Organizational Fitness Model

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Organizational Fitness Model

• Energy Capital Credit Union

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Mission

• Focused Purpose

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Strategic Advantage
Convenience
Premier Service
Added Value
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Vision Statement

• Future Perspective

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External Assessment

• Member Surveys and Profiles
• Member survey completed every three years
• Industry and Competitive analysis
• Peer group data
• Raddon CEO Strategies
• Environmental Assessment
• Environmental Scan
• CUNA
• Fredrickson and Associates

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Internal Assessment

• Staff Feedback
• Quest for the summit staff survey completed
  Annually
• Strategic Planning questionnaire completed
  Annually
• Finance
• NIAS Quarterly updates
• Marketing
• Quarterly Marketing Activities Committee updates

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Internal Assessment

• Information Systems
• Quarterly Operations committee updates
• Operations
• Quarterly Operations committee updates
• Lending
• Quarterly Operations committee updates
• Human Resources
• Quarterly Operations committee updates

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Key Result Areas and Objectives

• Development of KRAs
• Development of Strategies
• Development of Objectives
• Development of Action Plans
• Development of resource alignment by creation of
  the annual budget
• Organizational accountabilities
• Action plans are assigned to the appropriate VP
  reviewed monthly and each plan receives a
  performance rating.

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Basic Organizational Structure

• Organization Pods
• Organization Evolution
• Scenario Planning
• Strategic Planning
• Synthesized roles and Responsibilities
• Job Descriptions incorporating service standards
  for internal and external service
• Policies and Procedures developed and posted on
  the intranet for the most current version
  available

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Core Competencies

• Identification of core competencies
• Staff receives quarterly coaching by their
  supervisor where core competencies are
  identified.
• Leveraging of core competencies
• Staff participates in various work teams
  throughout the year where core competencies are
  utilized as well as their current job
  assignments.
• Development of core competencies
• An annual training program has been established
  for all staff to complete. Needed training is
  defined by regulatory needs, career pathing needs
  and improved performance needs.

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ECCU Teams
Celebration Team
Intranet Team
Premier Service Coordinator Team
Lending and Operating Policy Team
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Information Systems and Technology

• Enterprise systems design
• Annual IS plan is developed where enterprise
  system design is updated and future enhancements
  are noted.
• Organizational and communication systems
• Currently these include Local Instant messenger,
  email, and our corporate intranet as well as Team
  Vision - our internal staff publication.
• Targeted information
• Markets are identified using our Core-Trac
  systems and target market campaigns are created
  and reported to the member activities committee.

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Information Systems and Technology

• Data Integrity and Security
• A Pix firewall has been installed to prevent
  unauthorized access to systems
• An Intrusion detection system has been installed
  that tracks and alerts IS if unauthorized access
  is attempted or gained.
• Monthly intrusion audits are conducted by Digital
  Defense.

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Information Systems and Technology

• Help Desk Response
• All help desk requests are logged into a data
  base on the corporate intranet that allows users
  to view the status of any outstanding request
• Network engineers Key Performance Indicators are
  based on quality and speed of completed request
• IS VP reviews any items outstanding over 30 days
  with the CEO and EVP and determines viable
  solutions to expedite request.
• Application of Technology
• All software applications are reviewed annually
  for sunset if needed and if no longer viable.

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Organizational Efficiencies

• Quality control processes
• Internal audit of Branch and CUAC loans.
• A monthly report is forwarded to the CEO monthly
  of audit exceptions.
• Balanced Oversight and direction
• CEO Provides oversight to VPs, VPs provide
  oversight to staff. CEO reviews strategic
  objectives with Management team and staff.
• Managed outsource and alliances
• Credit Union Alliance Corporation
• Credit Union Acceptance LLC
• Credit Union Companies of Tx Mortgage Co.
• Members Financial Services

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Organizational Efficiencies

• Identification of Key Performance Indicators
• Established KPIs and incorporated into the
  premier service program
• Call Center KPIs established
• Accounting KPIs established
• IS KPIs established
• Other back office staff KPIs established
• Corporate KPIs established

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Operating Agreements

• Team Rules

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Key Practices

• Start and end meetings on time
• Avoid side conversations during meetings
• Use the quality improvement toolbox
• Utilize ECCU professional etiquette Standards

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Team Attitudes

• Be optimistic and positive
• Be supportive and respectful of your team
  members, leadership and our credit union
• Take ownership be the solution, not the
  problem
• Remember that actions speak louder than words

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Team Commitments

• Clarify expectations and respect boundaries
• Honor agreements
• Encourage mutually serving intentions
• Share information
• Tell the truth
• Maintain confidentiality
• Support other team members
• Respect others knowledge, skills and abilities
• Seek input from others
• Share skills and talents

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Quality Improvement Toolkit

• Plan
• Determine opportunities for improvement
• Identify the requirements
• Define the problem
• Collect data
• Analyze root cause
• Find solutions
• Do
• Implement solution
• Check
• Monitor results, evaluate against plan
• Determine reasons for deviations
• Act
• Corrective action for deviations
• Standardize the process-make successful solutions
  permanent
• Review periodically

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ECCU PROFESSIONAL ETHICS

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• 1.      We value the diversity and hidden talents
  in our organization. We will continually look
  for these qualities so they can be utilized in
  our business.
• 2.      The Intranet Bulletin Board and Intranet
  Message Board will be kept exciting and lively to
  allow each staff member to check it periodically
  through the day for vital information and changes
  that will give valuable communication for our
  success as an employee and a business.
• 3.      All staff has an opportunity to show how
  they value a co-worker through the Hi-5 program.
  This will allow immediate praise for all levels
  of staff through written documentation.
• 4.      Our members have our commitment to meet
  their immediate and long term needs. When we
  have a declined loan we will take it as an
  opportunity to work with that member towards
  repairing their credit and financial
  health.5.      Praise and appreciation for a job
  well done can be shown through an immediate
  thank you and job well done.
• 6.      Intranet postings of Policy and Procedure
  changes are visible for 30 days to allow
  employees to acknowledge the changes and improve
  communication.
• 7.      Sincere encouragement will be given daily
  to one another by all.
• 8.      Employee issues will be dealt with in a
  direct manner by addressing them first with the
  person that is involved and then with management
  if needed.
• 9.      Self-improvement through education and
  training will be accomplished by completing no
  less than 10 hours of courses per year.
• 10.  Helping our members make their dreams come
  true will be accomplished by required attendance
  of no less than two training sessions during the
  implementation of a sales and service culture.
• 11.  Self, peer, and management assessments will
  be made to determine how well each employee is
  knowledgeable on our products and services in
  order to effectively cross-train where needed.
• 12.  Continued training will occur on all levels
  when observed as an area of weakness and a growth
  opportunity.

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Project Planning and Development

• Project Planning and development
• Action plans are created for all projects and
  managed using outlook task
• Project Results Management
• A Project Performance Evaluation is completed on
  all finished projects
• Communications
• Updates occur using outlook task and shared
  folders.

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Performance Management

• Quarterly Coaching
• The CEO meets with the branch managers and VPs
  on a quarterly basis for coaching.
• VPs visit branches at least once per quarter for
  coaching and observation.
• All staff receives quarterly coaching from their
  supervisors.
• Annual Evaluations

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Performance Management

• Audits and Exams
• Internal audits are conducted on all branch
  activity and CUAC loans.
• Texas Credit Union League conducts an annual
  audit and an annual ACH audit.
• The State Credit Union Department conducts an
  annual regulatory exam
• Periodic Audits are conducted by the State on IS
  systems
• Federal Reserve bank conducts annual audits on
  Stock Secured loans
• Cash counts are conducted quarterly at all
  branches by TCUL

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Performance Management

• Progressive Discipline
• Staff receive a verbal warning, a written
  warning, then are suspended or terminated based
  on the event.
• Stewardship of KPIs and Premier Service
  objectives
• Progress is monitored and reviewed with staff
  monthly on success of objectives. Results are
  posted on the corporate intranet.

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Premier Service Results ECCU Overall Results
(Points)
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Cost BenefitProduct Goals
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Rewards/ Consequences

• Incentive Systems
• Our Premier service program was adopted in 1Q04
  including sales and service and KPI objectives,
  quality circle components, and mystery shopper
  components.
• Recognition Systems
• ECCUs Star Program was launched 1Q04 providing
  non cash recognition to associates.
• Awards
• ECCU conducts an annual award banquet recognizing
  various achievements

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Values and Beliefs
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Leadership

• Management Modeling
• High standards are established and maintained for
  management team
• Strategic/Tactical balance
• Appropriate balance of activities are reviewed
  and changed based on current needs.
• Empowerment
• High levels of autonomy are granted to branch
  managers to allow full service to members.

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Leadership

• Building effective teams
• Current teams include Intranet team,
  Relationship pricing team, Loan and Operating
  procedures team, and celebration team.

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Developmental Coaching

• Developmental Coaching occurs based on core
  competencies identified and career pathing
  developed by supervisor and associate

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Human Resource Systems

• Selective Recruitment
• ECCU has identified specific talents and skill
  sets required for each individual job as
  identified by our CompEase Performance Management
  System.
• Employee Orientation
• Employees receive a two week in-house orientation
  including visits with all departments as well as
  a minimum of two week onsite orientation provided
  by ECCUs corporate trainer.

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Human Resource Systems

• Continuous learning
• An annual training plan is provide to all staff
  that includes in-house courses provided as well
  as online training provided. Outside training
  also is required in some cases.
• Career Pathing
• Associates are coached regarding various career
  paths and training is developed to allow them to
  achieve required competencies. Job placements are
  provided to in-house staff prior to outside
  placements.

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Organizational Character

• Informal communication
• Open door policy
• The Box
• Email
• Intranet staff issues section routes all comments
  to CEO.
• Organizational feedback
• Monthly management team roundtable sessions
• Adaptability to change
• Continuous monitoring of financial condition and
  strategic objectives determining corrections
  needed and communicating changes to staff.
• Just have fun
• Development of ice breakers in meetings
• Training exercises that create fun and open
  dialogue
• Employee Fund developed to allow Supv to have
  immediate staff rewards.