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.

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!”

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?

Conference Starts April 29, Register Now at http://www.co-opthink.org

The THINK Conferences have been called in an industry trade magazine “the best credit union – yet not credit union – conference.” The description is apt as the annual conference sponsored by CO-OP Financial Services specializes in bringing in world-class thought-leaders from widely divergent fields to provide insights and fresh approaches to issues facing the credit union movement.

THINK 13 offers perhaps the strongest line-up since the conference began in 2008, taking as its theme “Disrupt Business as Usual.” This conference is devoted to helping credit unions manage change – to disrupt before they are disrupted.

A message of truly transformational change will be advanced at the conference by Cory Booker, Mayor of Newark, N.J. a national advocate of urban revitalization, and a prospective U.S. Senate candidate in 2014.

First elected in July 2006, Mayor Booker has marshaled resources and empowered people in creative ways to uplift his city. Together with the city’s residents, Mayor Booker and his administration have made meaningful strides towards tackling significant governance challenges with innovation, new coalitions, creative public private partnerships and building on the already existing foundation in New Jersey’s largest city.

Mayor Booker’s speech is also aptly titled, “How to Change the World With Your Bare Hands.” Yet he is just one in a four-day roster of great speakers, which you can learn about at www.co-opthink.org.

Put the event on your calendar and register for $679 immediately at the same site. THINK 13 is being held Mon., April 29-Thurs., May 2, 2013 at the Swissotel in downtown Chicago.

Bill Prichard is Manager, Public Relations and Corporate Communications for CO-OP Financial Services, Rancho Cucamonga, Calif. He can be reached at (800) 782-9042, ext. 3450, or bill.prichard@co-opfs.org.

 I know what you may be thinking after reading that title.  We don’t need deposits right now, we need loans!”

I get it. I agree with that sentiment.  Credit unions need loans – no doubt about it!  Credit unions need members to open and use VISA or MASTERCARD lines.  I get it.  Credit unions need members to refinance their mortgages or come to them for their first mortgage.  I get it.  Credit unions need loans.

Concentrating on putting more loans on the books makes perfect sense.  But allow me to give you 3 reasons to leverage the member’s checking account to reach your loan goals.

The checking account is the connector.  Many consumers have set up automatic payments for their various debts.  An overwhelming majority of those people use their checking account for those payments.  A great many consumers are more comfortable if their financial accounts are in one place.  So, if their checking account is at a bank, chances are that they are going to go to the bank first when they need a loan.  Based on the aforementioned logic, why wouldn’t they?  But if the credit union makes an effort to acquire the member’s checking account from that bank and therefore brings everything “in house,” the logical conclusion would be that the member would now go to the credit union first when they need a loan.  Then you can wow them with your lower loan rates and convenient terms and payment options (which would now include automatic debits from the member’s credit union checking account.)

Despite some opinions, it is NOT that difficult to get a member to move their checking accounts to the credit union.  We’ve heard the excuses for not encouraging members to transfer their checking accounts.  The process takes too much time and effort.  All of their payments are set up and they won’t want to change all of that.  The credit union doesn’t offer interest bearing accounts. Etc.  All of those excuses are garbage.  These particular objections can easily be turned into opportunities if your employees are properly trained on how to recognize them as such.  Indeed, there now exists a fantastic opportunity to showcase your credit union’s OUTSTANDING service!  How?  The credit union should offer to do all of the grunt work for the member.  The credit union should offer to pay the fee that may be assessed by the bank from which the account is transferred.  Offer those things and you will certainly bolster your argument  that the member should move their accounts to the credit union.

Once the checking account is at the credit union, most if not all of the member’s other accounts (including loans) will roll in.  Going back to the first point above, if consumers like everything to be in one place, then the checking account will serve as the catalyst to get the member thinking about just moving everything.  Remember the old adage: where the checking is, so goes everything else.  It’s true!  Many credit unions have implemented cross-selling programs.  That is awesome!  As someone who has assisted many credit unions in this regard, I know from experience and am confident enough to assure you that cross-selling gets easier and is more successful with members whose checking accounts are at the credit union.

So don’t ignore the leverage, benefit, and importance of the checking account.  If you do, you’re missing a golden opportunity.

Your Full Potential, LLC is almost ready to make a big announcement so please stay tuned……

While this is good news, I would like to see more credit unions try to capture the members’ checking account as part of their cross-selling efforts.  Some credit unions have very low share draft (that’s the checking account for you non-credit union folks!) penetrations – 12%, 18%, 25%, etc.  Anyone who has experience in retail banking, credit unions, investments, etc. knows that the PRIMARY account for most people is the checking account.  There is substantial evidence and industry agreement on the old belief that a person’s primary financial institution is defined as the one that holds the checking account.  Think about it – credit card payments, loan payments, money for living expenses, mortgage payments, insurance, etc. – most of that money comes from a person’s checking account.

So why are some credit unions ignoring the importance of the checking account?  At a time when many banks are now charging their customers fees to even open or maintain a checking account with them or are implementing outrageous minimum balances, why aren’t more credit unions designing promotions around the all-important checking account?

When I ask this question of my credit union clients, here are a couple of answers that I hear most (and my usual response to them.)

Members think it’s too much of a hassle to switch.  The credit union should do everything for the member.  Stop requiring the member to print out forms, letters, etc. from Switch Kits.  The credit union should do all of the paperwork for the member.

We don’t pay interest on our checking accounts so the members are not interested.  The banks usually don’t pay interest either – unless of course, the balance is very very very high. 

The bank will charge the member for closing the account. The credit union should offer to pay the fee for the member.  THAT will go a long way in building trust and rapport.  

The member has payments and debits set up through online banking and would have to change everything to the new account at the credit union.  Again, offer to do all of that clerical work for the member.  It will be pretty easy to do it with the member at your desk since along with opening the new checking account, you will be enlisting them in your online banking and bill pay suites automatically.  Take care of everything at one time.  Do NOT tell the member to “come back” once they have completed everything on their own. 

Credit unions have an awful lot to gain by acquiring a member’s checking account relationship.  Get those checking penetration numbers up and so much more will follow.

More to come on this topic……

Yes, there is a pretty major announcement coming from us here at Your Full Potential, LLC…..

I have had the opportunity to attend a couple of pre-season games and, truth be told, I enjoy these games better than regular season games.  There are a few reasons for this: more affordable ticket prices, free parking, the crowds aren’t as big, there are fewer obnoxious and drunken fans, etc.  The stadiums aren’t tagged with corporate logos, don’t have luxury sky boxes, and you can actually sit behind home plate for way less than $300.  A typical spring training facility will seat anywhere from 5,000 – 10,000 people, a more intimate setting so fans feel “closer” to the action. I am a lifelong New York Yankees fan.  As much as I would love to take my family to a regular season game at Yankee Stadium, I have a hard time swallowing the fact that I know that before I leave the house, such a sojourn will have already cost me $400 or so.  There are no more $40 seats to be had.  Then add the tolls to get to the stadium, the parking fees, the extraordinarily overpriced food and beverage costs…..you get the picture.

So how does all of this tie into credit unions?  Credit unions remind me of the spring training model in baseball. For one, credit unions are not controlled by corporations.  We are smaller and friendlier than our big banking competitors.  We don’t nickel and dime our members.  We don’t cower in the face of large corporate stockholders and big business.  We want to have more intimate and beneficial relationships with our members.

Spring training season also has its share of pressures.  Players need to earn their spots on the major league roster and their performances in pre-season often determine who will fill those slots.  In short – the players have to prove that they are good enough and worthy of playing in the big leagues. In a similar manner, credit unions must work harder than ever to prove their worthiness and relevance. We still have to aggressively market our services, appeal to potential members, nurture relationships with current members, provide solutions that the marketplace is demanding, keep up with technology, train  employees, and realize that the business model for credit unions has changed.  Credit unions cannot operate in the same manner as they may have 20, 30, or 40 years ago.

Credit unions should be looking for top-notch employees – people with a passion for excellence.  They need leaders and directors who aren’t afraid to “push the envelope.”  They need management that is not satisfied by the status quo.  Many credit unions are setting the pace for the industry by changing mindset by doing things differently as well as by creating messages that resonate and appeal to a new and younger generation of members.

I love it when I hear the two words that the umpire shouts to signal the start of the game.  You know the ones…..

Credit unions need to “PLAY BALL!”

Credit unions have an awareness problem.  Too many people still don’t know who we are.  And then there are others who may know who we are but fail to see the value in doing business with a credit union.  They are hesitant to do business with your credit union because they have never heard of you or may have received bad information about credit unions.  Does this sound familiar? – “They only have savings accounts.”

Credit unions have to work harder to establish trust and build credibility.  Here are 3 ways to do so:

Be crystal clear on your value proposition.  Lofty talk won’t get you very far.  Consumers need to understand the value of a service before they will use that service.  It’s the same with your credit union.  If all you say is “we have better rates,” all you will get are the “rate-shoppers.”  You won’t get the kind of members you need and want, i.e., the members who are willing to build a relationship with your credit union.  Believe it or not, consumers really do need the details.  They need specifics.  They need clarity.  Give them what they need.

Have a thorough understanding of your service areas and target markets.  Think about this – if you are a student in a classroom, you want the teachers/professors to have a thorough understanding of the subject matter, right?  You want them to have certain skills, abilities, and credentials.  Most of all, you want them to relate to you in some way.  Consumers need to believe that their financial institution understands what they are experiencing, understands their surroundings and circumstances, can relate to their struggles and share their successes.  If your credit union has not done research studies related to demographics, consumer behavior, household financials, and employment on its service area, target market, or community – it will be more difficult to relate to the consumers in those markets.  If you want to get through to local community leaders and centers of influence, then you better have a very good understanding of the community.  If you have data, you will sound more credible and you will show that your desire to improve the community is genuine.

Position your credit union as a “solutions-provider.”  Consumers with problems are looking for one thing: someone or something to solve their problems by providing a viable solution.  Through your credit union’s marketing and business development efforts, you have a fantastic opportunity to provide solutions.  Sadly, too many organizations don’t take advantage of that opportunity or craft a “solution-provider” message.  If your credit union is not growing, you may need to make changes to your brand, message, and marketing focus.  There are a lot of people looking for solutions right now.  If your brand reflects that your credit union can provide those solutions, people will take notice.  If all you do is talk about your products, your message will get lost in the shuffle.  A good litmus test – before hanging up another poster, sending out a press release, designing a campaign, discussing goals, writing a newsletter, updating your website, etc., etc. – make sure all of that revolves around the fact that “We have a solution to your problem!”

I was speaking with one of the participants from the Credit Union Business Development Academy yesterday when this topic came up.  I started thinking that credit unions may want to consider building marketing/awareness/membership campaigns around that very question – “Why Wouldn’t You?”

Credit unions need to create more awareness – there are simply too many people that have no idea what a credit union is.

Credit unions need to build momentum in the communities and companies they serve – wouldn’t it be great if the credit union was recognized throughout your community or to get more than 10 or 15 percent penetration at SEG groups?

Credit unions need more loans – anyone who still doesn’t recognize why this is important just hasn’t been paying attention.

So let’s be straight with our members and potential members.  Let’s be blunt and to the point and ask them this very simple question: “Why Wouldn’t You…..?” Here are some questions to start conversations or to put on marketing materials:

Why Wouldn’t You….want to have a loan with lower interest rates than you could get anyplace else?

Why Wouldn’t You….want a credit card with an interest rate that is half of what you are paying now?

Why Wouldn’t You….want to consolidate your various debts, make one payment, and save thousands of dollars in interest charges?

Why Wouldn’t You….want to save money with an institution that will pay you much higher dividends than you would receive anyplace else?

Why Wouldn’t You….want to own a part of a multi-million dollar organization and have a say in what transpires there?

Why Wouldn’t You….do business with an organization that supports your community and helps to make it a better place to live and work?

Why Wouldn’t You….become a partner with financial institution that has your best interests in mind?

Seriously, Why Wouldn’t You?

Credit unions are looking for ways to attract more business.  Maybe instead of just telling people how great your credit union is, ask them some direct questions and let them convince themselves that they should do business with you.

If nothing else seems to be working, try a more direct approach.  Why Wouldn’t You?

Join the conversation by commenting on this post and take a look at some of our new training programs for 2013!

I have the privilege of meeting credit union professionals from all over the country through my speaking and training programs – opportunities for which I am very grateful.  And although there are a lot of wonderful things happening in our industry, there are still some focus areas that are making some credit unions “tired.”  Here are the 3 that I hear most often along with some questions for you to answer to help create some solutions:

“We’re tired of not meeting our loan goals.”  That is certainly a valid concern.  Have you reviewed those goals to make sure they are realistic for your target market?  Do you even have a target market? (HINT: everyone in your service area is NOT a target market.)  If loan growth is your number one priority, have you removed the “Kid’s Club” banner ad from your homepage rotation and replaced it with one that pertains to your loan products? Is your marketing and advertising centered around lending?  Are you offering workshops that educate people on how to build and maintain excellent credit or stick to a budget?  Do your loan officers have the information and resources they need to reach the goals that have been set? Are they adequately trained? Do your loan officers actively seek to uncover more lending opportunities for the credit union by having discussions with the members?  What does your credit union’s cross-selling program look like?  Does your credit union even have a focus on cross-selling? Do your employees understand precisely why loans are so important to the credit union’s bottom line?

“We’re tired of not meeting our membership goals.”  Does your credit union have an awareness campaign?  Are there enough dollars allocated to your marketing and advertising budgets? Does your credit union really need to spend thousands of dollars on free calendars that don’t result in any more business?  Could you allocate the budget for those towards a kick-ass awareness campaign?  Does your credit union have a business development department?  If so, are the department’s employees trained properly or are they just told that their responsibilities now include business development?  Is your credit union active in the community?  Do your community’s elected political leaders even know who you are?  Have you identified the “centers of influence” in your community? (HINT: These are the people that other people listen to.)  Is your credit union active and involved with local business groups? Do the “key players” in those business organizations know about your credit union because your business development people have courted them and educated them about the credit union?  Are you using the most effective marketing/advertising channels available in your service area? Are you trying new things or are you sticking to what you’ve always done before while watching your membership numbers continue to decline?

“We’re tired of the employee morale problem at our credit union.”  When was the last time you had an “employee appreciation” event?  (HINT: the money for this should not be taken from the marketing budget.)  Are your department managers or team leaders properly trained on how to LEAD rather than to just manage people and processes? Do your employees understand that they are your credit union’s lifeline and are they made to feel appreciated because of that fact? Is your credit union a fun place to work or is it a place where everyone is always “walking on eggshells?” Does your credit union encourage personal initiative or is making decisions on your own “grounds for termination due to insubordination?” Does your credit union’s management team know what inspires, motivates, and energizes the employees?

We’re excited about 2013 here at Your Full Potential, LLC.  We’ll be rolling out some new services and products this year.  Be sure to subscribe to our e-mail list or follow us on Twitter for the latest announcements and information!