Strategic Issues Discussion ($90M & Under) Facilitated by: - - PowerPoint PPT Presentation

MCUL & Affiliates | 2015 Executive Summit

Strategic Issues Discussion ($90M & Under)

Facilitated by: Renee Werth – VP, Education & Events

MCUL & Affiliates | 2015 Executive Summit

Succession Planning

Duane Aho – CEO/President, Michigan Tech Employees Federal Credit Union

Succession Planning at MTEFCU

• Introduction

Strategic Issues:

• Change to a Sales Culture
• Getting buy in
• Developing a plan
• Training needs
• Update of the C.U.’s Succession Plan.

Keys to success…

Change to a Sales Culture

• Support from top to bottom
• Include the Board in external training, discuss plans with Board Chair, involve

Personnel Committee

• Realize it’s a marathon not a sprint (patience)
• Communications is key…why are we doing this?
• Know your costs
• How will this affect me
• Be committed yourself
• Accountability, measurement, & performance reviews

Reorganization and Succession Planning

• Have the right people in the right seats, be prepared for retirement of key employees
• If there isn’t buy-in or an employee isn’t able, you have to do something
• Have plans for long term, intermediate and immediate events - document or update a

succession plan

• Plan for resources needed to make this happen – budget planning
• What will happen if you don’t execute your plan

MCUL & Affiliates | 2015 Executive Summit

Stronger Lending

Philip Heinlen – CEO, Northwest Consumers Federal Credit Union

What is NWC doing??

We are: 1) Building relationships with our Members. 2) Working with Small Dealerships. 3) Attending Shows. Boat – RV – Home. 4) Attending Chamber Events. 5) Involved in Community Events.

What we have…

We’ve encountered: 1) An increase in referrals from Members 2) More applications from dealerships. 3) An increase in applications from show attendance. 4) Being seen in the community has helped our Branding effort and is helping NWC become the top of mind Financial Institution.

What works and what doesn’t..

• Works:

1) Talking with Members. 2) Plugging into events with the League – the Chamber – the Community. 3) Advertising!!!!! 4) Making it personal!

• Doesn’t work:

1) Waiting for it to come to you. 2) Not networking your events.

Key Recourses

• Our Key Partners have been:

1) Michigan Credit Union League. 1) Business Lending. 2) GPS Loans. 3) CU Link Campaign. 2) CUNA. 3) CU Answers. 4) Members First Mortgage. 5) Alloya. 6) Other Credit Unions.

Board Engagement

• What works for NWC
• 1) Telling them early and often what is needed.
• 2) Having references of other CU’s doing it.
• What hasn’t worked for NWC
• 1) Telling them too much – causing confusion.
• 2) Pushing for an answer right away.
• Every Board is different - do what works for yours.

Top 5 suggestions

• 1) Tell your Story!
• 2) Build Relationships!
• 3) Get involved!! With your Community – CU Legislative issues

– your partners.

• 4) Don’t be afraid to CHANGE!!!!!
• 5) Plug-in to what will help you grow – if you are not sure what

that is, plug into the League they will help!

MCUL & Affiliates | 2015 Executive Summit

Fee Income

Hank Hubbard– CEO, Communicating Arts CU

Fee Income

• We are # 1. How embarrassing.

– $30 million, 10,000 members – 75% members < $500 total savings – 65% members sub 600 credit score

• Gross Interest Income = Non Interest Income
• CP/NSF income 17% greater than net Loan income
• Non interest income is critical to our model

Fee Income

• Top 5 suggestions

– Fee is not a four-letter word – Members don’t always think like you do – People are eager to pay for service – Update your fees

• 1. Price to market, don’t have to be the lowest
• 2. Know your real competition

– Consider new products/options