A Typewriter? Seriously??

Anyone under age 25 who is reading this may not even know what a typewriter looks like let alone what it does and how it works.  But I digress….

A few weeks ago I walked into a credit union as part of my ongoing research into credit union operations.  The very first thing I noticed was the black typewriter sitting at the desk of the receptionist.  Yes, a typewriter.  No joke.  There it was in all of its antiquated ugliness.  I was immediately disappointed.  I wasn’t disappointed that the credit union was still using a typewriter (after all they actually can be useful when updating documents like titles, etc.)  I get that (even though technology has provided us with tools to use that would make the typewriter completely obsolete.) No, I was disappointed that I saw the typewriter.  Not only did I see it….it was the first thing I noticed.  Now imagine how any young professional might feel if a typewriter was the first thing to be seen as they walked into that credit union.  One word comes to mind – old.  If your credit union still uses a typewriter, that’s fine.  But please hide the damn thing!

As credit unions continue to struggle with attracting and retaining younger members (you know…the ones that they need in order to survive long-term,) I often wonder why it is that these same credit unions insist on hanging onto things that are outdated, obsolete, or just plain silly.

A typewriter is just one example.  Take a look around your offices.  Take a close look.  When was the last time you put in new furniture?  HINT: If you’re still using metal desks, it’s time to refurnish.  Are your walls cracking and discolored due to the tons of scotch tape that you have used to hang flyers and announcements?  Are there piles of manila folders in plain sight? 

All of that screams “old!”  Young people will not want to do business with an organization that looks and feels as if it needs a major makeover.  They are looking for modernity, newness, innovation, and originality. They want an experience more than a transaction.  They want convenience at every turn.  They want to feel like they are a part of something that is fresh and creative.  They don’t want to fill out paperwork and they certainly don’t want to see a lot of clutter.  I remember going to the hardware store for my dad when I was a kid.  I would walk in and tell Jerry what my father needed and he would point me down an aisle to a row of boxes and tell me I could “probably find one in one of those boxes.”  After searching through “those boxes,” sometimes I would find what I was looking for and sometimes I didn’t.  There are many reasons why Jerry’s Hardware (and other such stores) disappear. One of them is that new homeowners (who fall mostly into the Gen X or Gen Y demographics) will not just look through “those boxes.”  That takes time and it’s not convenient.  So they go to Home Depot or Lowe’s where there is order and signs at every aisle to tell them where to find what they need.

Some of you may be wondering why I wrote this post in the first place – after all, there are so many other things that credit unions are concerned about.  That’s true.  But appearances matter to younger generations.  Perception is everything to them. 

 And as they say….you only get one chance to make a first impression. 

The ‘Status Quo” Usually Sucks….

…..after a while. 

Humans are complicated.  Centuries of study and billions upon billions of dollars into scientific research have resulted in some insightful discoveries about how people think, why we act the way we do, and the factors that influence the choices we make. 

One of those countless discoveries (at some point in history) was that someone eventually defined ‘boredom’ as the point at which the ‘status quo’ begins to suck.  Well, it could be that no one has actually ever defined boredom in that way….so let me be the first to do so if that is indeed the case. 

The best companies in the world are usually pretty good at determining when their customers might be bored with them.  And once they’ve recognized this, they act.   The ‘status quo’ has become a liability and that is simply not acceptable.  So they modernize, renovate, develop, invent, innovate, rebuild, restore, and refine.  They find the resources to do this.  They are willing to deal with some pain in the short-term because they know that the long-term benefits of their efforts will pay off.  They do all of this without abandoning the core values that make them great in the first place.  They act because they realize that customer loyalty is a priceless gift and bored customers may give up their allegiance to a specific brand or organization in search of something new and exciting.

Many credit unions might be at the point where they are stalled, stuck, or even bored.   There is nothing new.  There is nothing exciting.  More members are leaving the credit union than joining the credit union.  Employees are in a rut.  Morale is low.  The website hasn’t been changed in years.  Walking into a branch is akin to taking a step into the vast abyss of irrelevance and mediocrity.

Are credit unions willing to accept that eventually the status quo begins to bore their members?  And are you committed to doing something about it?  And do you understand that what is new and exciting today will become the status quo of tomorrow – and that too will suck and you will have to reinvent again?

Ask anyone what they think about the first iPad now.  Chances are there are plenty of people that will say it sucks.

 

 

7 Things That I am REALLY Getting Tired of Hearing…..

No intro to this post – I’m just going to jump right in….

-      “That won’t resonate with our credit union’s members” – how can you possibly know that without trying it first?  I hear this all the time about social media and mobile solutions.  So what if it won’t be used by your current members?  What about the members you NEED to attract and retain (Gen X, Y, Z, Omega, Bridezilla, etc.?)

·         “It’s tough to get our employees “on board” with new ideas” – If a new initiative is supported from the top, give the unflinching employees a clear choice: get “on board” or get out.

·         “Marketing costs too much” – get over it.  You can’t expect vendors to work for free.   If you want your credit union to grow, you need to market your services.  Look to state leagues, associations, CUSO’s, etc. for cost-effective marketing solutions.  They won’t do it for free either but these services are usually less expensive than working with an agency.

·         “Young people don’t know what credit unions are” – so let’s tell them!  Get their attention – hire a skywriter, do a flash mob, grab a bullhorn, partner with a young spokesperson to share the message, advertise on social media, advertise on a blimp….

·         “We need loans” – so steal them…..or in more politically correct terminology: look for opportunities to refinance loans that members have with other financial institutions.  Cross-sell, uncover opportunities, take risks, start conversations, get out of your comfort zones.  Oh and if a loan is “stolen,” REWARD the employee who made it happen.

·         “Our value proposition is that we provide the best service” – not good enough anymore.  Everyone says it.  Come up with something better or your relevance will be a memory.

·         “Credit unions don’t have to pay their employees as much as banks do.” – YES, I have actually heard that (on multiple occasions.)  If you want top talent, you need to pay for it.  Simple as that.  Credit unions are businesses and need to be run as such.  If you want better, more passionate, more creative employees, you’ll have to ante up.  These people will work for credit unions but only if they can make a living doing so.

Why The World Just Got Smaller…..

….for me. 

I just spent two days in Madison, WI working with the World Council of Credit Unions on a project designed to help credit unions attract a younger audience.  What made this event unique from any other panel that I’ve sat on or focus group that I’ve participated in is that the attendees hailed from different parts of the world – the United States, Canada, Brazil, Australia, and South Korea were all represented.

I am used to teaching training workshops and speaking at conferences.  It had been a while since I was on the learning end of things – at least in a workshop setting.  I learn every day but not in a “classroom” setting. But what I learned this week from a group of the most passionate and talented credit union leaders from around the globe will stick with me forever.  So I decided to share these tidbits with all of you, my followers and readers.

The difficulty in attracting younger members is not unique to credit unions in the U.S.A. – when the folks from the other countries presented and spoke about their efforts, the phrase, “we’re all in this together” took on new meaning for me.  Indeed, talking with and listening to these credit union advocates made me realize that while we all seem to struggle a bit with being relevant to younger generations, there is so much we can learn from each other by sharing our struggles, successes, and what we have in common.  Of course, the business and consumer cultures in Canada, Brazil, Australia, and South Korea are vastly different than those of the United States.  But I learned that while legalities, regulation, and the like may be very different, the basic premise and foundation of credit unions remains constant whenever they are located.  Our challenges are the same, our focus points are the same, and our goals are aligned.

I still have a lot to learn – this was apparent from Day 1.  I realized that if I want to expand my reach and increase my knowledge, I have to be willing to step out of my comfort zone and learn as much as I can about the global credit union movement.  And I strongly suggest that all of you do the same! For those of you that are thinking that the credit union movement isn’t relevant to what you’re doing in Georgia, California, or New York – you couldn’t be more wrong!  Related to that – I now have a much better understanding, appreciation, and admiration for the fine work that is being done every day by the World Council of Credit Unions.  The lessons I learned over the past few days have given me a fresh perspective, renewed my commitment, and enhanced my love for credit unions.  If you haven’t thought about it, you should really consider attending the WOCCU’s Annual Conference in Ottawa in July. 

 The world is indeed FLAT – I have recommended Thomas Friedman’s book, “The World Is Flat” before because I believe in its premise that due to the interconnectivity made possible by advances in technology, the world is not nearly as vast as it once seemed.  While I certainly supported this notion (hence the book recommendation) it never became real to me until this week.  Not only do I consider myself fortunate to have amazing international credit union partners to learn from, these resources are also now friends of mine.  There was great energy, passion, and willingness to work together as a group to make sure that credit unions stay viable and relevant in the future. 

I hope that the kind of genuine and mutually beneficial partnership that I was privileged to experience in Madison this week becomes more prevalent throughout the worldwide network of credit unions.  

After all, we ARE ALL in this together.

 

 

Strategic Planning Sessions – 4 Focus Areas

Credit unions that conduct their strategic planning sessions in the fall are probably starting to discuss agendas, areas of focus, facilitators, etc. 

The key to a successful planning session is focus – an intense focus on a few key areas.  Like any senior level meeting, the discussions can go off on tangents and wind up on topics that really have nothing to do with strategic planning at all. If you are spending most of your time talking about non-planning topics, you run the risk of missing some golden opportunities.  Now, a good facilitator (ahem….) will know how to gently and respectfully redirect conversations back to where they should be.  Even so, it is vital that those attending your strategic planning session understand that there are a few non-negotiable areas/topics that absolutely must be discussed. 

Here are 4 such topics:

Review your value proposition – Too often, we get caught up in the minutia of day-to-day operations that we forget to keep our focus on the credit union’s value proposition.  It often amazes (and disappoints) me that attendees at strategic planning sessions have absolutely no idea how to define their credit union’s value proposition.  Yet, at the same time, they are perfectly willing to set strategic goals for the credit union.  How can that be?  First, you need to know who you are…then and only then can you be prepared to set direction.

Add to the attendee list – If you are going to discuss strategy, set goals, and recommend performance metrics, then you better have more than your Directors at the planning session.  It is crucial that your senior management team be involved in these discussions.  They are the ones that are connecting with your members every day.  They can provide you with valuable insight as to the pulse of your members, what they want, and should be able to provide suggestions on how to deliver on your value proposition. 

Don’t get too bogged down with tactical details – This may sound strange but discussing specifics about marketing promotions, new product details, etc. should not be done at a strategic planning session.  The purpose of a planning session is to set strategy, direction, and policy.  The Board needs to leave the tactics and action steps up to the management of the credit union.  Why then did I just insist that senior management be invited to the planning session?  Easy answer – because they will be able to provide advice regarding whether or not the strategies that are being discussed are feasible.  Also, because if they are present when the strategies are decided upon, they will hopefully get a jump-start on the tactical side of things.  Remember, Southwest Airlines started with a drawing on the back of a cocktail napkin.  The most important business decisions and discussions usually occur “offline.”

 It’s all about direction – At the end of a successful strategic planning session, you should walk away with a clear picture regarding the direction in which to lead the credit union.  You should have discussed your target audience, your credit union’s capabilities, your infrastructure, your ability and readiness to provide your members with the best possible products and services, and a high-level blueprint that management can use to create realistic action plans and performance metrics. 

Make the most of your strategic planning sessions this year by asking tough questions, solidifying the direction of your credit union, and making a commitment to meet the challenges of today while keeping your eyes on the opportunities for the future.

 

 

“How to Make Your ‘Differentiating Factor’ umm….Different!”

Originally posted on CU Insight  (April 16, 2013)

Do any of these sound familiar?

 We have the best products out there!

Our service can’t be beat!

Our rates are the lowest in our market!

Our products are of the highest quality!

These are just a couple examples of so-called differentiating statements that many companies use. Sales 101 tells us that we have to find a way to “stand out,” “be different,” “find our unique value proposition.”  All of that is true but if a lot of companies are using the themes, wording, or phrasing above, are they really all that different from each other?

Finding the differentiating factor for your credit union isn’t easy.  Credit unions and other financial institutions are competing for market share by offering similar products and services.  So using products or services as your differentiator doesn’t make much sense (unless, of course, you are the first in your market to offer something.  Of course, that little slice of Shangri-La only lasts so long.)  Also, using “service” as your unique differentiator simply isn’t enough anymore.  Have you noticed that everyone says they have the best service?

You know what I’d LOVE to hear credit unions talk about?  Something that would really and truly be different.  I don’t hear too many companies (credit unions or otherwise) talk about the skill, passion, dedication, and expertise of their employees.  (Southwest Airlines and Zappos being two notable exceptions.)  Credit unions should start talking about their team members.  Something like:

Our employees have the best training in the industry.  What they know, you’ll know!

We hold our team to the absolute highest of standards.  You deserve the best!

We take your financial well-being seriously.  That’s why we only hire smart people.

Sure it’s unconventional.  Yes there may be some people who may take offense.  Yes, it will make heads turn.  But isn’t that what you want?  Doesn’t your credit union want its members business partners, and potential members to know that the staff isn’t made up of a bunch of dummies?  Isn’t it important to communicate that your employees are well-trained and highly motivated and held to the strictest of standards? 

People are struggling right now.  They are looking for guidance.  They are looking for trusted partners.  They want to know why you are different than everyone else. 

So tell them…..”Our employees are just better because….well, we require them to be!”

Is Your Credit Union At A Crossroads?

Whenever I think of the term “crossroads,” I think about the final scene in the Tom Hanks’ movie “Cast Away.”  Those of you who have seen the film will remember that after being trapped on an island after a plane crash, Hanks’ character, Chuck Noland is finally rescued and returns to his life in Memphis.  When he arrives, he learns that his fiancée (whom he hasn’t seen in years) has married and has a child.  Noland was declared legally dead after being missing for so long.  Chuck is left at a “crossroads” – 2 intersecting roads (paths) which go in all 4 directions.  The movie ends with Noland standing smack in the middle contemplating his next move.

OK – so this isn’t a movie review but I think that the final scene in “Cast Away” provides a pretty good image (metaphorically speaking) of what I want to write about in this post.

It’s no secret that the credit union industry has benefited from the “hiccups” that big banks are experiencing.  Overall membership is up and last quarter’s industry financials were some of the best ever reported.  When an organization experiences this kind of growth (or stagnation,) it often finds itself at a crossroads.  Credit unions are no different.

Since our industry is ever-evolving, credit unions must continue to improve and create additional value.  Let’s compare this to a personal crossroads that you may have experienced in your life – you may have felt anxious, unsure, apprehensive, excited, nervous, elated, etc. all at the same time!  For many credit unions, there is certainly that crossroads-type of feeling.  Through my discussions with credit union leaders and executives, I find myself suggesting that they start asking some challenging questions.  Too often, management personnel (at all levels) find themselves dealing with minutia and nonsense instead of strategizing, planning, and thinking. Here are some examples of the crossroads questions that I encourage my clients to ask:

Where are we going as an organization? Who do we want to serve? Who are we and are we effectively communicating our brand? Do we need to re-brand ourselves to create more awareness in the communities we serve?  What are we willing to risk?  What are we not willing to give up or change? Do we have the proper infrastructure in place for what we want to achieve? Do we have top-notch talent working at our organization? Can we make tough decisions regarding non-productive employees? What are the things that are holding us back? Are we committed to fixing what is broken and improving upon what is not?  Are we fully committed to the steps that we have decided to take?

Being at a crossroads can seem overwhelming and rightly so.  But one of the truest measures of personal, organizational, or professional success is this: when you find yourselves at a crossroads, will you have the fortitude to ask tough questions….and will you have the courage to answer them?