THINKing About Leadership With the Mayor of Newark

By Bill Prichard

Cory Booker could have been you. 

For a moment, while he was attending Yale Law School, the mayor of Newark, N.J., looked into the idea of starting a credit union. The idea didn’t pan out and – as Booker told a credit union audience at the THINK 13 Conference on May 1 in Chicago – other challenges lay ahead.

While earning his J.D. from Yale, he ran free legal clinics for low-income residents of New Haven, Conn., and volunteered with Big Brothers Big Sisters. He is a natural at politics, but not because he does things that other politicians do naturally. He has a substantial Twitter presence, which he has used to "crowdsource" problems in his city, to rally public support, even to call out Conan O'Brien for mocking his beloved Newark in a "Tonight" show monologue.

When Booker began his tenure as mayor, the city was overdue for a budget, and the projected deficit exceeded $100 million. He describes residents as being in a state of "sedentary agitation" – frustrated over their circumstances, but unwilling to take action.

Even when Booker wasn’t entirely sure what the ultimate solution would be, he was willing to act. Seeing that the police were overwhelmed, he rode in a patrol car to see the challenges firsthand. He helped set up youth courts and, recognizing that once kids were in the criminal justice system they were sometimes already too far gone, he helped establish a program to bring estranged fathers together with their kids' mothers to work on cooperative parenting. He raised money. And he raised Newark’s profile: "This is the greatest city in the world," he dared to say. 

Booker’s leadership style involves more than a vision. When a resident Tweeted that her elderly father was having trouble getting snow shoveled out of his driveway, Booker showed up with a shovel. When his security detail spotted a house fire on Booker’s street, the mayor ran into the building and carried a woman out.

Once upon a time, Booker could have started a credit union: In effect, he could have been you. But what if you turn the tables? Could you be Cory Booker – or, more like him? What would you do for your constituents?

Booker's presentation at THINK 13 was part of a larger discussion about disrupting business as usual – shaking up old notions about leadership and service, and finding new, breakthrough approaches to doing what we do. Underlying it all was the question of action. How will we keep pace with changing consumer expectations? How will we make our story heard?

If we take a page from the mayor's book, action makes the difference. If law school doesn’t teach you everything you need to know about the legal challenges facing everyday people, start a law clinic. If the government can’t solve all the problems in your city, fuel nonprofits. Shovel driveways. Help your neighbor.

Where are these opportunities in your world? The same place they are in Booker's: everywhere. Watch. Listen. Build yourself a Twitter feed. Bring a shovel. Your constituency is out there, waiting for you to lead.

Bill Prichard is manager of public relations and corporate communications for CO-OP Financial Services, Rancho Cucamonga, Calif. Reach him at 800.782.9042, ext. 3450. Registration information (including an “Insider Rate” discount) for THINK 14 is already available.

Also read "Rudy Giuliani on Leadership."

Great Ideas and a Big Thought About Serving Younger Members

By Lisa Hochgraf

In recent history, participants in CUES Net, the CUES-members-only listserv, were talking about how to best reach and serve younger members.

Tonya Gail, marketing director at $86 million Box Elder Community Credit Union, Brigham City, Utah, offered these great things she's been doing to reach out to the younger demographic; including women:

1. Facebook. "Our strongest and most active demographic on our Facebook page are women, ages 24-44. It's a great way to create a 'relationship,' encourage interaction and get feedback. We also 'fan gate' when posting Facebook ads, which specifically targets exactly who we want to see the ad (age, location, gender, etc.)."

2. Newlywed Club. "We have a newlywed club, which is a great way to get in on the ground level with a young married couple just starting out. Once they are signed up, we can market appropriate products and services for life milestones that will be coming up for them."

3. Kids Club. "From a woman's perspective and a mother's perspective, when you engage my children and have their attention, you will have mine as well. It might seem a removed way to target this demographic, but it gets parents in the door and helps me to market to Mom and Dad while they are there. It also is an investment in our credit union's future because, someday (sooner than you think), these kids will be young adults, needing loans and services themselves."

A "big thought" about the younger demographic came into the CUES Net discussion from Michael Daugherty, president/manager of $15 million Community Plus Federal Credit Union, Rantoul, Ill., in response to a concern that younger members have an "attitude of entitlement" that makes them tough customers:

"Our job isn't to change that attitude; it's to meet their financial needs," he wrote. "We just have to figure out a way to work through it."

What are your great ideas and big thoughts about how to more effectively serve younger members?

Lisa Hochgraf is a CUES editor.

Also read "Understanding the Business of the Younger Generation."

Do you know an outstanding young credit union leader? Nominate him or her for 2013 CUES Next Top Credit Union Exec by June 14, 2013.

New Age Leaders Need Greatness, not Just Goodness

By John A. Vardallas, CAE, CUDE

With all the recent events unfolding in the American business and political sector, perhaps the most concerning isn’t so much the competency of leadership, but rather its ethics. The economic inequality in America is being blamed on the greed of corporate leadership!

What makes a leaders has always sparked interesting discussion. Are leaders born with innate qualities or can effective leadership be taught and learned? This is a very important business issue since recent American employee surveys indicate that half of workers are unhappy because of "not being valued" due to weak organizational leadership.

Are you as good a leader as you think you are? If so, how would your people rate you on some of the following traits or characteristics of effective CEOs. Are you perceived as great or just good?

• a powerful business and people acumen;
• an embracing of diversity;
• the ability to inspire (not motivate) people to achieve;
• a clear vision of the possibilities and the preferred future for their organization;
• ability to build partnerships and alliances;
• being servant leaders to their customers/members;
• a curiosity about the world and a facilitator of change;
• leading more by actions than words;
• ability to utilize technology to achieve business results;
• a risk taker who doesn’t fear innovation or failure;
• the ability to convert the learning of ideas into practice;
• willingness to hire to your weakness;
• ability to develop goals and execute plans; and
• a developer of people--a "human horticulturalist."

I offer the following action steps to inspire you to strive for greatness, not just goodness, in your leadership practices for your credit union:

1) Have a passion for your business philosophy in what you do for your organization's staff, board, members, vendors and the community.

2) Get the right folks in the right seats on your credit union organization bus and give them a license to pursue their passion in serving members.

3) Greatness knows that not embracing innovation is not an option, and great leaders know that if you are not changing you are dying.

Great, not just good effective leadership will be one of the key factors of how credit union success will be measured in the future.

I hope your leadership practices are anchored and reflect the core values of your credit union that will guide your business conduct and inspire greatness in you and your people during this uncertain and challenging economic time in America.

Onward and upward!

John A. Vardallas is a professional speaker/consultant to the Credit Union System and founder/CEO of the Madison, Wis.-based The American Boomer Consulting Group. He can be reached at 608.577.8707.

CUES' 2013 CEO Institutes are sold out. Let Kristin Ryan know if you're interested in attending in 2014.

Learn more about CUES Governance Leadership Institute June 2-5 in Toronto.

Lucky '13 in 13' CU Growth Strategies

By John A. Vardallas, CAE, CUDE

2013 is the year of the snake. The snake is smart, coy and clever, but it is also ready to strike at any time, leaving those around it with the sense it will always be guarded.  

Many aspects of the current American economic landscape have caused many of us to shift to a sense of "guarded optimism." The credit union movement has always faced challenging times. However the times we are facing can be considered critical for the future growth and survival of our credit unions and the millions of members who have entrusted us as their guardian financial stewards.

There is mixed good news these days.

Regulation is getting tighter and more uncertain. Overall net membership growth is increasing. Net interest margins and operating expenses are improving. CEO and board leadership is stable. Inflation is flat, interest rates are at historic low levels and the housing market is recovering. However a high percentage of young adults are not aware they can join a credit union.

This is the year to strike while the time is right since the credit union movement is still feeling the positive affects of Bank Transfer Day. I would offer these 13 in (20)13 suggestions for setting a course to not just survive but thrive: 

1. Work the backyard. Focus on deepening relationships (more wallet share) with your current members. Get close and really get to know your members.

2. Review your fee structures for market adjustments. I am not suggesting we gouge our members, only that we alter fees based on the local marketplace. We still will be the best deal in town.

3. Have a collaboration, partnership, alliance and merger policy/strategy.

4. Train staff to cross serve/sell and wow members at every touch point 7x24x365. All staff and volunteers should be advocates for your credit union.

5. Reconnect with current and new members by offering incentives--such as coupons, miles, rewards, prepaid cards and cash back)--and empowering them to connect. Give members real reasons for being a member, not just a customer. Membership should have its privileges. Offer a certificate of member-ownership and a toll-free member care number.

6. Have a strategy to reach out to serve new Americans and the underserved. We are at the point now for action in really reaching out to consumers in our communities and bringing them into our credit union family.

7. Embrace mobile/tablet technology and social media. Utilize innovative ideas to create "apps for this and that" and do not fear Facebook!

8. Offer tax/legal (wills), end-of-life (burial), and lifestyle loans. Look for non-traditional services that your members could really benefit from using.

9. Reach out to Boomers and women via small business services and health savings accounts.

10. Consider starting a CUSO to offer insurance/travel/HR/IT/data processing products and services.

11. Stop asking Gen Y why they do what they do. Make it a strategic imperative to appeal to and attract more young adults to your membership. The under-30 demographic is your next generation of lending business and lifelong members for your credit union.

12. Focus more on non-interest income debit cards, gap coverage, credit protection, investments and brokerage services.

13. Get the right staff in the right seats on your CU bus to serve members effectively.

The credit union movement in the United States is now over 100 years old, and is in a mature stage of development. If we are not only to survive in the future but thrive, we will have to develop a different strategic mindset about growth. Leaders will have to strategically think outside the box more, and innovate and execute faster and at a greater level than the competition. Credit unions will need to fine tune, hone and focus energies on clearly defined goals and with a commitment to achieve them.

John A. Vardallas CEO/founder of The American Boomer Group, Madison, Wis., is a professional speaker and strategic planning facilitator to the credit union system.

You may also be interested in reading "Growing Credit Union Revenue Streams."

A Framework for Director Development

By Teresa Freeborn

One trait setting credit unions apart from our financial services competitors is a history of collaboration with one another. In that spirit, when Xceed Financial Credit Union was asked by CUES to describe and share our director education policy, we were happy to do so.

Xceed has a long-standing commitment to director education, going back much further than the NCUA requirements that came out roughly two years ago. When we onboard a new director, they undergo a six-month orientation period, followed by two years of training modules, made available through CUES Director Education Center. Thereafter, we choose new courses each year to further build their knowledge base. Here is our detailed curriculum:

Year 1 Modules

• Board Governance: An Overview
• Role of the Board
• Role and Function of Board Committees
• Role of the Individual Director
• Role of the Board in Delegating Operating Authority to Management

 Year 2 Modules

• Role of the Board in Strategic Planning
• Role of the Board in Recruiting, Compensating & Assessing CEO
• Role of the Board Establishing an Effective Risk Management Framework
• Monitoring Credit Union Performance
• Role of the Board in Reporting Membership

 Year 3 Modules

• Recruitment, Election & Orientation of New Directors
• Role of the Board in Mergers, Acquisitions & Strategic Alliances
• Models of Governance: An Overview
• Two electives

Our experience indicates having a structured continuing education program helps board members become better volunteers. Drawn from our SEGs, many don’t have any credit union background. The learning modules help transition them into their role as credit union leaders and generally prepare them to be successful in matters of governance and financial decision making.

Feedback has been overwhelming positive. Of particular note is the observation the content strikes just the right balance of providing relevant, important information without overload. CUES reports individuals who complete modules through the CUES Director Education Center show a boost in scores from roughly 67% on the pretest, to 93% on the post test; which seems to be consistent with our results as well.

Given Xceed's nationwide footprint, our volunteers live all over the country and it’s challenging to pull everyone together. Board members usually phone in or use our branch video conferencing system to connect to meetings. Making online training available is another easy way for us to bridge the geographic distance and keep board members engaged and connected.

Teresa Y. Freeborn is President/CEO of Xceed Financial Credit Union, El Segundo, Calif.; and Chairwoman of CUES’ board of directors.

CUES Director Education Center is your one-stop resource for providing solid, foundational knowledge for your directors so they can fulfill their volunteer responsibilities with confidence. Become a CUES Director member today to take advantage of this easy-to-use training tool.