An E-publication from the Delaware League Services
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An E-publication from the Delaware League Services |
Bonus Edition, Fourth Quarter, 2006
Companies are committing slow suicide…
Is your organization doing it too?
By Carolyn Warden, Shared Resources, Consulting & Education
COLUMBUS, Ohio (9/11/06)--Check printer XXXX announced it will close two plants this year--one in Columbus, Ohio, and one in Knoxville, Tennessee. The closing of the west Columbus plant will eliminate 56 jobs. The move, which includes shifting the Columbus duties to Des Moines, Iowa, was part of "a normal ongoing business-improvement process," said spokeswoman XXXXX. Between digital printing and the increased use of electronic funds transfers, the demand for checks has dwindled overall.
This company is murdering itself and has been for decades. I’m worried most companies are operating like emphysema patients with 3 pack-a-day habits.
What facts support why I say this?
1. In the 1960’s Congress started phasing out paper checks for cost effectiveness and fraud prevention (through kiting). I read about it in my Weekly Reader and I couldn’t imagine not receiving my allowance in my hand.
2. In the 1970’s ATMs became the hottest spots on college campuses. Those students are now at their peak earning years, in leadership positions at work and in their community. On the Georgia Tech campus, their one ATM did more than 1 transaction a minute, 24/7, even though the building housing the ATM wasn’t open 24/7. I read about it in my Econ 101 textbook – an elective I took when I was majoring in languages. In Atlanta to visit my brothers, for half an hour I stood in awe and watched that line… because I couldn't imagine how that machine could process the screen changes that fast. You know what? It didn’t. Students memorized the key strokes, they used that ATM so much. They didn’t need to see the screen prompts. What a paradigm shift!
3. In the 1980’s paperless payments for consumers came into my life with touch-tone phone systems. Yes, they were slow to set up, but once they were, I saved 17 cents a stamp on my phone and utility bills. The bank gave it to me for FREE as a “gift to the recent grad.” It took 3 – 5 business days to process each request, including transfers of funds within the same bank. Even though its slowness did create some late payment fees for me, I used it for a year until NCUA offered me a job and I moved away.
4. In the 1990’s I had a wallet full of debit & credit plastics. Some cards I had because I liked their designs over others. I had affinity cards that supported charities, or in one case, I thought its “brand” made me look cooler than I was. Another had my photo on it for security purposes – and I paid extra for that even though as a former NCUA examiner I knew the financial institution had to restore my account balance. Plastic took up less space in my wallet, too.
5. Now I’m middle aged – though not in the way my parents were at the same age. I take the time to walk into my CU and talk to the MSRs because I work from home – and I enjoy a friendly conversation. Not trusting machines or understanding technology has nothing to do with it. I choose to waste time (= lost billable hours) because the staff is nice to me, remembers that I travel from time to time, and asks me about it.
These are reasons why I see this check printing company's behavior as being the same as killing itself. “Budding consumers” in their teens told the world by their behaviors 30 years ago they wouldn’t be carrying around a checkbook today.
Why didn’t this company refine/redesign itself 15+ years ago as either a printer of all kinds of secure documents, or as the makers of various conduits for funds movement and get involved in plastics, consumer education tools for loan-by-phone and Internet bill pay?
I don’t know.
Were they so comfortable with the income they had they got lazy and forgot to look out at the end-user of their product? Did anyone there see that checks used per person were dropping even when their annual income was rising due to population growth? Did they shoot the messenger of “Change is coming!” because they had a dysfunctional work environment?
I don’t know. I just know they had plenty of lead time to avoid closing those 2 plants and ending 54 jobs.
This news brought back memories of the first CU I saw close. Their sponsor made glass milk bottles: the little ones that came with my pre-school snack and the big ones in my great-grandmother’s fridge. I was sad for them; of course I was one of those wet-behind-the-ears baby examiners, too.
I was buying my milk in plastic & paper… as was everyone concerned about having glass around kids, or didn’t like to lug heavy bottles home. Certainly milk cartons and plastic jugs had been increasing in popularity for over 20 years by 1980. The CU knew their sponsor’s business was closing, and people would lose their jobs soon. Their board actively chose to stop enforcing their collection policy and following their loan standards because their members’ lives were so hard already. Wish I were kidding.
Milk consumers and the sponsoring employer didn't kill that credit union. The board and management team did through the choices they made and the choices they refused to make.
A case on point: Nokia, of cell phone fame, is a 100+ year old company that started out making rubber boots, the best rubber boots, when it was organized. As Scandinavia moved away from an agriculture-focused economy, Nokia’s directors realized the demand for rubber boots – even the best rubber boots – was going to shrink materially. Their board believed it was their responsibility to do the best they could by the owners and the employees, so they perceived theirs as a moral mission to reinvent the company. In the 1950’s, after much study, they set aside the molds for the best boots and turned into an electronics company, making transistor radios and TVs with tubes inside them. It’s been decades since Nokia made a TV. Now they are devoted to making the best cell phones ever. Ten or twenty years from now who knows what they will be making. They will be doing whatever it takes to do right by their owners and employees, because that's what they are in business to do.
Is that check-printing company headed by people who are more interested in their perks and stock price than doing the right thing by their owners?
I don’t know.
From where I stand looking at them, I have big doubts because they’re letting go of their off-balance-sheet assets (a.k.a. their employees). The only other business line mentioned by the spokesperson is call centers – which makes my stomach ache for the Americans whose jobs are now being handled by English-speaking people all over the world. Would I be crazy to assume those less expensive English speakers don’t buy printed checks from their employer?
I’m worried about lots of credit unions, non- and for-profit organizations – maybe you are too. I know when you are in the middle of a busy organization it is so hard to see where the pressures are coming from that make your daily life so tough. (been there – left there and said I’d never go back – went back and worried myself sick while those around me sang the “we’ve always done it this way” tune - then left there physically and mentally, for good.)
Standing back from an organization's daily activity (frenzy?) I see things – missed opportunities – counterproductive procedures – threats racing towards the front door with enough force to do lasting damage.
As much as I want to work with you to strengthen your organization by implementing assertive strategic plans and injecting “can’t fail if they'll just do it” service and supervisory skills into your staff, if you don’t want to call me for assistance, I hope you will call someone experienced in standing back from your daily fray and tell you what they see that stands in your way of working smarter and happier.
Carolyn Warden can be reached at (303) 791-1768 or carolyn.warden@comcast.net.
Your CUNA Mutual Group Account Team |
NEW CMG ACCOUNT REPS FOR DELAWARE CREDIT UNIONS
Now that Dave Mullen and Caroline Schmidt have retired from CUNA Mutual Group, our credit unions previously served by them will now be served by the following representatives. As we wish the retirees well, we welcome these individuals and look forward to a mutually successful relationship.
Sterling Nowka Sales Executive
Sterling Nowka is a seasoned financial services professional with more than 20 years experience. Sterling is responsible for making sure his ten Delaware credit unions are satisfied with their CUNA Mutual relationship. He’s also responsible for understanding their strategies, their marketplace and their needs.
Sterling was previously an Account Vice President, Corporate Services, and was responsible for consulting with credit union management and delivering solutions which focus on protecting the assets of the credit union and their employees. Sterling has been with CUNA Mutual since 1991, and earned his Bachelor of Science degree from Westminster College.
Sterling can be reached on 800.356.2644, ext. 3873 or sterling.nowka@cunamutual.com.
Tom McLane is responsible for understanding the business needs of seven of our Delaware credit unions. As their CUNA Mutual single point of contact, his goal is to make every experience the credit unions and their members have with CUNA Mutual a positive one.
Tom has more than 15 years at CUNA Mutual Group supporting credit unions. He has a Bachelors of Science Degree in Marketing and a Masters Degree in Business Administration, both from West Virginia University. He holds Property & Casualty Insurance, Life, Health and Accident Insurance Licenses.
“I am very excited and honored to be working with your credit union. As a firm believer in the credit union movement and what it stands for, I truly look forward to serving your credit union for many years to come.”
Heidi Hodgson Sales Repepresentative
Heidi Hodgson has been with CUNA Mutual for six years where she’s had the unique experience of working directly with credit unions and their members. She first started out in the MemberCONNECT Call Center where she was a licensed life insurance agent helping credit union members obtain life insurance to fit their personal needs.
Heidi is located in the Madison, Wisconsin, headquarters and has been a Wisconsin resident all her life. She has a Bachelor of Science Degree in Business Management and Marketing from Edgewood College and is currently in the process of obtaining her M.B.A. in Management from the University of Wisconsin-Whitewater.
Heidi will be working with sixteen of our credit unions formerly served by Caroline Schmidt. Heidi can be reached on 800.356.2644, ext. 7734 or heidi.hodgson@cunamutual.com.
The Allpoint Surcharge-free ATM Network is offering credit unions that are served by the Mid-Atlantic Regional Service Corporation (MARS) -- Delaware, Pennsylvania, Maryland, DC, West Virginia and New Jersey -- another limited-time offer for great pricing of their surcharge-free ATM network.
Allpoint has over 200 participating ATMs in Delaware and over 32,000 nationwide. Members of participating credit unions may use these ATMs surcharge-free. For a listing of these ATM locations go to www.allpointnetwork.com.
There are twelve Delaware credit unions already on the Allpoint surcharge-free ATM network. (For a list of these credit unions, contact Jane Bailey, 800.292.7875 or jane@dcul.org.)
There is no conversion involved or plastic to reissue. Credit unions on the network are billed on their number of active cards each month. The implementation fee is also discounted. This offer is only available to credit unions with less than 25,000 active cards.
If you missed the first two sales and would like to take advantage of this one, please contact Jane Bailey as soon as possible.
This sale offer will expire on January 15, 2007.
Promoting Work/Life Balance….
The Key to Employee and Member Retention
Written by Chris Pajak, Senior Consultant, HRValue Group, LLC
The topic of workplace flexibility has become an increasingly popular topic in recent years and is a key contributor to employee satisfaction, retention, and productivity. Yet when you think about the following, it may give you an entirely new perspective on the catch phrase, “work/life balance.”
I’d like to challenge you to think about it this way. When you look back on your career, whether now or upon retirement, do you ever think you’ll find yourself saying, “I wish I worked more?” Somehow I doubt that most of us would regret that we spent more time with our families, friends and loved ones then we did at work. I recently read an article about Eugene O’Kelly, the former CEO of one of the worlds top accounting firms, KPMG. Mr. O’Kelly spent 30 years at the firm, worked countless hours, missed many a family function, and hardly ever took time off. Then, in May of 2005 at the age of 53, he was suddenly diagnosed with brain cancer and subsequently passed away 5 months later. Stories like this typically make people stop in their tracks and take a mental inventory of how their time has been spent.
We all know that it’s important to strike the right balance in our work and personal lives because life as we know it can change at the blink of an eye. But sometimes organizations don’t always fully embrace the true meaning of work/life balance. In addition, with tighter budgets and limited financial resources to provide employees more substantial pay increases each year, it has become even more important to look at alternative and more cost effective ways to keep employees happy and engaged. So what can your credit union do to better support this philosophy? Here are some thoughts and ideas to consider:
For those who aren’t completely sold on the importance of flexibility and work/life balance, consider the following statistics:
For credit unions, these types of statistics are largely dependent on the size of the credit union (i.e. the larger the credit union, the more work/life benefits provided). However, despite size, credit union statistics continue to show an increase in several different work/life benefit areas:
Now, you may be saying that some of these practices, particularly altering credit union hours or allowing more flexible schedules for employees, can put member satisfaction at risk or are too expensive. However, these concerns can certainly be managed through timely, proactive and increased communication with your members. In addition, many work/life balance programs can be implemented with little to no cost. Remember: credit unions with employees who feel their management supports the true meaning of work/life balance will result in increased job satisfaction, retention and productivity, which will absolutely have a positive impact on membership levels, member satisfaction, and ultimately the credit union’s return on assets!
Chris Pajak is a Senior Consultant for HRValue Group, Middleton, Wisconsin. HRValue Group is jointly owned by a consortium of state leagues and CUNA Mutual Group. HRValue Group provides human resources consulting services to credit unions. For more information or questions on incentives, please call HRValue Group, LLC at 888.272.4598 or visit www.hrvaluegroup.com.
VEHICLE REPOSSESSION & REMARKETING SERVICE
Delaware League Services is proud to announce a new partnership with CenterOne Financial Services. This partnership is designed to assist credit unions in the area of collateral repossession and remarketing. CenterOne is a national leader helping its clients repossess and remarket over 125,000 pieces of collateral in 2005.
Are you looking for a more efficient manner to handle the entire repossession process? With the CenterOne “Online Repossession and Remarketing Assignment” technology, participating credit unions can set up their vehicles for repossession through a secure website. Once the information is entered, CenterOne steps in, seizes the vehicle and delivers it to auction. Credit unions can track the progress of the repossession and resale through this same website. CenterOne is dedicated to getting top dollar for your vehicles as well. What could be better and easier than that?
The League will be holding an informational session on this service on January 25, 2007. If you are interested in learning more prior to that, give Jane Bailey at the League a call on 302.322.9341 or 800.292.7875 or e-mail me at jane@dcul.org.
Thank you for reading Service Issues!
Service Issues is produced by Jane Bailey, Executive Vice President, and published quarterly by Delaware League Services, Inc.