Tips for Successful ACH Usage Discussed in New Council White Paper

CUNA Councils
July 1, 2009

Credit union professionals can discover tips to get the most out of automated clearing house (ACH) usage in the first of two recently released white papers from the CUNA Councils.

“ACH Payments: A Key Tool in Your Electronic Payments Toolbox,” from the CUNA Operations, Sales, and Service Council, analyzes this important time- and money-saving tool for credit unions. The paper looks at how ACH works and how it has evolved, its benefits and pitfalls, and future innovations.

Additionally, it provides examples from credit unions that use ACH to originate and receive funds transfers. It illustrates how each of these credit unions approaches the process a little differently, and includes tips for successful usage.

A second white paper, “Differentiating Credit Unions by Asset Size: Key Financial Issues,” examines the characteristics of credit union groups when asset size is the distinguishing variable. The paper, sponsored by the CUNA Chief Financial Officers (CFO) Council, was authored by Dr. Harold Sollenberger and Andrew Stanecki from Michigan State University in East Lansing, Mich.

Using trends from the past four years, the paper arranges credit unions into six asset size groups and draws comparisons. It then offers analysis on key issues, including: member growth, deposit growth, loans-to-deposits patterns, asset quality, capital, earnings, operating expenses, liquidity, and more.

CUNA Council members are entitled to complimentary copies of these white papers; non-members may purchase the white papers for a price of $50 per copy.

The papers are available online in the white paper section of each council site - choose the “OpSS” tab for the ACH paper or the “CFO” tab for the differentiating credit unions paper.

Book Review: Staying Healthy in Sick Organizations: The Clover Practice

Wendy Soucie
June 30, 2009

Working in an emotionally healthy business environment is appropriate for both business owners and employees to consider. Business owners should strive to create a work environment that everyone can flourish in so their business will be successful (Law of Attraction). Workers need to take responsibility for their own choices and actions. We must recognize that our emotional, spiritual, and physical health is tied together.

Staying Healthy in Sick Organizations: The Clover Practice by Kathleen A. Paris is about living your own life. It's about making the necessary changes to how you view things, your reactions, and ultimately your actions to move forward. It's about being truthful to yourself and others. It provides a solid framework for your professional and personal life—one that you should embrace and use daily.

I easily identified with the concepts as they were presented and liked the interactivity and engaging style of the author. The book has a warm tone that allowed me to eagerly read it in one sitting, and then return for details and the homework. The three principles, which form the cornerstones of Dr. Paris' work, are:

• Tell the truth, always.
• Speak for yourself.
• Declare your interdependence.

Dr. Paris has written this book with several worksheet sections so that you can really use this book to self-assess and figure out your starting point. For some, this may be the point of not moving forward due to fear of admitting a few things. I urge you to continue. The Clover Principle is aptly named as Paris simplified the steps (in a three-leaf clover concept) to help people follow along, and it's easy to revisit sections to refresh a point.

With the recent investment frauds and past Enron scandals over the past years, I was not surprised to see some of the statistics about lying at work, college, or home used in the book. There was even a slam on the advertising and marketing realm (my profession) with the example of marketing products that “4 out of 5” professionals recommend. . . .” Ouch!

I really took to heart the chapter on “Speak for Yourself.” When problems occur at work, it's really easy to jump on someone else's mistake. After reading this part, I resolved to work harder in this area. Understanding your motives, and when you should speak up and the possible repercussions, are the key points to remember.

None of us go the journey alone. We can't work in a company without help. Paris states: “Recognizing how everything is connected can be a hard sell in a country that celebrates its in dependence every Fourth of July.” One of the most important points is “when something is consistently going wrong in a work relationship, we are part of the problem.” This statement caused me to go to a staff member and tell her I was angry about something. I admitted it happened every time so I likely was doing something to cause the problem. This person was truthful with me about what I was doing that didn't allow her to do her job correctly. It does work.

Dr. Paris also addresses when its time to leave a job. It is no fun working where you are dissatisfied or unfulfilled. It is even worse if the situation is compromising your health, as Dr. Paris showed in several case studies. She asks us, “Are you getting a good return in terms of satisfaction, self respect, and dollars?”

The resource section cites several good books for finding your passion, assessing your talents, and taking the next steps. Having read some of these books, I would agree they are right on for helping someone to the next step in a career-changing process.

Wendy Soucie is Madison, Wisconsin-based social media and marketing consultant. Contact her at wsoucie@wendysoucie.com, www.linkedin.com/in/wendysoucie, or 608-225-1985.

Challenging Conventional Wisdom: Revisiting Women's Workplace Initiatives

Keyonda Williams
June 24, 2009

Flash back, for a moment, to the early-to-mid 1980s. That's when many U.S. businesses decided to get smarter about creating work environments that met women's needs in order to retain more women (and working mothers in particular). In large part this was due to the fact that between 1958 and 1978, according to the Urban Institute, the overall female employment rate rose by more than 50 percent and the employment rate of married women with children doubled. So, various programs were implemented under the general rubric of "women's initiatives" including on-site day care, facilities for nursing moms, more flexible work schedules, and so on.

Eventually, many companies chose to broaden these programs (as appropriate) to men but, especially in industries where the retention of women is an issue (law and accounting firms, for example), they are still primarily focused on retaining women.

Now flash forward to the present. According to the Bureau of Labor Statistics, women currently represent about48 percent of the labor force. More women make up more of the workforce and never has the demographic landscape been as diverse as today. Women workers represent more ethnic and religious groups, people of color, language groups, people with disabilities, etc. than ever before. And, in addition, it can be argued that one of the most significant differences among women in today's workforce is generational.

There are four generations of women in the workforce today who, in many cases, hold very different views about work. It is our view that companies seeking to attract and retain women today need to revisit the women's initiatives of yesteryear to ensure they engage women across all generations.

A look at the breakdown below of the age groups among the four generational categories (Millenial, Generation X, Boomer, Mature) used by demographers illustrates this fact, especially if you consider the different phases of life that women experience within those age ranges and in those historical timeframes.

For instance, a woman born at the beginning of the baby boom who has climbed managerial ranks was most likely, early in her working life, a minority solely based on gender. In many jobs, pregnancy meant an end to a career and the pay gap between men and women was often significant. Compare her experience to a woman entering the workforce today, who will likely start on nearly equal footing with male peers.

In addition, consider the differences in attitudes about work based on the life experiences among these categories. Many studies have underscored how these dynamics affect recruitment, retention, and succession planning.

• Baby Boomers: While very dedicated and loyal to work, they are facing retirement. They also need more time to take care of the elderly and/or adult children moving back home and/or grandchildren.
• Generation X: This group is willing to work hard, but have families with small children to worry about. Many of the family issues fall on their plates.
• Millenials: Are really focused on leisure time and living life to the fullest. They want time to learn and develop in the workplace but also have flexibility to explore other personal interests.

If your organization has a women's initiative with the intent of attracting and retaining more female employees, this might be a good time to revisit it with the knowledge that women are as diverse a group as any subset of your workforce and what works for one generational group may not work for another. Here are some general steps to take and questions to ask:

• Understand who your audience is. What does your workforce look like today? What will it need to look like tomorrow?
• Ask your female employees what really matters to them. What engages them? What will make them more productive? What will make them most likely to stay and make your company successful?
• Develop programs accordingly. And, periodically ask, "Are they still fulfilling their intent?"

Keyonda Williams is an HR specialist with Capital H Group, a human-resources consulting firm based in Chicago.

The Role of Succession Planning and Leadership Development in Successful CU Mergers Addressed in New White Paper

CUNA Councils
June 17, 2009

The role of succession planning and leadership development in successful credit union mergers is discussed in the first of two CUNA Councils white papers.

“Converging Executive Teams: The Role of Leadership Development and Succession Planning in Successful Credit Union Mergers” by the CUNA Councils offers a glimpse into credit union mergers, and the various approaches for bringing together a leadership team, depending on the scope and circumstances of the merger. Current merger trends and the reasoning behind those proposed consolidations are addressed, along with the potential impact of a lack of succession planning.

The paper concludes with three credit union merger case studies detailing how a chief executive was selected, an executive team was brought together, and a leadership development program was created to ensure the merger strengthened the continuing organization and its ties to members.

The second new white paper examines strategies for customizing collections to fit a credit union’s membership and market. “Collections: Not a Cookie-Cutter Operation” by the CUNA Lending Council examines program structure, industry trends, and working with collections agencies. It also looks at collections philosophies of helping members versus managing numbers.

Dana Rawlings, lending council executive committee member and senior vice president and chief operations office for Smart Financial CU in Houston, believes that collections objective should echo credit unions’ “People Helping People” philosophy. “So many credit unions focus on how many calls you make, and on keeping [delinquency and charge-off rates] down,” Rawlings said in the paper. “But if you help members, the numbers will take care of themselves. And those members will send others to your credit union.”

CUNA Council members are entitled to complimentary copies of these white papers; non-members may purchase the white papers for a price of $50 per copy.

The papers are available online in the white paper section of each council site - choose the “Cross Council” tab for the mergers paper or the “Lending” tab for the collections paper.

Use Layoffs Sparingly and Strategically

CU360
June 17, 2009

Traditional layoff tactics might cut costs, but they often cause damage on the inside and the outside that can be difficult to repair, notes strategy+business magazine. A more thoughtful and strategic approach to layoffs softens the short-term impact while leaving an employer poised for growth.

Layoffs are difficult and gut-wrenching and often fail to deliver expected cost savings or improved performance. Slashing jobs can leave a company vulnerable to competitors and constrain its ability to be an industry leader. That strategy will prove particularly flawed during this recession, when entire industries are shifting and dominant players are changing.

CU360 is an online portal for benchmarking tools, market insights, industry data, and analytical information. This article was orginally published online by CU360 at cu360.cuna.org. Reprinted with permission.

To implement business changes, leaders will need to have the right talent in the right roles. Workforce reductions must not only deliver sustainable cost savings right now, they must also leave skilled and motivated people in critical positions to maximize the enterprise's present and future success.

Achieving these objectives requires a set of processes that strategy+business calls "talent fitness"—systematically matching employees' capabilities to the strategic needs of the enterprise. The following five key steps can help increase confidence in an employer's leadership—and help ensure that it has the right talent in place as it emerges from the recession.

1. Make smart cuts quickly. Make selective cuts that can be easily identified. Set criteria for "smart cuts," and then ask leaders throughout the organization to identify positions that meet these criteria. These may include positions in areas where demand or growth has evaporated in the downturn and will not come back.

Before implementing any of these changes, estimate the potential cost savings and benefits of each alternative, including indirect costs such as damage to customer experience, reduced workforce productivity, and increased turnover.

2. Assess capability gaps. Whether or not you're explicitly revising your strategy, identify those businesses and product lines that are potentially most profitable for the long term. Then identify the key capabilities (knowledge, skills, and behaviors) that people will need to keep these businesses going. Finally, assess the capability gap that exists between the talent needed and the talent available. Focus on finding or developing needed skills and knowledge sets.

Assess these skills in light of any process and technology improvements that you're considering. Periodically revisit workforce capability assessments, and make sure recruiting and talent development stay aligned with your strategy.

3. Assess people. Identify high performers who are a good fit with the company's future and core capabilities. Place a higher priority on developing and deploying them. Doing this requires a company-wide selection process, starting with assessments.

Look at the workforce overall, and translate workforce needs into staffing criteria. One approach is to assemble a team to rapidly develop explicit criteria based on skills and relevance to the company's strategy. A relatively simple set of criteria can be pulled together in a matter of weeks. Managers can then review employees based on an assessment of their "fit" relative to the revised business strategy.

4. Develop an effective exit process. Even with a strategy-based approach in place, there's still a danger of laying off the wrong people for the wrong reasons. Managers making individual layoff decisions need guidance. An effective exit process requires an understanding of future requirements and the best ways to separate employees with the least damage to the organization. Managers must be trained and held accountable for decisions about who goes and who stays.

5. Ensure engagement during the change. The greatest damage to employee trust and engagement occurs during times of layoffs. Some companies never manage to fully repair it. By taking certain measures now, leadership can stem cynicism, build greater confidence in the future, and minimize the impact on productivity. Layoff survivors will need to be re-energized and re-engaged.

During layoffs, generously share information—both good and bad news—as soon as it's available. Schedule frequent updates on the state of the company and progress on the new strategy. Online surveys are a powerful tool for checking the pulse of the workforce on trust and engagement issues and surfacing concerns.

The pain of layoffs is probably unavoidable. But if leadership addresses long-standing talent challenges and solidifies its strategic direction, people will know the company took the most viable path for the long run. There's an added incentive to making change during periods of economic turmoil—people are much more willing to acknowledge and accept that change is necessary. Looking back, people will recognize that the suffering was necessary, because the company emerged stronger.