And Ben Franklin, because of his attributes, work ethic, and determination would have also made one hell of a credit union CEO!  And all credit union professionals should endeavor to exhibit the same characteristics as those that make Franklin held in such high esteem.  Let’s break it down.

Statesman – Franklin was a masterful politician – he knew how to get people on his side and how to attract them to hid ideas.  Credit union professionals have to know how to be diplomatic and respectful in their dealings with their members.  Their aim must be to provide outstanding service but they must also have the ability to work with members who fall under the “difficult” category.  Not an easy task but it still must be done!

Inventor – Franklin invented many things that we still use today.  Credit union professionals need to continuously “invent” attractive products & services.  They need to keep up with the technological advances of the day and always have the best interests of the members in mind.  Credit unions must also have the courage to discard processes that are outdated or irrelevant and replace them with ones that lead to more growth.

Philanthropist – Ben Franklin was a tremendously wealthy man.  He was also known for his charitable work and for his focus on improving the lives of those around him. He once said, “He that is of the opinion money will do everything may well be suspected of doing everything for money.” Credit unions exist to help others, plain and simple.  Credit union professionals change lives.  Credit unions support their communities and perform works of charity.  And people notice.

Entrepreneur – Franklin was a self-starter.  He didn’t wait for opportunities to fall into his lap.  He created opportunities for himself.  Credit union professionals have to strive to do the same thing, i.e., realize that life is not akin to the movie, “Field of Dreams.”  Just because it’s built, doesn’t mean anyone will come.  Every successful businessperson will testify that among the skills needed to achieve great levels of achievement is the ability to recognize opportunities and TAKE ACTION that will benefit everyone involved.  CU professionals can’t be afraid to take calculated risks and look for opportunities.

Author – Ben Franklin was an educator and teacher.  He shared his insights with anyone who would listen (and in some cases, with people who didn’t want to listen but who needed to hear anyway!)   Credit unions must stress the importance of financial literacy and must become teachers to those who look to them for guidance.  A great teacher is one that lends a guiding hand, wisdom, and just the right amount of discipline.  Credit union professionals need to do the same.

I don’t know about you but if I was looking to hire a person to work at my credit union, I would want them to possess these qualities.  Too bad Franklin himself isn’t available.

I recently read the “Insights into 2012” white paper that was published by Abound Resources.  The study deals with the insights and priorities of senior management at credit unions across the nation.  This is not a review of that paper; however, I wanted to take the opportunity to give my viewpoint on one aspect of the study.

I was pleased to see that 57% of CEO’s said that improving sales and marketing will be a top priority for them in 2012.   FINALLY!  As some of you may know, I have been a steadfast advocate for credit union sales, marketing, and business development for a while now.  Put simply – a credit union cannot and will not grow if there is no investment in its sales and marketing platforms.  Think about it – how can you expect to grow if you are not marketing your services to your members and potential members?  But there is a dangerous trend in our industry.  Namely, when budgets get tight, one of the first areas to be affected is marketing.  In most credit unions, marketing is usually one of the budget line items that has the highest numbers.  So, it’s easiest to just slash that number.

But as many credit union CEO’s are finding out (based on the survey result mentioned above) blindly cutting the marketing budget without taking into account the consequences that surely follow is not only dangerous but it’s also unwise.

A related area of major concern (that the white paper also points out) is the anti-sales culture that still exists in many credit unions.  There are still way too many credit unions and credit union employees that do not seem at all interested in selling anything in any way.  There are some credit unions that have implemented cross-selling programs but in order to get their employees onboard, they have had to come up with clever nicknames for their programs that do not include the word “sales” or any of its derivatives in any way.  I can imagine countless hours being spent in management meetings coming up with these clever names.  Imagine if those precious hours were spent on training and development instead of a silly endeavor to avoid calling the sales process what it is.

Perhaps the tide is changing.  Perhaps credit union senior management is warming up to the fact that selling and marketing are both critical components of a credit union’s strategic plan.  Perhaps they are realizing that buying expensive technology (mobile banking, MCIF, etc.) will not produce the desired results if the credit union’s employees are not properly trained, compensated, and motivated to sell and market those services. Perhaps they are beginning to see that cross-selling and aggressive marketing do not have to be intrusive or pushy in order to be effective.

I hope this renewed interest on the part of credit union senior management continues.  I hope that folks understand that marketing campaigns do not necessarily have to be expensive to be effective.  Finally, I am optimistic that small to mid-size credit unions understand that collaborative marketing does not have to be competitive.

Business development used to be synonymous with SEG Development.  But with more credit unions switching to community charters, the business development function had to evolve as well.  My passion is business development.  It’s how I started in credit unions and continues to be a big focus for me.  Unfortunately though, I still hear folks say that community-chartered credit unions don’t need business development because SEGs aren’t their primary focus. WRONG!

Why is it wrong?  Because the same principles apply to both successful SEG Development and community outreach.  Here are some of those principles:

Building strong and beneficial relationships.  In SEG Development, it is important to have great relationships with the decision-makers and influencers at the company.  They won’t let you in if they don’t trust and like you.  Credit unions need to apply the same attention and desire to build strong relationships with “centers of influence” in their communities to achieve success.  Find out who the” movers and shakers” are within the community.  If they love you, they will tell others about you.  And people listen to the movers and shakers.

Showing support for what is important to them. For SEG Development, this may be participating in the company’s benefit fair or supporting a charity that is connected to the company.  In the community, this could entail taking part in various events that are sponsored by a city, town, or borough.  I know of credit unions that have a big presence in 4^th of July celebrations, town clean-up efforts, and holiday parades.  If your credit union is consistent in this regard, people will start to notice.  Keep in mind, however, that consistency is the key here.  Don’t expect the floodgates to open if you attend just one event.

Adding VALUE.  SEGs should be able to clearly define the value that your credit union provides.  That value proposition must go beyond low loan rates and high CD rates.  Consumers expect much more.  In a similar fashion, it takes considerable time and effort to demonstrate the value that a credit union can offer to the community it serves.  In some ways, community value propositions are more difficult to craft since the target audience is more diverse than that of a single company.  With SEGs, the company has hopefully already created the culture and ethic that resulted in success.  While developing strong value propositions differ for SEG development and community development, the fact remains that, no matter who credit unions serve, they must demonstrate value.

Develop business. Develop people.  That’s the way forward!

Finally, congratulations to my friend, James Robert Lay of PTP New Media who was named a “Trailblazer” by Credit Union Times.

Almost every credit union that I’ve spoken with recently has told me that while many aspects of their business have continued to improve over the past year or so, one area of struggle continues to be lending.  As you know, lending is critical to credit union asset growth and sustainability.

An article in yesterday’s Wall Street Journal entitled “Pickup in Lending Lifts Big Banks” states that banks are enjoying positive loan growth lately.  The title of the article, while definitely attention-grabbing, may lead the reader to believe that lending was up “across the board.”  However, upon reading the article I noticed that most of it dealt with the uptick that banks are seeing in commercial lending.  Many credit unions, of course, engage in business banking programs which include commercial lending products.  The good news is that if this article portrays an accurate assessment of commercial lending, the credit unions that have business banking platforms should benefit from businesses being more willing to borrow.

But I was left to wonder why the banks are not reporting increased loan numbers for consumer borrowing.   It could be that getting a consumer loan from a large bank is still akin to breaking into Ft. Knox.  It could be that large banks still don’t seem to want to serve the “little guy.”  Or it could be that large banks do not have the desire to engage the average consumer.  Now, before you think that I am talking “out of school” on this matter, remember that I came to credit unions after working for years for the big guys on the banking side.  I still remember my employee number!  That number was really our only means of identification.  But I digress.

So what can credit unions do to attract consumers to their loan offerings?  Well, I’ve said it before and I will continue to say it – credit unions should be atop the highest pedestal they can find and should be shouting as loud as they can that they are willing and able to lend money!  Credit unions cannot be subtle about this!

Letting people know is just one step to improving borrowing numbers.  Here are two others:

1. Talk to other credit unions that are posting great loan numbers.  One of the many advantages of working in the credit union industry is the spirit of collaboration that exists.  I don’t want to sound cliché but seriously, credit unions really are all in this together.  So tap into your fellow credit union advocates to share ideas, best-practices, and strategies.

2. Review your loan policies and practices.  It may be time for your credit union to take a fresh approach.  If you continue to see a decline in loan numbers, it could be that your policies are outdated, your strategies are ineffective, or your employees are no longer motivated because they feel restricted because of those very policies and strategies.

 Finally, take the opportunity to use the comment functionality below this post to start a discussion and get the ideas flowing.

Click here to read the WSJ article that I mentioned earlier.

The renowned sales coach Jeffrey Gitomer says, “customer satisfaction is worthless, customer loyalty is priceless.”  I agree wholeheartedly.  The reason is simple: satisfaction only lasts for a short while but loyalty can last a lifetime.

In order for your credit unions to grow and thrive, you must be able to not only satisfy your members but you have to make the lifelong fans.  Think about this example: I am an avid New York Yankees fan (I can hear the boos and hisses already!)  The Yankees can satisfy me with a big win, hitting a big milestone, etc.  But those moments of satisfaction come and go.  But I will be a lifelong fan of the Yankees because of the culture of excellence that has been instilled in the organization from the top down.  The late Yankees owner George Steinbrenner often said that when a baseball player puts on a Yankees uniform, he is, in effect, agreeing to adhere to the values and ethics of the organization.  These things have helped me (and millions of others) remain Yankees fans when they’re winning and losing.

So how can you create and maintain loyalty at your credit unions?  Here are 3 suggestions to get you started:

Implement a formal Cross-Selling Program - This is so important.  Cross-selling is not a deceptive or intrusive practice (if done properly.)  And credit union employees should not be afraid to cross-sell because doing so helps to build relationships with your members.  It’s all about engaging in dialogue and making your members feel valued.  Think about it – what member is going to say “no” to a credit card balance transfer if you can show them (with raw numbers) that you can save them hundreds or thousands of dollars in interest costs if they switch?

Have an intense focus on OUTSTANDING member service – There is no excuse for bad service – period.  Train employees on how to deliver outstanding service.  If they do it well, reward them.  If they don’t, re-train them.  If they still can’t seem to serve the members properly or don’t seem to care about doing so, well….

Become solution providers instead of product pushers – credit unions exist to provide viable and sound solutions to their members. There’s an old saying about becoming successful in business, “find a need, then fill it.”  That’s what credit unions have to keep doing for members.  Members need their credit unions, now more than ever.  The recent Bank Transfer Day was successful because credit unions across the country recognized that people needed an alternative to fee-hungry banks and they aggressively offered a solution to that particular dilemma.  So position your credit unions as solution providers.  If you do that, the product usage will take care of itself.

Now get to work!  Your members are waiting.

I enjoyed spending some “down-time” over the holidays but now it’s back to business!

I have always said that making New Year’s resolutions is usually a fruitless endeavor.  I believe that the primary reason for this is because when people make resolutions, they do not have an action plan to help keep them on track.  Simply put, setting resolutions or goals without a plan amounts to nothing more than wishing.

The same goes for credit unions.  It’s sad to say but it is my guess that countless hours of valuable time are wasted in meeting rooms because managers get together to talk. And all they do is talk.  They do not plan.  They do not leave the room with action steps to be implemented to help them achieve the goals that they just spent so much time talking about.

I’ve never been a big fan of meetings.  Let me clarify that – I don’t like having meetings or attending meetings just to “meet.”  I also don’t like meetings that do not have an agenda, a start time, and an end time.  Think about it – have you ever walked out of a meeting thinking, “what was the point of that?”  I bet you’re nodding right now.  That’s good.  Some organizations have decided that they “must” have a staff meeting or management meeting every week on a certain day at a certain time.  That’s fine – as long as there is new information discussed.  But if you have to work too hard to come up with things to talk about, you don’t need a meeting.

Now, every meeting you attend will not be akin to a Bruce Springsteen concert.  For the record, I’ve seen Bruce several times on a concert stage and have never walked out of a show thinking, “what was the point of that?”  Of course, it is a good idea for management to get together in the same room fro time to time to review where projects stand.  But “making progress” is never an acceptable answer in a meeting.  And simply going over what is currently in progress isn’t enough of a reason to take people away from actually working on those projects.  There has to be more to your meetings.

So, it’s time for credit unions to make meetings matter.  Here are 5 suggestions on how to do just that:

1. Send the agenda to attendees ahead of time.  Let people know what will be covered in the meeting.  EXPECT THEM to have reviewed it before they walk into the room.  During the meeting, it is OK to deviate from the agenda but never get so far off topic that items on the original agenda are not discussed.
2. Start the meeting on time.  Time is a valuable commodity that cannot be replicated.  Have respect for people’s time by starting the meeting at the time stated on the agenda.  If people are late, so be it.  Make a note of it and take appropriate action after the meeting.
3. End the meeting on time.  The end time is just as important as the start time.  No one likes long, drawn-out meetings.  And if you finish before the stated end-time, for goodness sake, do NOT hang on for the extra few minutes.  Let people go early.
4. Do not simply read handouts to the attendees. Not only is it a waste of time but it is also insulting to people’s intelligence.  Chances are if they are in the meeting to begin with, they can read all by themselves.
5. Do not leave the room without establishing action items and assigning responsibility.  If you cannot come up with action items to take going forward, you didn’t really need a meeting.  You may have needed to exchange e-mails or phone calls but you didn’t necessarily need to take people away from their offices and their teams.

So in summary, meetings should be used to plan and to talk about action.  Stop meeting just for the sake of meeting.  Your time would be better spent actually working on the projects that you want to “meet” about so much.

Imagine this scenario – a married couple (Joe & Jenny) with 2 young children living in the Midwest.  They are both working and own a modest home.  They are not frivolous or irresponsible and pay their bills on time.  They have some credit card debt but it’s nothing that they can’t handle.  They have access to even more credit but since they don’t need it, they don’t use it.  They are living the quintessential American life.  Both Joe & Jenny enjoy credit scores in the low-700′s.

Then the boom lowers.  Because of the falling economy, customer demand at Joe’s company has decreased sharply.  Joe works at the manufacturing plant and is told by his supervisors that the plant is closing to “cut costs.”  They’re very sorry but Joe doesn’t have a job anymore.   Hmmmm, Joe doesn’t have a job anymore….and it’s not Joe’s fault.

A few weeks later, Jenny comes home with the news that her company is closing altogether so she too is out of a job.    So Joe & Jenny have no jobs but what do they still have?  Yep – 2 young children, a mortgage, other bills to pay, and a whole lot of fear and anxiety.  After all, unemployment benefits only last for so long and they don’t come close to covering even the entire mortgage payment.

This goes on for weeks and months.  Joe & Jenny try to find odd jobs but there isn’t much to be had.  Unemployment benefits are almost at their end.  Thankfully, the kids are being fed and they still have a roof over their heads but all of the stress is taking its toll on their once happy marriage.  Their health begins to decline.  They are emotionally and physically exhausted.

FAST-FORWARD to when things finally start to improve – for good. Joe & Jenny have jobs again, the kids are happy, their bills are being paid, and everything seems to be looking up.  The couple goes to the bank for a loan for a new car.  Uh-oh!  The loan officer looks at the not-so-stellar credit reports and breaks the bad news: Joe’s score is only 630 and Jenny’s is 655.  Neither meets the bank’s threshold of a 685 credit score.

Joe & Jenny try to explain their story to the loan officer but he has his marching orders.  Joe & Jenny simply don’t qualify.  It’s the score that matters, you see.  The story is just a story.

OK.  STORY-TIME is over.  This scenario or something eerily similar will be played out many times in the next 5-10 years.  Through no fault of their own and due to circumstances beyond their control, consumers have seen their credit ratings take enormous hits.  So when the storm finally breaks, will credit unions join in the “business as usual” parade and value score over story?

Or will credit unions continue to take the high road and actually listen to their members?  Credit unions have gotten very good at doing it this way.  Let’s hope it continues.  Otherwise, credit scores that have taken a hit will prevent otherwise qualified individuals from accessing the credit they need to start purchasing things again.  I’m pretty sure I heard an economist or two state that consumer spending is needed to jumpstart things.  Just one example of this is the housing market.  The housing market will only improve when people start buying houses again – the problem is that so many would-be homeowners went through the Joe & Jenny scenario and are unable to qualify for mortgages.

So the question now and for the near future at least is –Will credit unions have the courage to put credit STORY before credit SCORE?

When I was growing up (and back when game shows had a place on the primetime lineup on TV) I watched “Family Feud” just about every night.  It was a fun game show and I always got a kick out of the host, Richard Dawson.  In addition to taking liberties unheard of today (such as kissing female contestants square on the lips,) at the end of every question, his booming voice would shout, “Survey said!” to reveal if the answers given by the contestants were also in the survey results for the question in play.

Many credit unions use surveys to measure things like member satisfaction and to gauge the level of interest in a new product or service.  There are several companies that specialize in developing, conducting, and analyzing these surveys.

My issue isn’t with credit unions conducting surveys.  Not at all.  I think it is a good practice and frankly should be done more than it is.  My problem is with what happens after the survey is taken and the results are gathered.

Unfortunately, in far too many cases, nothing happens at that time.  Meaning, the results are given to the credit union’s management and “put in a drawer” to collect dust or reside in a forgotten folder in the Microsoft Office suite.  Sure, the results might be briefly discussed at a management or staff meeting. But many times, nothing changes.  It’s “business as usual “and things keep going as if the survey was never even taken.

To conduct a membership survey and then do nothing with it is a waste of time, money, and energy.  If your credit union does not intend to make adjustments, changes, and improvements based on what the survey results show, don’t bother to do the survey at all.  Credit unions should also prepare themselves for the unexpected…meaning members will be brutally honest about things like service levels and convenience.  Rest assured, if your service stinks, you will hear about it!

This dilemma (doing nothing with results) also exists with surveys that are conducted with your staff to gauge their level of satisfaction and morale.  Too many times, employee surveys are taken and nothing ever changes.  What happens is that employees get so discouraged at the fact that it remains “business as usual,” that they don’t bother to participate in the surveys…or they complete the survey so nonchalantly that getting any valid data is almost impossible.

So the lesson here is to seriously examine and analyze survey results.  Implement some of the suggestions that are made (within reason, of course.  I once saw a survey where the respondent suggested putting a mini-theatre in a credit union’s lobby because their wait times got a little long sometimes.)

Your credit union’s members and employees want to know that their survey answers are not falling on deaf ears.  They don’t expect everything to change.  But they do expect that their participation will be appreciated and respected.  Show them those things and your survey results will be more meaningful than you ever thought possible.  Otherwise, it’s just “business as usual.”

These are all wonderful things!

But one credit union took a different approach in 2011.  At Montana 1st Credit Union, it was all about “Black Wednesday.”  Tyler Disburg, Assistant Vice-President of Montana 1^st  and his creative team designed a loan promotion to be held on the day before Thanksgiving.  They called it “Black Wednesday.” Members would have access to loans for new and used autos, holiday travel, and of course, that all-important shopping money!  The catch – the promotional rates moved up by 25 basis points every 30 minutes. Secured loans started the day at 1.5% and unsecured loans started at 3.5%.   The only exception to the promotion was that real estate loans were excluded. So essentially, the earlier members got to the credit union, the better rate they could get.

This promotion was advertised through direct mail postcards (see the picture above) and radio spots.  When I asked Tyler why he and his team chose to focus on the day before Thanksgiving for such a big loan campaign he said, “in the end, we just didn’t want to compete with the retailers for consumer attention.  Consumers are bombarded with all kinds of teaser sales and other advertising from retailers from Thanksgiving to Christmas.  We wanted to grab our members’ attention before all of that started.”

Good plan!

So what were the results?  According to Tyler, the credit union booked just over $2 million in new loans in 3 hours.  That’s right, just over $2 million in 3 hours!  Tyler also mentioned that a good percentage of the borrowers were new members.

Tyler attributes the success of this one-day loan blowout to the effort, preparedness, and enthusiasm of everyone at Montana 1^st.  The credit union was able to capture the attention of its market because it filled a consumer need and that resonated with people.  Tyler also had some words of advice for credit unions who might want to do something similar, “get your staff motivated and prepared. This would have been a complete disaster without the commitment of our entire team.”

Hmmmm….commitment, enthusiasm, preparedness – sounds like a formula for success to me!  Congratulations, Tyler and your entire team at Montana 1^st.  You’ve shown that with the right level of preparation and commitment, credit unions can achieve and exceed their loan goals!  The secret lies within the focus.

Earlier today, I had a pretty good-sized reality check.  It happened on my drive to Baltimore from my home in NJ.  There I was muttering to myself about how awful the pouring rain was, how badly people drive these days, and so forth.  As I sat stewing in a bad mood of my own making, I came upon a hearse a little south of Dover, DE.  I was right behind the vehicle when it caught my eye.  “It” was the American flag draping the coffin that the hearse was carrying.  My heart sunk as soon as I saw it and I said a quiet prayer for the person who had died.  My guess is that since I was so close to Dover Air Force Base, it had to be the remains of a fallen soldier that was being returned to his or her family here in the United States.  In case you didn’t know, the remains of military personnel who are killed overseas are always returned to the United States by way of Dover Air Force Base.

I began to feel sorrow for the family of the fallen.  I cannot imagine what they are going through.  In a way, I felt as if it was my duty to follow the hearse instead of speeding around in the passing lane.  So that’s exactly what I did for quite some time.   After all, it was the very least I could do for someone who gave his or her life to defend our great nation.

I share this experience with all of you because it reminded me that sometimes we need to pause to remember what is truly important in the long run.  Sure, the work we do in credit unions is important. Loan growth is essential, staff training is critical, and adequate capital is what the NCUA is looking for.  So we have to be mindful of all of these things.

But we also need to be mindful that there are other battles being fought.  Not just in Iraq or Afghanistan.  But everywhere.  Citizens of our country are fighting their own battles against poverty, unemployment, and foreclosure.   In addition to our military personnel, let’s keep our credit union members who may be struggling in our minds and hearts as we strive to live out the mission and vision of credit unions.

Back to me driving behind the hearse…..suddenly, the rain didn’t matter too much anymore.