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."

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.

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.

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."

• 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.

• Are we addressing the right questions in the board room? If you answered no, the board might be stuck at the dysfunctional or functional level of governance.
• How should we think or act differently? A new approach can help the board evolve to the responsible or exceptional level of governance.

Here is my vision for leaving routinized (unconscious) meetings behind and evolving to "wow" (enlightened) meetings:

One key component is the consent agenda. Instead of listening to a series of operational and financial reports, board members are expected to read a packet of information prior to the meeting and come prepared to approve numerous items with one concise motion. This frees up the agenda to focus on planning and strategy discussions. Safety and soundness will always be a priority, but while the fiduciary role of the board is still necessary, it is no longer sufficient to lead a credit union.

As with most changes, the trick is in the transition from old to new.  As you move toward this new model, some people will adapt quickly while others may find it difficult to leave their comfort zones. One excellent resource I’ve found helpful over the years is a book by William Bridges called “Transitions: Making Sense of Life’s Changes” and its companion “Managing Transitions: Making the Most of Change.”

Credit union leaders that have the courage to forge ahead will benefit by having a productive, engaged and focused board, creating boundless opportunities for the future.

Michael G. Daigneault is the Principal and Founder of Quantum Governance, L3C, a consulting firm that specializes in the art and science of governance.

Daigneault will teach you how to transform your board meetings from boring to "wow" when you attend CUES Director Development Seminar, Sept. 11 - 13, in Vancouver, British Columbia.

Last year at CUES' CEO/Executive Team Network™, our new CEO/president, Charles E. Fagan, III, was announced. We needed to get a photo of him for several reasons. We were in the final stages of production for our December issue of Credit Union Management™ magazine and the program book for CUES Symposium 2013: A CEO and Chairman Exchange. Both pieces needed to feature our new CEO.

We thought we could take a "nice" photo at the conference and make it work until we could have a professional photographer do a new one. We were sending one of our graphic/interactive designers to the event. He is well trained in lighting and photography and would use a brand-new, high-end camera and lighting package to capture the event and shoot video footage for us. Surely, he could take a head shot that would work.

In fact, he did get one that worked, but there's more to the story.

Shooting a professional portrait isn’t something any of us at CUES do every day and definitely not ever "on the road." The stars were aligned against our able, onsite designer. Everything we knew we needed for this important shot was unavailable to him at the conference center. The schedule was hectic and there was only a short time available to capture the shot. After scouting around for a location, the only background available was a drab yellow wall. Lighting was difficult, but he got the shot. Later, he did extensive retouching to remove the background and fix the lighting. The image above is the original; the one just below this line is the retouched photo--greatly improved by his talents.

Though this second photo met our immediate needs, we needed to reshoot Chuck’s portrait for several reasons. The most important was that because it was shot under less-than-ideal circumstances, it didn’t portray him as the genuine, approachable person that he is. It lacked personality.

Bottom line: You must plan when taking such a shot. It is very important you get this right, because oftentimes that photo makes your first impression on others. And first impressions are important.

Here are the seven steps I suggest using to get just the right professional portrait for yourself or the executive you're helping. The next (and last) photo in this post is the wonderful one we got when we applied these guidelines.

Step 1: Get a "feeling."
My first meeting with Chuck was important. I needed to know how to present him to the members. First impressions are important but you need to dig deep to find what makes the person tick.

It didn’t take me long with Chuck. In an instant I knew that I needed to help our members see him for the genuine, approachable person he is. In our short first meeting, I could tell why our board had chosen this man. He is unassuming and truly cares about people. The backbone of the credit union spirit. I needed to capture that.

Step 2: Choose a professional commercial/corporate photographer.
Finding a good photographer that is trained in corporate photography is key. They are easy to find and a good photographer will have an online portfolio for you to flip through. Because they are trained and do this every day, they will help you plan the shot and find the right location at your office or credit union. If you decide to shoot at the studio, they will help you choose the correct backdrop. Time is money. They will save you time and show you in your best light. (Pun intended.) It's better not to chance it with a hobby photographer, or someone who shoots only weddings or babies.  

Step 3: Do your homework.
It is helpful to the photographer if you have samples to show them of what you are looking for. If you liked one of their portfolio samples, be sure to share this with them. Don’t limit yourself to their work. Look around at what other people are doing. Collect samples of photos you like and share them with your photographer.

Step 4: Meet with the photographer to plan.
Most photographers will include a pre-shoot meeting. This helps them get a better understanding of what you want and helps them prepare lighting for the shoot. You may want to have the photo taken in your office or in your credit union. Have them visit you and look around. They will need to make sure there is plenty of room to set up lighting in the locations. Share your samples and ideas with them. Be open and listen to their ideas also. Remember, they do this every day.

Plan everything from what to wear to the possibility of having a professional hair and makeup artist available. Be sure to tell your photographer what image you want to portray (the things you discovered in the initial meeting with the photographer or what it is about yourself you want the picture to demonstrate). Choose backgrounds for the shoot or locations in your credit union.  

Step 5: Prepare for the shoot the day before.
Review your wardrobe choices and organize them based on the order of the shots you plann to take. Make sure everything is cleaned, pressed and ready to go. If you have booked a hair and makeup person, oftentimes he or she will help with minor touch-up on clothing (lint brushes, etc.).

Step 6: Arrive early the day of the shoot.
You want to be relaxed and well rested. You would be surprised at what the camera will see. Then relax and smile!

Step 7: Choosing the right shot.
Your photographer will take many shots. Have him or her help narrow down the photos to the best ones. Then have a colleague, friend or family member help choose the final. We are oftentimes too critical of ourselves or not critical enough. Either way it is best to have someone who knows you well help you here.

If you don't already have a great (and current) professional portrait on hand for that next news story or other opportunity to make a strong first impression, what are you waiting for? Follow these steps and you'll find saying "cheese" a pleasure.

Ellen Bartholomew is CUES' art director.

Underwriting

Here are a few thought-starters to encourage you to examine old-school underwriting policies that may be holding you back:

• Do you only make “yes” or “no” decisions on each loan request? Instead of a “no,” what about a counteroffer that makes you comfortable?
• Do you just approve the specific member request, or do you offer additional lending products the borrower qualifies for, like a credit card or overdraft line of credit? 
• Are you incurring the time and cost of securing collateral that is worth very little when a borrower actually qualifies for unsecured credit?
• Do you automatically decline all requests from members whose credit score is less than 600? You may need to dig deep to find compensating factors, but that’s better than turning a member away when you could make it work.

The approach I advocate is aggressive, yet prudent. Lenders who move to a new-school style of underwriting and get comfortable taking on risk will be able to grow their portfolios, even in highly competitive environments.

Sales

Credit unions don’t have a history of sales as a core competency, and unfortunately, no magic pill exists to immediately transform you into a sales powerhouse. Ramping up sales will take a dedicated effort over several years and require you to examine some tough issues, such as personnel. Consider: do you have employees in place who have a natural orientation toward sales? If not, you need to replace your order takers in sales positions with actual sales people.

The good news—you don’t need to makeover every existing employee into a sales person, just those who field new account and loan requests. Reassign these valued employees into service areas and recruit new staff with sales skills. Trying to make a service employee into a sales guru puts unrealistic expectations and pressures on them; they will probably welcome the relief of a new, better matched position.

Changing methods and philosophies deeply imbedded in your organization’s culture won’t be easy—but it’ll be worth it.

Brett Christensen is the owner of CU Lending Advice, LLC. As such, he works directly with credit unions in the U.S and Canada, teaching and consulting on various lending topics.

Benefit from Christensen’s in-depth lending knowledge and enjoy his personal and entertaining style when you attend both CUES School of Consumer Lending, July 15-16; and CUES Advanced School of Consumer Lending, July 17-18, in Cambridge, Mass.

A month or so ago, NCUA board member Michael Fryzel wrote an excellent article about an easy way to incorporate ongoing professional development into credit union board meetings. He called it "The Extra 30."

Here's how it works.

Each month, directors arrive 30 minutes early to their board meeting. That extra time is spent exploring a topic that is relevant to the board or the credit union. It may be anything from understanding key ratios or an aspect of the competitive environment to compliance and what regulations mean for the credit union. The important piece is that The Extra 30 is spent focusing on a topic relevant to the board and the credit union. 

The benefits of this kind of ongoing development for boards are terrific. When the time is spent on improving board function and the role of governance, it helps boards be more effective and avoid repeating mistakes from the past. When the focus is on strategy development and the competitive landscape, the discussion helps ensure the board maintains a strategic perspective instead of focusing on day-to-day operations. Essentially, these 30 minutes can help prime the pump for more effective board meetings that are geared toward strategy and good governance instead of getting stuck in the weeds. 

It may be tempting to use The Extra 30 as a time for directors to complete online courses on the basics of credit unions and the role of the board. After all, if board members aren't completing their studies between board meetings, why not give them time to complete assignments "in class"? But I contend that focusing on individual learning when the group is together diminishes the opportunity for sharing ideas and asking questions that will naturally promote learning and understanding. Not only that, but it inhibits the opportunity for raising the elephants in the room--those challenges that every board faces that are difficult to address and remedy. 

Consider this option instead. The governance committee selects a monthly topic based on a strategic or regulatory challenge or a facet of board effectiveness. Choosing the topics is easy if the board has completed a self-assessment to help determine its strengths and weaknesses; simply base the topics on the areas that are weaker. Then provide facilitated discussion. Start the forum by reading a short article or watching a video together to set the stage and give all participants a common starting point.  Then ask two or three open-ended application questions like, "How does our board apply this concept?" or "What are two or three practical steps we can take as a board to improve in this area?" If conversation slows, ask another question. This is a simple, efficient way to raise the issues that are most important to the board and develop more confident and effective directors.    

Seek out resources to use as conversation starters. These may be articles from trade publications or credit union blogs, business magazines that provide a cross-industry perspective like Fast Company, or articles or videos resulting from memberships like CUES' Center for Credit Union Board Excellence.

Remember to keep the article or video short so you have time for discussion. Twenty-five minutes of reading or watching with only five minutes of discussion will not yield the results you are seeking.

Give it a whirl. Add 30 minutes before your next board meeting for director development and discussion and see what you think. Use a sample resource from the Center for Credit Union Board Excellence as a starting point. You can view our demonstration video of CCUBE to review all the features that can benefit your board or use one of the many free articles and videos on the home page. Preview them, determine which topic is the best fit for your board, and then let the discussion begin. I believe you will be pleasantly surprised at the result.

Christopher Stevenson is VP/marketing and professional development at CUES.

Get an extra helping of director learning at CUES Governance Leadership Institute. slated for June 2-5 in Toronto.