Mark Arnold > speaking • branding • planning

What Business is Your Credit Union In?

We often label businesses. Apple and Google are technology companies. McDonald’s and Wendy’s are fast food chains. Wal-Mart and Target are retailers. So what business is your credit union in? Hopefully you didn’t answer “banking,” “credit union,” or “finance.” Boring, boring, boring. And not really all that accurate.

Thinking your credit union is in the finance or banking industry is short-sighted and limits you. Here are a couple of examples to consider. Chick-Fil-A does not consider itself in the fast food industry. Rather, they see themselves (and try to position their brand) around service. Another example comes from Starbucks. One of their front line employees—not their CEO—famously said, “We’re not in the coffee business serving people. We’re in the people business serving coffee.” In the book Grow, John Hendricks, founder of The Discovery Channel, said, “When we launched in June 1985, I told everyone, ‘Let’s not say we’re in the cable business.’ I didn’t want us to limit ourselves.”

So what about your credit union? What business is your credit union in?

Here are some possibilities:

(1)    People—First and foremost, credit unions should be about people. Go ahead and trot out the phrase “People Helping People.” The phrase may be outworn and outdated, but the principle is still true: credit unions are (or should be) about people. If you put people first, the profits will come. Applying the Starbucks quote, “credit unions are not in the financial services business serving people; we’re in the people business serving financial products and services.”

(2)    Service—Many financial institutions are trying to compete on service. And that’s the problem: it leads to little differentiation. However, from an employee mindset and brand positioning perspective, credit unions should be in the service industry. That means fast, friendly and engaging service.

(3)    Money—One long-time credit union board member once told me, “if you want money, we have it; if you have money, we want it.” We handle people’s money; that’s what credit unions do. But it’s more than just money: money is just a means to an end for most folks. The money helps people send their kids to college, buy them their first home, retire to their dream spot, or accomplish some other lifelong goal. But credit unions are the ones who can help with the money side of the dream.

So what other business do you think credit unions are in?

10 Steps to An Effective Board Meeting

Board meetings—you have to love them! Because if you don’t, you will soon go crazy as an executive. Like any meetings, it’s easy to get a board meeting off track and derailed to the point where the time spent becomes dysfunctional. I’ve heard from some credit union board members that their meetings can take as long as three hours!

We all want better board meetings. But how do we accomplish that? Here are ten steps to a successful board meeting:

(1)    Ask, “Do we really need to meet about this?”—As a general rule, you don’t need to meet if you can handle some issues with a phone call or an e-mail. In other words, don’t try to cover every issue in one board meeting.

(2)    Put the meeting objectives in writing—Make sure all topics are listed and try to come to a resolution on the hot issues (don’t debate just to debate).

(3)    Don’t try to do too much—This is where many boards can get derailed. Be sure to focus, focus, focus.

(4)    Set the agenda—Obviously, do not meet without an agenda (putting together an agenda also helps ensure you aren’t meeting about too many items).

(5)    Establish time limits—This is the best way to make sure board meetings don’t go too long. Put the time you will spend by each agenda item. If you need more time, then vote and reallocate time as necessary.

(6)    Brief the executive committee before the meeting—While a full meeting review is unnecessary you don’t want the executive committee to have any surprises during the actual meeting.

(7)    Keep the meeting on track—Physical surroundings are also important. Make sure interuptions are kept to a minimum and cell phones are turned to silent mode.

(8)    Remember every board member has a role to play—Make sure you are valuing everyone’s opinion, even if it is different from the group.

(9)    Close the meeting with next steps—Not every meeting will have follow-up items, but many will. Everyone needs clarity about action steps and deadlines.

(10)Follow-up with the minutes—Prior to the next meeting board members should have a recap of what took place during this meeting.

Board meetings can go either way: they can drag and digress or they can engage and enliven. Taking the above 10 steps will help ensure your board meetings are far more effective.

How Resolved Are You to Implement Your Strategic Plan?

A few years ago in a post titled Strategic Resolve Leads to Better Tactics I wrote “Much of what we do in the name of strategic planning is a about as effective as making New Year’s resolutions (in other words nice ideals for a few months but then little change by year-end).” Now that we are almost one month into 2012 (hard to believe), how is your strategic plan looking? Are you still resolved to complete it?

Author David Maister refers to resolve as Strategy and the Fat Smoker. A fat smoker knows he or she should quit smoking, exercise, diet and lose weight. The resolve to do that, however, is not always there. Think about it. If it was that easy, there would be no drug addicts, alcoholics or bad marriages in the world. It’s the same with business strategy. The necessary outcome of strategic planning is not analytical insight. It’s resolve.

Here are four areas you might need resolve with your strategic plan:

(1)    Budget Resolve

How committed are you to completing all the tactical items on your strategic plan? The real answer to that question lies in your budget. If you don’t commit budget dollars to certain projects, then don’t bother putting them on your plan. For example, your credit union may need to rebrand itself. Did you give your marketing department extra dollars to complete this key strategic task? If not, why bother having it in the plan at all? It’s the same with IT issues. Implementing technology initiatives (mobile banking, live web chat, etc.) costs money. Your budget will show your resolve.

(2)    Staff Resolve

Some areas don’t just need more money—they need more staff. Yes, every department at your credit union is overworked (what area couldn’t need more help?). However, when you are focusing on your strategy, you probably know of particular areas that need more people. It may be collections, loans, technology, business development, marketing, or some other area. The trick is knowing when a department has tipped (especially if it is back office when there is no immediate positive impact with members). One great example of staff resolve is social media. One of the two “Ss” of social media is staff. Don’t expect your current staff to magically produce social media without help. Your hiring will show your resolve.

(3)    Time Resolve

It’s great to establish many strategic goals. However, when are you realistically going to have time to do all the action items? When Steve Jobs was running Apple, he was extremely diligent about focusing on no more than three initiatives: he felt people could not adequately focus on more than three big issues. That is the same principle in place with time: odds are you won’t have enough hours in the day to accomplish an entire laundry list of items. You may want to ask, “What Should Your Credit Union Stop Doing?” How you spend your time will show your resolve.

(4)    Culture Resolve

Culture is a hot topic in many planning sessions. Statements like “we need to implement a sales and service culture,” “we need to change our culture,” or “what is our culture,” are uttered in almost every credit union. Those are easy statements to say and many times some form of “culture change” works its way into the strategic plan. But that is when it gets hard. Actually changing the DNA of your credit union probably takes years (truly a long-term process). In the post Changing Your Credit Union’s Culture, Matt Monge offers some great advice on how your credit union can go from talking to acting on your desire to change. How you plan to implement your culture will show your resolve.

Your credit union’s strategic plan may be filled with research. It may have keen insight. It may be a work of genius. But those things don’t matter if your strategic plan doesn’t have the most important thing of all: resolve.

Onboarding Your New Employees

We often talk about onboarding new members: getting them to use more products and services per household during their first three to six months of membership. Every credit union serious about member retention should certainly be using that strategy. But there is another key group we should consider for an onboarding strategy: your new employees.

I’m currently reading Grow, by Jim Stengel. It is an excellent book about how ideals power growth (in other words, “companies with ideals of improving people’s lives at the center of all they do outperform the market by a huge margin”). It’s an excellent book and I’ll write a complete review in the coming weeks.

But one principle from the book is already striking: companies that grow put as much emphasis on their employees as their customers. One tactic they suggest is to onboard your new hires. They cite Method, a household cleaning products company, as an example. “Method’s leaders decided that they needed to put as much energy into onboarding new employees as they did into hiring them…..which starts with a welcome package delivered to their home and continues with a sixty-day personalized plan.”

Your employees will make or break your credit union’s brand. Since your employees must live your brand every day, you want to ensure they have a positive first impression about the credit union. In other words, brand your culture and your credit union to your new hires.

Here are some suggestions about how you can onboard your new employees:

• Take them to lunch the first day—On my first day of work at one of my prior credit unions, someone stole my brown bag lunch from the employee break room. That wasn’t exactly a good first impression (“what had I gotten myself into?”). That first day on the job is stressful; lighten it up with a lunch with the new person.
• Have the CEO informally visit with them within the first week—No matter your credit union’s size, the CEO can be an intimidating position for new people. When the president of an organization takes time from their busy day to talk with a new hire, it sends a strong message: you value them as a person.
• Connect their job with a higher purpose—Some jobs in a credit union can be boring. Be sure to let them know that what they do every day impacts members’ lives. Most people don’t want to just punch a clock: they want to make a difference. Show them how working at your credit union does just that.
• Give them free logo wear or t-shirts—Everyone loves free stuff; especially free shirts or t-shirts. Even if costs you a few bucks, the good will you earn is priceless. Giving them logo wear lets them know they are part of your team.
• Send them a hand written note to their home—We often suggest the hand written note as a tactic to use with new members. It’s also a great tip to implement with new hires. After a month or so, the new employee may need a word of encouragement. Sending them a personal note that comes to their mailbox (not inbox) demonstrates that you care about them.

These are just a few suggestions. We all know employees impact members (positively or negatively). The better your new employees feel about your credit union, the more likely they are to live your brand.

Compensating Executives Is Strategic Issue Credit Unions Must Address

It’s a hard topic for credit unions and certainly a touchy one these days: executive compensation. None the less, executive compensation is a strategic issue many credit unions must address. I had the opportunity to visit with Alec Berkman, president of Executive Compensation Solutions. They recently published their yearly survey on credit union executive compensation and benefits. Below is my Q&A with Berkman.

(1)    ECS recently published an employee and executive compensation & benefits survey for credit unions. What were some of the trends you identified?

It still looks like about 30-40% of credit union CEOs will be retiring in next five to seven years. That is a big number and credit unions and boards must be prepared for that shift. Many of them are Boomers.  Another 20% of credit union executives change positions for perceived greener pastures every year. There is more movement across the country than most people would imagine.  Evidently, there is sustained demand for higher levels of talent.

We’ve also seen a slowing in the growth rate of base compensation. We saw reactionary moves in 2009 and 2010, where some plans and salaries were frozen. Those were tactical rather than strategic decisions. Prior to 2008 we were seeing a seven and eight percent growth in base pay; it has now slowed to about four percent.

For awhile we were seeing a narrowing of the gap between bank and credit union CEO pay. However, bank CEO compensation is accelerating again. So now the gap between banks and credit union is widening.

We are also seeing a shift in credit unions where more CEO compensation is “at risk” or tied to performance. Executives will get paid when they hit credit union goals.

(2)    When it comes to CEO compensation, are there pay differences by gender? Why do you think that is?

This is the first year we looked at the gender issue. There are wider opportunities for women in credit unions than in other industries. There is also significant disparity between male and female credit union CEO compensation. When you look at credit unions under $50 million in assets, over 70% of the leaders are women.  When you look at credit unions over $2 billion in assets, women occupy 30% of those positions. However, the glass ceiling seems to be in place.  Women on average earn between 75% and 80% of what male CEOs make.

(3)    From a compensation standpoint, what are some things credit union boards can do to keep their CEO?

Boards have a primary responsibility to think about executive compensation in ways that align the interests of the executives and the credit union. A credit union board and its executives are well served by setting expectations in advance and benchmarking along the way.

(4)    If a credit union board and its CEO have differences when it comes to compensation, what do you suggest they do?

The best approach is to set mutual expectations in advance. From there, establishing the right communication is critical. Professional advice plus accurate and relevant data is important in making good decisions. Transparency is essential.

(5)    In this day and age with increased scrutiny on executive compensation and the economy, why should credit unions be concerned with rewarding their CEO and executives?

We are still in a competitive marketplace where you want to attract the best and the brightest people. You want to reward them meaningfully, but reasonably. The compensation program also has to be affordable. It has to tie to credit union goals and performance. A good team has a deep bench. Having a talented executive team in place probably leads to more success.  Optics are an important consideration. One way to explain the reasonability of a CEO’s compensation is to look at the ratio of compensation to member. For example, if your CEO’s total compensation is $500,000 and you have 200,000 members you are only spending $2.50 per member or $.20 per member per month. However, having a compensation philosophy and a methodology for establishing CEO compensation is at the core of the issue of fairness and increased scrutiny.

(6)    What are some ways credit unions can reward executives and the CEO?

There are four components of executive compensation: base salary, short term bonuses, long-term incentives (retirement/retention) and perks. Most credit unions overlook the effectiveness of the long-term piece. You need to coordinate all four areas and all four areas should be linked to sustained achievement.

(7)    How can credit unions use the ECS survey?

Good decisions come from good information. Our survey can help guide them through a consulting process that is matched to their decision process. While our survey, which we provide free to anyone who wants it, is a great tool, you have to remember the analogy of building a house. You don’t build a house with just one tool: you use multiple tools. Credit unions should also use additional data from Callahan, the ABA survey, CUNA survey and CUES survey. Usually, a pattern of competitive compensation information will emerge.

(8)    How does ECS help credit unions with their services?

We have constant engagement with our clients. While the decision process belongs to the client, we can help the credit union develop or revise their compensation philosophy and evaluation methodology. We look at peer groups, regionalization, other industries and succession plans for credit unions.

(9)    What business books should every credit union professional read?

The Ultimate Question, by Frank Reichheld; Answering the Ultimate Question, by Richard Owen; Funky Business by Kjell Nordstrom, Merge, by William McDonald; Think Big, Act Small, by Jason Jennings and The Fifth Discipline by Peter Senge.  In my opinion The Fifth Discipline is the best business book ever written; it’s about how to build personal mastery and a growth focused culture.

Executive Compensation Solutions (ECS) is a client-focused consulting firm that brings innovative thinking to compensation and benefits issues with an exclusive focus on the credit union movement.  Their staff has a broad depth and range of experience that provides a comprehensive approach to the credit union challenge of attracting, retaining and rewarding key value creators while aligning the goals of the credit union and itsexecutives and its membership.  For more information, you can visit their website or download a copy of their Credit Union Executive Compensation Survey.

Real and Authentic Leadership Drives Success

“The supreme quality for leadership is unquestionably integrity. Without it, no real success is possible,
 no matter whether it is on a section gang, a football field, in an army, or in an office.”
- President Dwight D. Eisenhower

John Maxwell once said, “Everything rises and falls on leadership.” As your credit union embarks on 2012 that means your credit union will rise and fall this year on leadership. While loans, marketing, operations, assets, etc. are important, your credit union’s ultimate success is based on one word: leadership. That means leadership at the board, executive and management level. But what is key when it comes to leading your credit union? True leadership is real and authentic.

If you ever want to feel overwhelmed by a sheer mass and quantity of books in a single genre, check out the leadership section of your local bookstore. It’s almost hard to not find a “leadership skills” book by anyone, be they obscure celebrity, aging sports star or retired politician. Well-known leadership authorities like John C. Maxwell, Stephen R. Covey and Dale Carnegie share shelf space with an ever-expanding pack of authors anxious to crack the top ten.

Whether leading an entire credit union as CEO, heading multiple departments as an SVP/EVP, leading a single area as a VP or managing a department or branch, anyone in a position of leadership may scratch their head and wonder aloud “just what makes real and authentic leadership?”

Last year, Heart of Louisiana Federal Credit Union addressed leadership as a major strategic initiative. As part of their overall training program, I conducted a leadership workshop with all of the credit union’s executives and managers. We then conducted routine follow-up sessions throughout the year to address specific leadership skills.

“We saw tremendous strides in our leader’s skills in 2011,” said Cindy Beauregard, Heart of Louisiana FCU’s CEO. Because leadership is an ongoing process, we are working once again in 2012 to continue leadership development at Heart of Louisiana FCU. “As our leaders grow, our credit union grows,” Beauregard added.

While fifty different people will typically have fifty different answers about what makes a good leader, we can point to several broad ideas that encapsulate the idea. As your credit union moves into 2012 and beyond, members and employees will look to senior staff and board members to possess these traits in good measure.

• Possessing Integrity and Character
• Creative and Passionate
• Inspirational
• Humble
• Committed to Excellence

Perhaps most importantly, an effective leader must serve as living, breathing example of the ideals he espouses. German philosopher Albert Schweitzer put it this way: “Example is not the main thing in influencing others. It is the only thing.”

A real and authentic leader can be a president, a pope, or a prime minister. Just as crucial and in equal demand are leaders from the ranks of parents, teachers, clergy and others. While we may never be able to fully agree on every trait an individual must possess, and in what measure, to earn the title “leader,” it is obvious that, in order to remain viable and thriving, the credit union movement must continue to attract and retain such qualified men and women

Four Risks Your Credit Union Should Take

“A ship in the harbor is safe…but that is not what ships are for.”

Credit unions are inherently conservative. That’s a good thing. Until it becomes a bad thing. Sometimes an overly conservative nature can lead to taking no risks at all. As John Maxwell wrote, “The moment you decide not to take a risk is when your competitors will pass you by.”

There are certain risks credit unions should take. While we often associate taking risks with our loan portfolios, there are other areas just as critical that need a risk assessment. Below are four areas credit unions should consider taking more risks:

(1)    Take risks with unique groups

Every credit union wants the perfect member, the perfect community, or the perfect select employee group. Get over it—they don’t exist. However, there are many people, areas and companies with warts on them. Real people who need real financial help. Those are some of your best target audiences. Serving the underserved has risks. Serving Hispanics has risks. Serving the unbanked has risks. If you are looking for the ideal niche group then you may be looking for awhile. Instead, you might want to take risks with a unique group and serve them.

(2)    Take risks with marketing

Is your marketing boring? Remember, no one talks about a boring company. Maybe your credit union should stop using traditional media (yellow page ads, newspapers, billboards, direct mail, etc.) and instead do more with emerging marketing technologies (video, QR codes, mobile marketing, search engine optimization, pay per click, social media, etc.). While there is “no school like the old school” a part of your marketing strategy this year should include a tactic you’ve never used at your credit union.

(3)    Take risks with employees

One of your credit union’s greatest assets is its employees.  Yet as Stephen Covey once said, “People are called an expense and things are called assets.” Never forget that your employees are your brand—they live it (or break it) every day. Focus on your employees’ potential, not their shortcomings. Maybe it’s time you give that “up and comer” the chance he or she deserves. Be sure you are empowering your employees to accomplish something great and try not to stifle their creativity.

(4)    Take risks with young people

Generation Y is different and unique. They will not wait on a credit union that is moving at a snail’s pace. Sometimes credit union executives feel these youngsters must “earn their dues” and that they “want to change everything.” Just because a credit union employee is young doesn’t mean they don’t have tons of wonderful ideas to offer. Don’t rule them out because of their age—instead take a risk with them.

Will taking these risks lead to failure and mistakes? They could—but they could also lead to great success. And NOT taking these steps will lead to complacency and stagnation (an even worse result).

10 Tactics To Consider When Implementing Technology Solutions

Technology is everywhere these days. And it’s certainly in the marketing field and credit union industry. In fact, many credit unions will embark upon multiple technology solutions in 2012. Whether it is instant online account opening, external account to account transfer, remote deposit capture, search engine optimization, live chat support, text alerts or some other new innovation, technology is sure to dominate the strategic initiatives. However, credit unions can’t just say “let’s have more technology.” Below are ten tactics to consider when it comes to implementing these new technology solutions.

(1)    The new technology must make good business sense. 

There must be a market for the technology products and services to be profitable. Technology is not a solution—it is a business enabler. One of the first steps you must do is calculate a return on investment (a sort of techno-forecast).

(2)    Look outside the financial and credit union industries.

There are times we must take off our credit union blinders. The most advanced credit unions actually study other industries. For example, look at how REI reaches its customers/members. REI is a retailer, a cooperative and you are a member of REI. Sound like any financial institution you know?

(3)    Put yourself in the members’ shoes.

How would your members utilize and want the technology solution you are considering offering? The driving force behind any new technology should be your members.

(4)    Stroke the fan base and build a community.

Find your most passionate members and find out how they want to use technology. Consider how Intuit is using social media to reach small businesses. They created a site called JumpUP.com. The site was originally meant to provide tools and advice for budding business owners. But after hearing from users who wanted to get information from fellow entrepreneurs, Intuit quickly added social-networking functions. “We’ve made a really conscious decision to not make this a sales site for our products,” says Intuit vice president Lisa Gevelber.

(5)    Involve a team.

You cannot do the technology function on your own. Neighborhood Credit Union actually created an E-Tech team to work on technology implementation projects. It was comprised of staff from IT, marketing, operations and lending.

(6)    Look for partners.

Most any major technology project (SEO, live chat support, online account opening, etc.), will involve a third party vendor. Be sure you do your due diligence in researching their business before partnering with them.

(7)    Ditch the hype and pitch the value.

With any new technology, the key is information, information, information. The younger generation (the target market for many technology offering) is extremely hip to what marketers are trying to do. They shun anything that they perceive as overt marketing tactics. The best marketing practices in the future will be those that communicate what is real and authentic about your brand. Content is the driver.

(8)    Target influencers.

How many fans do you have on Facebook and how many followers do you have on Twitter? In all honesty—who cares? You are not necessarily targeting the masses with the new types of technology. You are targeting people who will carry a great deal of influence with others. “Audiences” are the targets of traditional marketing (they experience it passively). An influencer is someone who will use the technology and tell others about it. Those are the people you want to reach.

(9)          Even though it is technology, use heart.

 Don’t forget the importance of connecting with your audience emotionally. Craft clever and creative messages and deliver them through clever media. One way to do that successfully is to tell stories about how your members are using the new technology. Member quotes and testimonials are extremely powerful.

(10)        Give yourself plenty of lead time.

While technology is moving at an incredibly rapid pace, the implementation sometimes takes a while. Many new technologies are not overnight projects. You probably want to double the initial timeline given (okay, that’s a bit drastic, but you get the point: technology always takes longer than originally projected).

Those are just a few quick tips when it comes to implementing technology. What other suggestions do you have?

McKinsey Report Offers Insights

McKinsey and Company, a global management consulting firm, recently published a report that offers a great deal of research information. In case you missed it, “The State of Global Banking—In Search of a Sustainable Model,” offers some keen insights. The report is part of their yearly review on the banking industry and explores the state of banking, banking’s future terrain and shaping a sustainable model. While its focus is on larger banks, there are many applicable points for credit unions.

The report soberly noted, “A number of forward-looking indicators highlight limited confidence in the long-term health of the industry. If banks in developed regions are to secure a sustainable future, they will need to transform their business models in ways more radical than many have contemplated to date.”

Here are some of the report’s highlights (followed by some application points credit unions should consider). Remember, this is what McKinsey says is important:

• Increased regulatory requirements will require shrinking balance sheets, cutting costs and increasing revenues.
• Consumer behavior is changing, including a shift from borrowing to saving and an inexorable migration to online channels.
• Financial institution growth will come from capturing business from the competition and from deepening relationships with existing customers (or members in credit unions’ case).
• Financial institutions will have to enact smarter pricing strategies.

So what does all this data mean for credit unions? Here are some things we should consider:

(1)    Your 2012 strategic plan should balance cost cutting with new revenue streams

What specific products will you offer in 2012 that will generate additional income to your credit union? Is it member investment services, credit cards, or a new product from the Filene Research Institute? Your cost cutting initiatives must be careful not to cut the areas (marketing, H.R.) that are bringing your credit union additional income.

(2)    Loans will not just walk in the door—you must fight for the business

As the McKinsey Report noted, consumers are not borrowing at the levels they once were. While that might be good for their personal balance sheets, it puts a great strain on credit union loan income. The vast majority of your credit union’s promotions next year should concentrate on lending.

(3)    Go mobile in 2012 or go home

Next year (2012) is the likely tipping point for mobile banking (if it hasn’t already tipped). McKinsey noted that financial institutions “will have to monitor innovations closely, particularly in the mobile arena, to avoid being leapfrogged by other industries.” In other words, technology is going to change the payment systems industry just like technology changed the music industry.

(4)    Leverage your existing membership base

As Constance Anderson once said, “Your members are cheating with Charles Schwab, they are riding the wagon with Wells Fargo and they are cavorting with Citibank.” You need to capture what is in your own backyard first. Now is an ideal time to leverage the great services your credit union is providing.

(5)    Review the pricing on all your products

Maybe now we know why Bank of America started charging $5 for using their debit card—they had to change the pricing model. While credit unions should never implement those types of fees, we must review our overall pricing strategy. Is there room to pick up additional income? Credit unions can’t win by competing on price but they must look for ways in increase revenues.

Those are just a few brief highlights. The 52 page report offers much to think about for credit unions.

What Should Your Credit Union Stop Doing?

 

In a recent post, I blogged about “10 Questions to Ask at Your Strategic Planning Session.” The always thought provoking Ron Shevlin added a question that was incredibly insightful. He said, “Here’s the question I would add to your list: what are we doing now that we need to STOP doing? (i.e., is there a project or initiative than should be killed?)?”

That question stopped me in my tracks and made me think. Many strategic planning sessions are all about what we’re going to do in the coming months and years. That’s a necessity, but the reality is that approach can just lead to giant “To Do” list. One project gets stacked on top of another. As those lists build up, then the credit union ends up with one thing piled on top of another. Sometimes the management team can feel like a gerbil running in one of those circular wheels.

Maybe Ron is on to something and perhaps there are indeed things your credit union should stop doing. So here are some thoughts to drill down on that discussion at your credit union:

• What products are your members not using—Lack of product adoption may not be a lack of marketing issue. It may be that your members simply don’t want or need them. If there are certain products your members are not using but you are spending an inordinate amount of time training, marketing, etc. then the product may not be producing a strong ROI.
• Where have you created confusion for your staff—If your staff doesn’t understand a particular project, direction, or product then why are you doing it? You may not need to kill it entirely, but you may need to spend more time with your staff.
• What product line has too many choices—How many checking accounts or CD types do you have? At one point in my previous credit union (Neighborhood Credit Union) we had seven or eight checking accounts. Our CEO, Chet Kimmell, realized that was way too many. So with his leadership we reduced them. In buying situations, having too many choices sometimes leads to no choice. Keep your products simple.
• Where is your management team overloaded—Everyone is overworked; this is especially true with many credit union management teams. While we may calculate the budget costs of a particular project, have we also calculated the human costs? Some of your initiatives and projects take a great deal of time. So either kill the project or kill the ten other responsibilities you are asking your people to complete.
• What products are outdated—Some credit union products are just too old. But instead of retiring a product we just keep it around. Maybe it’s time to put some of your products out to pasture. Try innovating instead of retreading.

The truth is there are probably a number of things your credit union should stop doing. This is a tough question to ask but the answers could greatly improve your credit union’s overall effectiveness and efficiency.