Managing Growing Pains

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Managing Growing Pains Sustaining Branch Growth
National Federation of Community Development
Credit Union 30th Annual Conference San Juan,
Puerto Rico
presented by Helen C. Godfrey, Pres/CEO
Shreveport Federal C.U. Provision Concepts, Inc.
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Top 100 Credit Unions in Net Worth to Assets as
of 12/31/03
Shreveport FCU is 82 within credit union 50 -
100 million
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February 2004 Credit Union Times report,
Shreveport is 56 in the country in Return on
Assets within credit unions over 50-million
Shreveport FCU 56

• presented by
• Ms. Helen C. Godfrey
• Shreveport Federal Credit Union

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• Leaders who embrace growth within their
  organizations thrive in the midst of chaos and
  are not disoriented when the rules change, i.e.
  technological environment that continually
  reshapes the landscape-legislative and regulatory
  environment that shifts at the speed of light

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• These leaders create organizations that are
  strong enough and resilient enough to weather
  unpredictable downturns or onslaughts.

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How To Manage Growth

• Acknowledge the past, appreciate the legacies and
  understand the value of both They are foundation
  for the futureNOT THE FUTURE

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Steps to Managing Growth - 1

• Make a commitment to learn more about the members
  and their needs and desires when meeting with
  members at meetings, trips, in the lobby, at
  plants, anywhere.

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1 Place Member at Center of all decisions

• Listen to the member
• Respond to the member
• Deliver what the member wants
• Managers and other leaders can not thrive by
  imposing their own views or any groups views on
  the marketplace.
• Ask the tough questionWhat are the members
  needs and preferences?

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Cultivate closer relationships with members

• Use the internet and other means collect
  e-mails as conscientiously as you collect
  nameswould you open an account without a name?
  Use the e-mail blast to keep member connected.

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Some areas have the tendency to not view
themselves as customer service entities (i.e.
collections department, accounting bookkeeping
departments, maintenance people, secretaries,
etc.)
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Service Recovery

• Let employees know you value recovery instead of
  blame employees must be comfortable in the fact
  that if they make a mistake, they will be okay as
  long as they make it right with the members
• Practice service recovery internally if you
  dont apologize to each other when you make
  mistakes, youll never do it effectively with
  members

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2 Manage Growth Through Information and
Education

• Someone, somewhere has a better idea and our role
  is to find that idea, learn it and apply it as
  fast as possible! Encourage input and ideas from
  everywhere in the organization!

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Four Characteristics of a Learning Organization

• Information is shared and accessible
• Learning is emphasized and valued
• Mistakes and failures are not punished (they are
  identified, rectified and used as education)
  DONT REPEAT THEM
• People are expected to learn constantly

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Book Club

• Team leader and team choose book(s) to be read
• Lead team to read books and have discussion
• Team leader lead book club discussion

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Implement Accurate ALM Strategy

• Understand that ALM is the major portion of what
  we do
• Manage assetsidentify them, cash, loans, fixed
  assets,
• Manage liabilitiesidentify them,
  deposits,equity, payables, etc
• Set targets that will move you to your goals

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Strategic Planning

• Conduct a member survey and use the results at
  the next planning session
• Use the CUNA E-Scan and discuss trends,
  opportunities, and challenges
• Conduct and present economic and/or financial
  analysis, including comparisons to peer credit
  unions
• Present strategic information in topic specific
  areas such as delivery channels or serving
  small businesses

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• Set a definitive strategic direction and be sure
  that everyone in the organization know what that
  direction is (the Mission))
• Job descriptions should reflect expectations of
  management, staff and board and the entire
  organization must understand and respect roles.
• The Vision and Image is articulated through the
  organization.
• Make sure there is a stated set of Values to
  guide the company. This will help keep all key
  players on the same page as to how we accomplish
  our mission, vision and image.

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Succession Planningnot just for CEOStaff
Board should have a plan

• Prepare people for promotion
• Management team training corps
• Establish a talented pool of people
• Prepare them for where they are going rather than
  where the are
• Stay FUTURE focused

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• Hire good attitudes and teach information
• Train leaders and good customer service
• Tell people why we do what we do as well as what
  we do
• Title and position are not supreme value all
  leadership wherever it is
• If you are not on fire, you will never kindle
  fire in others

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5 Create a Performance Driven Culture

• Profit is a by-product of customer service
• It is not an end in and of itself
• Its something that is produced by your efforts
  the way you treat each other and the way you
  treat the members

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Have an aggressive plan to increase

• Products per member (minimum 31 three products
  to one member)
• Loans generates income
• Regular Member deposits available to invest
  in loans

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Measure, Measure, Measure

• Financial performance report
• Callahans
• Monthly Benchmarks (each branch leader must know
  the net increase required of their
  department/branch in order for the team to make
  the corporate goals)

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Budget Comparison by Branch
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Budget Balance Sheet
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