OUR MISSION:

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(No Transcript)
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OUR MISSION Partnering with people,
businesses and communities for new economic
opportunity.
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CU Movement Challenges
Opportunities in Emerging Markets
Organizational Culture for Emerging Markets
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What issues present challenges to the growth of
your credit union?
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Challenge 1 Slow Growth

• Approximately 6 credit unions disappear per week,
  almost 1 CU per day (Credit Union Magazine)
• Member growth hovers at only about 1.5 annually
• (Filene Institute)
• Conversions and take-overs

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Challenge 2 Taxation?
. . .not clear the extent that the more
favorable (tax) rates fully reflect the tax
subsidy that credit unions receive by
tax-exemption. . .credit unions lagged behind
banks in serving low- and moderate-income
households. -GAO Report 2006
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Challenge 3 Bank Pressure

• Characteristics of New-Breed Credit Unions
• Ignore their traditional mission
• Grow rapidly in membership and territory
• Spend big on showy office buildings
• Lend aggressively to businesses and the rich
• Drive out traditional credit unions
• From the American Bankers Association website

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Challenge 5 Market Saturation

• Anglo population are already homeowners
• Baby boomers will be looking to downsize
• Financially savvy markets are less loyal and more
  apt to shop rates and change financial service
  providers
• Increasing competition over traditional consumers

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Opportunity Industry Growth
Where can credit unions look for growth?
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Opportunity Untapped / Underserved Populations

• Over 10 million households in the US do not have
  a relationship with a financial institution
• An additional 3.3 million people may have a
  savings or checking account but also use
  alternative financial service providers

Source Making a Difference Credit Unions
Reaching out to Members of Modest Means, Credit
Union Executives Society, 2005
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Opportunity GROWING untapped populations

• Immigrants and minorities present population
  growth
• Significant workforce participation
• Unbanked
• Growing entrepreneurial markets
• Consumer power is booming

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Alternative Financial Service Sector
Remittances
40B per year wired to Latin American Caribbean
Estimated 500B paper payroll checks written each
year to un-banked employees
Check Cashing
In 1990, there were fewer than 50 payday lending
locations in the U.S. By 2005, that number had
jumped to more than 22,000 outlets that provided
about 40 billion in high-interest credit.
Payday Lending
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Step 1 The Right Organizational Attitude Step
2 Adapt to New Markets
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How do you Develop the Right Organizational
Attitude?

• Make a Leadership Commitment
• Determine the Credit Unions Readiness for
  Serving Emerging Markets
• Design Implement a Personnel Strategy for
  Serving Emerging Markets
• Create Methods to Maintain an Organizational
  Culture for Emerging Markets
• Adapted from Managers Training for Building and
  Inclusive Organization Mark Grey, University of
  Northern Iowa

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Making a Leadership Commitment

• Enhancing Organization Culture has to be a
  Strategic Business Decision
• The business case drives commitment and dictates
  behavior
• Leadership Commitment is Essential as it May be a
  Long Challenging Process (Board, Management,
  and Staff)
• Commitment Must be Communicated
• Allocate Resources to Do the Job Right
• Financial Management Time
• Planning/Coordination Implementation
• Staff Preparation Educating Training New
  Existing Employees

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Determining Your Organizational Attitude Toward
Serving Emerging Markets

• Is the organization ready for serving emerging
  markets?
• Is the motivation more than fulfilling the CUs
  social mission?
• Its ok to say NO
• How well do you know your company your people?
• What is the existing organizational culture?
• How will the culture change?
• What will the culture become?

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Determining Your Organizational Attitude Toward
Serving Emerging Markets

• Conducting a Needs Assessment of the Organization
• Why audit the culture?
• Do we all believe in the business case?
• Are our values truly compatible with attracting
  serving emerging markets?
• How well is the vision for serving emerging
  markets communicated to managers employees?
• What opportunities or barriers exist?

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Determining Your Organizational Attitude Toward
Serving Emerging Markets

• Components of a Needs Assessment
• Internal External Assessments / Primary and
  Secondary Research
• Shared Definitions Key Concepts (underserved
  vs. untapped diversity vs. inclusion
  accommodation vs. assimilation, etc.)
• Employee Surveys
• On-Site Observations
• Focus Groups
• Interviews

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HOW CREDIT UNIONS PERCEIVE THEIR OWN MOTIVATION
TO SERVE THE UNDERSERVED
NEED
WANT
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Step 2 Adapt to new markets instead of waiting
for these markets to adapt to you
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PERSONNEL PRODUCTS PROCESS PROMOTION
RESEARCH
PARTNERS
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Designing Implementing a Personnel Strategy for
Serving Emerging Markets

• Begin only after completing the Needs Assessment
  and the Business Case
• Board and Management-driven and
• Provide incentives
• Financial, Social, and Moral
• Be sure to network within the organization /
  involve others!
• Be willing to re-design
• Anticipate the additional hours additional
  expenses
• A lot will hinge upon communications resources

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Designing Implementing a Personnel Strategy for
Serving Emerging Markets

• Allocating Resources
• Allocate resources to develop your plan
• Commit to newcomer training / formal training
• Identify and capitalize on existing staff
  talents. For example Develop a mentorship
  program in order to bring in employees who offer
  desired cultural perspective
• Form new alliances support community
  initiatives
• Assess diversify in your board

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Designing Implementing a Personnel Strategy for
Serving Emerging Markets

• Communication
• Not just about speaking listening
• Successful communication is everyones
  responsibility

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Designing Implementing a Personnel Strategy for
Serving Emerging Markets

• Communication Across Cultures
• Be firm and consistent in how you handle
  matters. Perceived fairness among all workers is
  very important.
• Be careful about perception of preferential
  treatment
• Provide on-site language and cultural training
• Be sure all managers know how to use an
  interpreter
• Create open and safe environment for voicing
  differences and frustrations

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Designing Implementing a Personnel Strategy for
Serving Emerging Markets

• Communication Across Cultures
• Offer intercultural training for all employees.
  Make sure training is relevant to the company and
  staff
• Be open about initiatives to serve emerging
  markets including your current members. Do this
  from the start!
• Take time to deal with issues in a timely and
  direct manner. Some issues might seem petty but
  they can grow!

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Designing Implementing a Personnel Strategy for
Serving Emerging Markets

• True story
• Assumptions That Can Get Us Into Trouble in
  serving/employing Non-English speakers
• Theyre Talking About Me!
• They Dont Want to Learn English
• They Know English - They Just Dont Want to Use
  it

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Creating Methods to Maintain an Organizational
Culture for Emerging Markets
Long-Term Cultural Change within the
Organization - Long-term measurable
commitment - Continue Ongoing Evaluation - Be
consistent with incentives and recognition Attitud
e of Inclusion - Be Patient - Focus on the
business decision - Never make people apologize
for who they are
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Creating Methods to Maintain an Organizational
Culture for Emerging Markets

• Guidelines for Effective Evaluation
• Make Evaluation of Inclusion a Business Decision
• Maximize the use of Existing Data and Processes
• Select Appropriate Measurements Prior to
  Implementation
• Allow a Reasonable Amount of Time for Evaluation
• 5. Be Prepared for the Good Bad
• Use a Variety of Tools Surveys, Focus Groups,
  Exit Interviews
• Source Lee Gardenswartz Anita Rowe. Managing
  Diversity. (1998).

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Conclusion

• Step 1 THE RIGHT ORGANIZATIONAL ATTITUDE
• Making a Leadership Commitment
• Determining the Companys Readiness for Serving
  Emerging Markets
• Step 2 ADAPTING TO NEW MARKETS
• Designing Implementing a Personnel Strategy for
  Serving Emerging Markets
• Creating Methods to Maintain an Organizational
  Culture for Emerging Markets

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PREGUNTAS ?
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Muchas Gracias !
107 E. 5th Street Des Moines, IA
50309 515.471.1968 Warren Morrow, CEO
morrow_at_cooperaconsulting.com Max Cardenas,
President cardenas_at_cooperaconsulting.com