Credit Unions and Change: How to Change your CU to Better Serve your Members Pierre Cardenas, Sr. VP of Retail Amplify Federal Credit Union Austin, Texas
Who Are You? • January 2004 • Had gone through two VP’s of Lending in the last three years • Closed field of membership • Middle manager driven organization • Monkeys running the zoo • Lead by committee • Longevity • 64% LTS ratio • Running off of deposits • IBM went from 18k employees down to 6,800 • Membership increasing at a decreasing rate
When the pain of staying the same is greater then the pain to change, the commitment to reinvent begins. -Jude Sampson-
Culture Assessment Workshop Objective • To uncover, assess and evaluate the underlying assumptions around the appropriate ways to act, think, and feel at the organization in general, and globally assess leadership, people orientation, risk tolerance, and learning organization/systems thinking at present at the credit union. • To explore how our findings help or hinder our proposed organizational direction. Tangibles • An overview report of the culture survey & a culture identification report from the workshop detailing the specific (a) artifacts --visible and surface indicators of how things work at the CU (b) espoused values – initial explanations of what is done and (c) underlying assumptions – the true drivers of culture at IBMTEFCU. • Gap assessment of present and desired culture drivers. Cost • $4,500.00 (money back guarantee if we do not find it insightful and helpful in moving us forward)
Leadership • 7 Habits of Highly Effective People • Leading at the Speed of Trust • Coaching Begin with management and extend to all employees beginning in October of 2006
Define the Brand • What is it going to take? • How do you market it? • Understand the magnitude.
Build Your Brand • Elevate your brand • Brand awareness • Compete hard on your value proposition and not your rate • Do not compete on rate!
How serious are you? Tear down the old, reinvent!
One thing you all have is innovation and creativity • You want it done “Right”, correct? • Be very careful here (Warning) • Your definition of “Right” determines your culture. • Your culture determines your process. • Your process will determine your people. • And your people will determine your success. • Proverbs from Pierre • Innovate
Making the Big Moves • New hierarchy structure • Identify your IOC • Break the old regime (Al Qaida) • Spend all you make
IBM Retail Recommended and Organizational Structure Pierre Cardenas VP Retail • Teres, LL.com, FSP • Products/Rates • Work Flows • Security/Access • Reports • Testing, upgrades, new releases Indirect Lending Mgr Risk & Lending Manager Marketing Retail Delivery Manager • Portfolio analysis & migrations • Collections, Repos, Bktcys, Foreclosures • RE - Mortgage & Home Equity Lending • Credit Card portfolio management Retail System Administrator Business Development Central Review • Bring marketing and retail together for closer interaction & strategic planning • Bring Marketing & Bus Dev under one umbrella – closer communication & interaction • Establish one strategic initiative for Bus Dev, Marketing and Retail all working towards the same goal. Internet support and service Call Center Branches • High svc level consistency via all channels • Develop Sales Culture/ Cross Sell • Establish Universal Employees at all Branches • Build efficiencies into teller processes • Cash dispensing machines • MRO skill development – Mtgs, Consultant • Ensure all projects are aligned to strategic objectives • Consistency in methodology • Standards for communication • Minimize redundant activities
Manage People & Processes • Final key to solidify change. • New culture instilled; breathed and made part of the organization • HR Change – totally revamped the selection and hiring process
Purpose: Culture Shift • Define: Why is the culture changing? • Accountability (Positive & Negative) • Definition of culture: What does it look like, feel like, taste like, & smell like? • Rules of engagement • like STAR • relationships
Define Why • Supports our vision • Providing simplified solution thru portable banking • 24/7 access • Meet member needs and expectations • To be the leader in providing superior and innovative service and technology • To add to employee skill sets, enhance their marketability (internal and external) • To provide employees with a roadmap for how to behave in the new retail center environment • To support engagement in the community and our target market • Retain and recruit members
Accountability • Every employee responsible for upholding our culture • Review all actions/decisions against the cultural values mission • Hold each other to the values • Included in performance management documents/process • Included in employee recognition (champion award)
Definition of New Culture • Trustworthy • Professional • Respectful/considerate • Adaptive/Flexible/Adaptable • Informed/Knowledgeable • High level of integrity/ethics • Focused (on member needs, etc...) • Personable/Friendly • Competent • Confident
Definition of New Culture Cont. • Passionate – brand, products, member advocacy • Open – Honest – Straight forward • Technically Savvy • Proactive • Driven • Collaborative • Service Plus…………. • Caring • Accountable • Empowered
Rules of Engagement • Greet people on the human level first BEFORE conducting business • Maintain appropriate eye contact • Keep people informed –even if there is no news • Do what you say your going to do • Maintain emotional control • Be respectful of others time (arrive on time & prepared - convincing illustration $ value of Mtg • Be open to and respectful of others ideas, opinions, suggestions, views • Address concerns directly with those the concerns involve
Rules of Engagement Cont. • Interact with others with the goal of adding value • Remember the social niceties (please and thank you) • Use power words and phrases (“Absolutely”, “Definitely”, “thank you for asking”, “You’ve come to the right place”, “I’d love to help you with that”) • Be honest, be open and be respectful • Your coworkers are your customers too • All employees greet members, regardless of work assignment or title • Be consistent in our messages, processes, service level
WOW Stories • Mr. Bill Warren, a long time member, comes in to Cedar Park every day… but today he wanted to see me in my office… He said he had something very important to discuss with me. He told the story of how he had casually mentioned to everyone one day that he was looking for dollar coins. About a week later, out of the blue, he received a call from Jan, whom he does not even know that well, telling him she had located his coins at our PV location and offered to go and get them on her day off or to have PV hold them aside for him for him to pick up. I am particularly impressed with Jan's initiative in this case, as she has only just completed her first 90 days living the "Amplify culture". I guess some people are just born with it!
WOW Stories • We had a member come in who had run out of gas down the road. He was getting some cash to get some gas for his truck. When Chico heard what the problem was, he offered to loan the member the gas can in his truck and would have taken him back to his car, but the member already had a ride. WOW, CHICO! The member was naturally impressed the extra service.
WOW Stories • While helping a member, Jeri noticed that the member's Drivers License was going to expire next month and pointed it out to the member. The member said she realized it was going to expire but she wasn't looking forward to waiting in the incredibly long DPS office line and she was thinking about having her picture redone because she thought the current one was bad. Jeri convinced her that not only was the picture a good one, but that she should renew online to save time and frustration. Since Jeri had done it herself recently she told the member how easy it was and even helped her take care of it right then and there! The member was thrilled that it was all taken care of in a matter of seconds and as she was leaving even complimented Jeri to me saying how great it was that Jeri had taken the interest and time to help her. I thought it was a great and simple way that Jeri helped a smart, successful member achieve more.
WOW Stories • I have been with IBM / Amplify Credit Union for 15+ yrs and have always experienced good friendly service. However, since I began dealing with Robin Early she has continually exceeded my expectation. She truly puts the customer first, provides accurate information and her quick response time with a positive attitude is something I have never experienced in dealing with other banks. Whatever my financial needs may be, I always feel confident that Robin will make sure that I'm taken care of. Personal service not just another number approach. AWESOME JOB ROBIN !!! Thank you, Richard "Red" Gibbons
Amplify FCU's MoneyTracker Features Personal RSS Feeds • By Jim Bruene on June 11, 2007 3:49 PM When researching new mobile banking launches (see our Mobile Money & Banking post), we ran across one of the more innovative financial institutions in the country: Austin, TX-based Amplify Federal Credit Union <goamplify.com>, a $400 million asset institution with 40,000 members. The CU's tagline, Bank less. Live more. is right on target for the majority of financial consumers. • It's possible that Amplify uses more of the ideas we've featured in Online Banking Report and NetBanker than any financial institution we've come across. For example, cafe branches with free WiFi, mobile banking (WAP), Web 2.0 look and feel, high-yield checking (up to 5.1% APY), online chat, fee-based ($5.95/mo) value-add checking account (Amplified checking) loaded with online and mainstream features, and a host of other services from college planning to eBay bidding. One surprising omission: no blog. • OBR Best of the Web But our favorite feature, and winner of our fourth OBR Best of the Web 2007,* is Amplify's new personal finance management program, MoneyTracker. MoneyTracker uses natural language search so members used to Googling there way through the day will feel right at home.
Execute • Bring the People, Strategy and Operations together in concert • Set your expectations & milestones up front and manage to them weekly. • Tell people what results you are looking for • Reward people for producing those results • Take care of your superstars
Remember this: • There are organizations who’ve had it better than you and done worse. And there are organizations who’ve had it worse than you and done better. Your circumstances really have nothing to do with getting over your history. Past pains can make you bitter or better – the choice is yours. -John Maxwell, Failing forward