NASHVILLE—NAFCU President and CEO Dan Berger kicked off the trade association’s 2016 annual meeting Wednesday by sharing four lessons credit unions must follow to succeed—emphasizing the most important is to get moving now to embrace change.
“All across the country, credit unions are telling us that to be successful, you can’t afford to wait. You’ve got to get moving. You’ve got to get out there – now,” Berger said. “A few years ago, former Harvard Business School professor John Kotter, an expert on change management, wrote a book called ‘A Sense of Urgency.’ On the cover was a ticking stopwatch.”
Berger said that in Kotter’s eight-step process for implementing change, the first step is creating a sense of urgency—getting people to actually see and feel the need for change.
“Without urgency, your change effort is doomed,” Berger said. “Urgency, Kotter says, is a state in which complacency is virtually absent.”
Berger shared that in visiting CUs across the country NAFCU has seen four key ways they are driving away complacency and promoting a sense of urgency: “First, dare to stand out. Second, innovate. Third, give your members something to talk about. And last, hustle.”
It Takes Courage
Berger said the first lesson is perhaps one of courage.
“Credit unions showed us that to succeed, you have to dare to stand out. If there’s any fear, credit union CEOs have told us that it’s the fear of being left behind, of not doing enough to excel and better serve members and consumers,” shared Berger. “Think about what it takes to be a success, especially here in Nashville. All those artists who were complete unknowns but are household names today. Musicians with big dreams who dared to stand out.
“Now, think about your credit union. Chances are it was started by a small group of people with a dream and just a few dollars in a shoebox. It may have operated out of a single desk drawer and is now perhaps a billion-dollar institution.”
Berger acknowledged that along the way, there have been growing pains, but today credit unions are thriving.
“We’re breaking new records in membership and loan growth. Our institutions are strong. Our industry is strong. Last year credit union member deposits surpassed the $1-trillion mark,” said Berger.
Berger emphasized that successful CUs have improved because they’ve chosen to take risks. “They dare to stand out.”
Leaders Innovate
Berger said that successful credit unions also innovate.
“That’s the second lesson we learned from our road trips. Credit unions that are leaders in innovation understand that improving the member experience is always the end goal. It is better to be member-centric than number-centric. In today’s market, products and services are not competitive advantages. Relationships are,” he said.
Berger shared several stories about CUs that are innovating, including Arlington Community Federal Credit Union in Falls Church, Va.
“Under the leadership of CEO Karen Rosales, the CU has transformed itself into a modern credit union. They embrace their community and strive for remarkable service in all areas,” said Berger. “The credit union has reshaped its branding strategy and actively targeted Millennials by investing in new technologies. Reaching millennials, says Karen, takes more than just great services and products. It takes building trust and focusing on the credit union’s values of integrity, empathy and community.”
Berger said the $242-million credit union created a new department it calls Efficiency and Innovation, or E and I. The E-and-I team is helping the credit union stay relevant and rethink innovation.
“This small credit union is now offering many cutting-edge products and services that rival those of much larger institutions,” Berger explained.
Time To Talk
Berger said the third lesson is that CUs need to give members something to talk about.
“So, what are your members talking about? With online reviews, social networks and mobile web access, it's easy for your members to know as much about your products and services as you do. They can learn a lot about you online. And they can also rate you online as well,” he reminded.
Berger pointed out that credit union marketing expert Mike Neill said, “If you want that next sale, if you want good word of mouth, and if you want to keep your members, it's unlikely that anything else you do matters more than delivering a superior experience.”
“Member experience correlates to loyalty. But you have to provide good service – all the time and across all delivery channels,” said Berger, emphasizing the importance of embracing an omni-channel approach to member service. “Poor member service equals poor member experiences. And you better believe that those experiences will show up on your Facebook page.”
Hustle To Make Things Happen
Finally, Berger emphasized that credit unions need to “hustle.” Hustle is the art of making things happen, said Berger, adding that hustle, like innovation, is not an accident. It’s intentional.
“I know I’m preaching to the choir. It isn’t easy to push your teams to work harder. Faster. Or better. But because you do, our industry is reaching new heights. All of you that push hard – that hustle – you are the innovators, the credit unions that are committed to making positive changes every single day,” Berger said. “That adds up. Thousands of credit unions across the country are hustling.”
Berger concluded by saying NAFCU has learned from credit unions that if “we stop growing, if we sit on our capital, if we don’t innovate, if we lose touch with members and forget our mission, we’re inviting trouble . . . You have a better mousetrap. You have a better culture. You’re built to last, and we must tell that story. We must hustle to get that story out—the clock is ticking.