difficult time making the connection between the part they play and the bigger picture.

One company that seems to lead purely out of love is Zappos.com. Founded in 1999 with almost no sales, in 2008 they surpassed $1 billion in sales. Not only is Zappos a successful business, it is consistently rated on Fortune’s 100 Best Companies to Work For.  When asked what the company’s biggest asset is, CEO Tony Hsieh’s answer is always the same: the culture.

Zappos culture is based on 10 Core Values:

1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and A Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships with Communication
7. Build a Positive Team and Family Spirit
8. Do More With Less
9. Be Passionate and Determined
10. Be Humble

These core values play an integral role in how Zappos hires, trains and develops their employees. And these values aren’t just lip service. The Zappos 2009 Culture Book is filled almost entirely with emails from actual employees on what Zappos culture means to them. The comments were solicited from Hsieh, himself, who asked:

• What does the Zappos culture mean to you?
• What’s different about it compared to other company cultures?
• What do you like about our culture?

Many leaders are afraid to ask their employees questions like this because they are terrified of the answers they will receive. Hsieh asked these questions out of love. He has faith that, “If we do the right thing, then in the long run we will succeed and build something great.” 

What about you? What does your credit union’s culture mean to you? What do you like (or dislike) about your culture? Does your organization act out of fear or out of love?

Source: NorthernSun

I’m sure something like this has happened to you – a negative experience with a company that could have been saved so easily.

Last week my daughter developed pink eye after our normal pharmacy was already closed so I was sent to the other pharmacy in our area.  The pharmacist mistakenly declared there was no co-pay for the purchase and sent us on our way.  A few days later, I received an angry phone call from someone else at the pharmacy who was shocked that this mistake had happened. They went on to slam the poor guy that made the mistake, and demanded I come in immediately to pay for the prescription.  So back to the pharmacy I went.  I had to explain the situation to four different employees and wait for 45 minutes while they discussed how to proceed right in front of me.  Turns out their system couldn’t accept my $10.00 at this point due to how the initial mistake was entered. Again, they mentioned how stupid the first guy must have been and now the person that called me was an idiot in their eyes too.  Eventually, they agreed that I had waited long enough and it was time to let the $10.00 go.  They apologized for the inconvenience and sent me on my way. 

There were a few opportunities throughout this whole ordeal that the negative experience could have been turned around, but those opportunities were wasted.  Finally, waiving the co-pay could be viewed as a last ditch effort to save the interaction, but it was too late – the amount of time I ended up wasting with this pharmacy and how negative they made me feel certainly won’t be forgotten. 

Parts of this experience could have possibly been blamed on just one of the employees or even attributed randomly to the circumstances – but the whole experience had me really questioning this particular company and even more specifically their lack in arming their front-line staff with the training and tools necessary for recovery.   Studies show that some of the strongest customer loyalty comes not from smooth customer service experiences but from those times when something went wrong and the company did a stellar job in making things right.  

According to Celeste Cook, President/CEO of cuSrategies and opening keynoter for this year’s CUNA FUSE “Frontline staff is the face of your institution.  They have mega influence on whether you prosper, earn client loyalty, and develop new relationships.  Everything frontline employees do and say or don’t do and say impacts growth and retention.”  Cook shared these insights about the connection between employees and growth and retention in a recent article for Branch Manager’s Letter.  She goes on to state that “The touch points and opportunities afforded frontline staff to build and strengthen client relationships are far greater and have a far greater impact on growth and retention than any other delivery channel.”

With frontline staff at credit unions playing such an important role it is imperative that they be ready to handle all member interactions, even the really negative ones, as an opportunity for growth.  What about the frontline staff at your credit union?

•  Do they see the importance of the job they are doing and how strongly that can impact the success of your credit union? 
•  Have they been provided with adequate training? 
•  Are they rewarded for exemplary service to members? 
•  Are they empowered to do what is necessary to turn a negative member experience into a positive opportunity for the credit union?

I’m hoping that the answer is yes to most of the above questions, if not, what are you doing to ensure a simple $10.00 transaction doesn’t turn in to the loss of a loyal member?