Credit Union Directors’ duties and responsibilities in today’s financial environment are now more complex than ever. At LarsonAllen, we serve over 300 Credit Unions and CUSO organizations as a nationally known leader providing audit, IT security and consulting services. Today’s Credit Union volunteers have to be able to focus on significant strategic financial trends and results in order to monitor and mitigate risk to their credit unions. Financial literacy training is designed to help you focus on key financial data related to the latest trends and strategic direction.
Recently financial institutions, including Credit Unions, have been under tremendous operational stress. However, even in these tough times, Credit Unions have the ability to make strategic advances and prosper if Directors focus on important financial metrics. Don’t get lost or overwhelmed with financial data; learn how to identify data that measures expected results. Improve your ability to interpret results and spot relevant trends that will improve your strategic planning abilities.
Directors can improve their Credit Unions by knowing where to look in the market for emerging trends, and how to relate those results to operations. LarsonAllen encourages and provides regular updates on emerging trends, standards and compliance changes. Directors should also be aware of essential risk programs, control programs and regulatory initiatives that rate a Credit Union’s financial strength and flexibility, we’ll concentrate on your understanding of how these programs affect and relate to your financial statements and performance.
Why do some organizations seem to last forever, even in the worst economies, while others fade into the abyss in a few years or even months? Successful companies understand the critical nature of aligning their brand, culture, and strategy.
Case in point: Starbuck’s is about to celebrate its 40th anniversary on March 8, 2011. This is a company that spread like wildfire in its early stages with practically no traditional marketing.
How did they do it? First, visionary Howard Schultz began with the brand – the idea of creating that “third place” of social activity after home and work. Schultz had the vision of making the coffee house an extension of your front porch.
Second, they created a culture and experience that gave Starbucks’ customers the atmosphere to feel that their coffee shop was a center for social activity. It’s not just the coffee but the service, the chairs, the music, and the ambiance that brings the brand to life.
Third, they created a strategy to passionately and consistently live this brand and culture every day in every store. More important, the leadership of Starbucks continues to enhance that strategy and fanatically reinforce the standards that give customers the same Starbucks experience regardless of which store they patronize.
Does your credit union offer that type of consistent experience? Are your organization’s brand, culture, and strategy in complete alignment? Odds are you already knew the answer to both questions before they were asked.
Credit Cards Can Help to “Catch” New Recruits
By · CommentsIf you want to make a Police Officer a member for life, one of the keys is to engage them early on in their careers. At Los Angeles Police Federal Credit Union, we present to new officers on their Recruit Day Orientation. This is important, as many recruits are younger and do not have established financial relationships at this point, so we have a good opportunity to sign them up.
In talking with the recruits, we emphasize the pride of being part of the police family, our role in serving the police community, and most importantly, how we can be of assistance to them.
One of our key differentiators is that we offer the recruits a Visa Card with a $1,000 limit. This is important, as at the start of their police careers, they frequently have to buy items for training.
Before the credit card law changes last year, recruits were given this Visa card unconditionally, but due the new law, we now do a credit check first. In the majority of cases, they are given the credit card within the first few weeks of their training.
Over the years, we have frequently heard from police members: “You know, the credit union saved me during my recruit training. That $1,000 Visa made all the difference in my ability to purchase my gun and uniform….” (The City now picks up these items, but gym and other gear, etc., is not covered.)
At LAPFCU, we have several credit card programs: the non-variable rate Classic Visa Card; the adjustable-rate Platinum Rewards Visa, which offers merchandise and cash back rewards; and My First Visa, a card designed for younger members. The recruit class card offerings contribute to our 31% penetration rate, which is good for any financial institution.
We also find that once the new member has credit with us, it makes it easier to sell them on checking accounts, auto loans and more.
As we don’t charge annual or balance transfer fees, as well as have very competitive rates, we find the recruits are very receptive to our Visa card offer. It also sets a positive tone for their present and future relationship with the Credit Union.
DON’T LET YOUR STRATEGIC PLAN TURN sTRAteGIC
By · CommentsYou may have heard the phrase it is better to have a mediocre plan and execute it to perfection than to compile a brilliant plan and follow it with a lackluster implementation effort. This seems like common sense but, unfortunately, what seems like common sense isn’t always common practice. If your credit union has spent the resources to create a strong strategic plan, you owe it to yourselves and your members to use it as a valuable tool throughout the year. Here are three tactics to help you do just that:
1) Make sure every member of your staff has a version of the plan.
While there may be certain sections of the plan that you may not want to share with every employee, it is critical to the execution of the plan that every member of the team knows where the institution is headed. At a minimum, every employee should be provided with a brief synopsis of the plan including the mission, the vision, and the big-picture goals of the organization.
2) Use the plan as a tool for goal setting for every level of the organization.
Immediately after the plan has been compiled and shared with all staff, goals should be set for every position. During every goal setting meeting with each employee, the manager should explain to the staff member how his or her goals are aligned with the company goals and vision. More important, it would be wise to ask everyone at every position to suggest two or three objectives for their job that will allow them to help their organization achieve its goals.
3) Bring the plan to all key meetings throughout the year.
As we discussed above, why would you want to put resources towards writing a plan just to have it sit in the corner of your office to collect dust? Bring to board and management team meetings. Use it as a tool by writing notes in the plan when the team is reviewing progress on goals. When a meeting invariably goes off track, you can refer back to the plan to regain the proper perspective by posing a question such as this: “How will our current discussion ultimately help us to achieve our vision?”
For further assistance with your strategic plan visit BTC at http://www.btcinc.org/strategic_planning or contact us at info@btcinc.org.
One of the most important ways to stay top-of-mind with your sponsor group is through outreach. By reaching out to your membership in the places where they work, socialize and live, you are sending the message that you are willing to do business with them on their turf and terms.
At Los Angeles Police Federal Credit Union, our outreach begins on the recruit’s first day on the job. We conduct presentations on the importance of joining their credit union during their new hire orientations. We regularly recruit between 80-90% of all new recruits on that day as they are excited about becoming part of the police family and eager to join.
Within our Marketing Department, we have a Sponsor Relations Officer whose sole job is outreach. In addition to making presentations at recruitment, he is out-in-the-field a minimum of two-days a week. He regularly visits police stations where we set up mobile units and can conduct every bit of credit union business with the exception of cash transactions (which, as every station also has an ATM machine solves that dilemma).
Additionally, we set-up outreach tables at all LAPD community events – whether it is a Police Activity League golf tournament, annual or department picnic, or a police educational conference. Members stop by to receive freebies and we are frequently able to sign-up new family members.
In addition to outreach, we conduct workshops throughout the year at various police locations. These range from managing your finances to how to get the best auto deal to debt consolidation and more. It is another great way to stay top-of-mind with your member group.
Finally, we share in our outreach commitment from our executive level down. We attend all police social events as they provide an opportunity to interface with the rank and file. They are also a great way to increase business, and as I write, we are processing a refinance request for the Chief of Police based upon a conversation we had during a social event.
As Credit Unions are most often limited with regard to their branch footprint, it is important to remain creative when thinking of ways to add convenience to our members’ lives. Outreach is a great way to foster positive relationships and serve your members.
The Right Fit for Retro
By · CommentsOur field of membership is Chicago Police Officers and their families. Our officers often work beyond the expiration of their collective bargaining agreement with the city as the new terms are worked out and, in some cases, they may work as long as three years before the new terms are mutually agreed upon. When they do finally receive the raise they are entitled to, usually referred to as retro pay, the amounts can be pretty large.
We recently experienced a retro pay period that could have resulted in a substantial amount of deposits coming into the credit union at a time when we were already flush with cash and struggling to maintain our loan to share ratio. We devised a strategy that encouraged our members to use their retro paychecks in a variety of alternative ways, including investing it with the help of our financial planning partners or putting it toward the purchase of an automobile and a corresponding exceptional loan rate.
The strategy seemed to be partially successful in that it minimized the increase in our shares and we did see significant increases in our financial planning business and in our auto loan volume. Have any of you encountered a similar situation and, if so, what worked for you?
4/15/2009 By Jim Rubenstein Credit Union Times
The tragic shootings of three Pittsburgh policemen April 4 galvanized police credit unions last week, led by the Greater Pittsburgh Police CU, to rejuvenate memorial funds to assist grieving members and the public in paying homage to the fallen.
“We’ve been absolutely inundated with calls and e-mails of people across the country wanting to help and contribute to our Pittsburgh Fallen Heroes Fund,” said Sandy Lazzara, president/CEO of the $45 million GPPCU
The three murdered officers, killed in an ambush, included two members of the CU, but Lazzara said, “all three were in here many times and we knew their families as well.” The CU quickly become a central point in the city for fundraising after Pittsburgh Mayor Luke Ravenstahl directed contributions to the CU.
In his public comments and Internet releases, the mayor suggested the GPPCU handle the memorial fund because of its close contact with department personnel and its ties to the Pittsburgh chapter of the Fraternal Order of Police.
“This is all about people helping people and for us this is something where we want to be there to help the brotherhood,” said Lazzara, adding the deaths “have shaken this city to its roots.”
Lazzara fielded questions on city fundraising and efforts to help the families at a April 6 news briefing held in her office. “We just loved those guys, and this is so very sad, but the people of Pittsburgh have already opened their hearts,” said Lazzara, mentioning the bond that police CUs hold with their members.
Scott Arney, chairman of the national Police Officers Credit Union Conference Committee and president/CEO of Chicago Patrolmen’s FCU, said “The tragic events that have unfolded in Pittsburgh and Oakland in recent days serve as a stark and very real reminder to all of us that police officers put their lives on the line everyday in order to keep us safe.”
“For those of us who work for and on behalf of police officers, we need no greater motivation to take our work seriously and to give our best at all times for the benefit of our police officers,” said Arney.
The Chicago CU president said his work as president of a local police foundation has also helped push forward creation of the national Police Memorial Fund, which raises donations to help pay transportation expenses for officers and their families to attend funerals and assist the bereaved.
“That fund,” said Arney, “helped pay for expenses of officers who wanted to go to Oakland,” following the March 21 deaths of four Oakland, Calif. officers.
Separately, the Pennsylvania Credit Union Association posted its own notice of the police deaths on its Web site (www.pcua.coop) listing the names of the officers and the dates for services and the funeral.
“Our heartfelt sympathy goes out to the Greater Pittsburgh Police FCU following Saturday’s tragic shootings that killed three Pittsburgh police officers and wounded a fourth officer,” said PCUA.
POCUC Supports New York Police Credit Union
By · Comments2/27/08 By Lindsey Siegriest Credit Union Times
Police Officers CU Conference Committee Helps Form New York Police CU A brand new police credit union–The Finest Federal Credit Union–is in the process of being created with the help of Chicago Patrolmen’s Federal Credit Union, Delaware State Police Federal Credit Union, and Police Federal Credit Union.
The three credit unions are in charge of the formation and management of the Police Officers’ Credit Union Conference, and each gave $100,000 to assist The Finest Federal Credit Union in its efforts to obtain a charter from the NCUA. If granted a charter, The Finest FCU will serve the law enforcement community of New York City.
Paul McCormack, deputy inspector of the New York City Police Department and future chairman of The Finest FCU, expressed his appreciation for the support the effort has received. “My sincere thanks goes out to the Police Credit Union Conference Committee,” said McCormack. “They are providing a tremendous level of support and have created exactly the impetus and interest we need to build the required capital.”
