Weekendavisen
10 Jun 2011
An extremely interesting letter from Barry Neville.

I really didn’t think the social media bunch at the credit union would actually go ahead and produce a video about me, but they did. It is humbling to say the least. But beyond the clip it got me thinking — would this have happened 25 year ago? Would it be allowed to happen now in certain credit unions or businesses?

The transparency, or whatever you want to call it, of social media has made some significant changes in various stratas of society and definitely between various demographics of the citizenry. It has a “no prisoners” approach and no matter how much some would love to stuff the Genie back in the bottle it doesn’t look like it will be returning to the old way anytime soon. This morning the Globe and Mail had an article on how the TV networks and cable companies were complaining about Netflix and that they were not contributing to Canadian content. These were the same guys that were trying a year ago to get out of paying for Canadian content and now they use it as a means to try and stop Netflix. They forget to realize that Netflix offers something they don’t – complete choice of what to watch and when to watch it.

Being part of a financial cooperative that creates a culture that gives staff the ability to produce a clip about their boss for the world to see is extremely satisfying. We can talk about transparency, openess, relationships, empowerment or whatever buzz word you want, the fact remains, people have to be able to do something they see as positive, fun, and an extension of what they do in their everyday lives at work. That’s regenerative. That’s intentional. That’s socially responsible and sustainable. That is this new world emerging as we speak. The byproducts are a healthy and well run credit union.

Thanks gang. And by the way I do leave the toilet seat down. Leaving it up is nothing more than a freudian slip.

One of my favourite people in the credit union movement is Denise. She works for the Credit Union Association of New Mexico and has been associated with credit unions for years. Denise tells it like it is.

Her blog post today does just that. When I began reading it proved interesting from the fact that the 4 minute mile was a record broken in Vancouver during the Empire Games in the ’50s. There was a bronze statue commemorating the run erected at the site and as a kid you always wondered about how magical that moment was. Back then those types of events didn’t seem to happen as often as today so they always seemed magical.

The blog post points to something similar. But many, instead of experiencing that magical moment, will begin to sense a moment of dread. The key to exist as a business in this world is to be aware and be nimble. If you aren’t good at keeping your balance with the winds of change you’ll end up falling a lot. And getting up gets harder to do. Being aware and nimble should give you your greatest advantage which is the use of time. The new iPhone and possible iTunes payment system isn’t hard to see as a concrete possibility. It will be used but it won’t have everything that people will want. Those FIs that understand that and are prepared for change will find they will continue to exist.

I tend to see technology as pure technique. This is just another refined technique to be aware of and to see as a possibility to play to. Don’t forget ‘magic’ is a noun, adjective and verb.

Next week CU Water Cooler Symposium happens in Fishers, Indiana. This symposium has its roots in the Forum Solution Symposium of the past. For me it had been one of the best events in credit union land and next Thursday this new hybrid should establish the CU Water Cooler Symposium as one of the best symposiums ever.

Before anyone attends anything they have probably weighed what it costs versus what they would come to expect from going. Compared to most events here in Canada this event is a bargain. The list of speakers shows people who are working experts and the topics which are near and dear to their hearts. There is no official ‘theme’ but the speakers topics display a large variety of what will presented. How the speakers were chosen, the t-shirt contest, to the type of name tags to be used, shows an open and very workable approach to getting something like this going.

So here are a few of my personal expectations.

1. To be able to re-connect with colleagues. There are a number of people going who I haven’t seen for a few years. Even though you know key events in their lives from twitter, facebook and blogs it is always neat to re-connect face to face.
2. Finally being able to put a face and a voice to some avatar on Twitter. You follow people for years and now you actually get to meet them!
3. Hearing some non-mainstream speakers. Just being able to hear new voices and pertinent topics for a change. So many conferences are almost mainstream in making sure the speakers are vocalizing the ‘flavour of the month’.
4. The debates. If the past is any indication, there should be some lively discussions around just about anything credit union related.
5. Social media is in everyone’s mind and it will be interesting to see where everyone is at, beginner, experience or expert.
6. The last and probably most important. To learn, learn and learn. I never hurts to go with an open mind and act like a sponge.

And don’t forget to make your own name tag!

My good friend Morris over at everythingcu.com cc’ed a tweet to me about a discussion they were having about CUs and Cooperatives. I was reading it and didn’t think there was much to say  until someone writes from the viewpoint that “we need to make money”. That led me to respond.

It does seem a little crazy that whenever the topic of the 7 cooperative principles is brought to light, people will point to what they see as the greatest need –  “to make money” and neglect what the real debate is about. It is like someone asking how you are today and your first statement is “I need to breathe”. Of course we need to breathe but does that end the discussion?

Here is the post.

All the Nikon equipment is getting ready and charged up for the trek downtown. There should be a huge crowd in Vancouver today as the sun is shining and it is a typical winter (but really early spring) day here. Looking outside you begin to think ‘Lawnmover’. This is Canada as was expressed during the opening Olympic ceremonies. Of the 5 of us traveling downtown 2 are born in Canada, 1 is born in Canada but is Irish, another is born in Germany and Canadian and one is born in Denmark and is still Danish. Even amongst one’s friends and relatives you can’t be removed from the Canadian multiculturalism. There is something special about that and I think we finally have told the world we aren’t afraid of celebrating who we are. So Gung Ho Fat Choy 恭 喜 發 財, Happy Valentine’s Day and have a great Olympics, eh?

Over the past few days I have had a number of long discussions with other credit unions and credit union suppliers about where our system is headed and what the challenges are.

First it seems important to realize that though we all call ourselves credit unions there is a difference behind the scenes. There are the large credit unions and the small credit unions. For the most part the size of the credit union is a differentiator in more ways than we might think.

Small credit unions must focus and understand who they are in their marketplace and what they mean to their members. With any organization of limited resources, use of resources must be dictated by need. That use of resources needs to be structured under the credit unions vision both now and for the future. They key to initiate and accomplish the vision is the ability to hold and keep a strong culture based on what I would call the 3 i’s. [Apologies to the Filene Institute for any confusion with their i3 program] Those 3 important i’s are:

Independence. This would mean that the credit union values and maintains its own sense of who it is and how it fits into the cooperative system. It means that by being independent it is accountable and responsible for its own decisions. I think credit unions have become lazy in not attempting to understand vital areas of their operation, specifically technology. They rely on the advice of others and haven’t taken the time to realize the extent and future challenges that may be in store for them when they make decisions about a banking system or switch provider without sound evidence. Knowledge starts first from admitting ones ignorance. The beauty of the credit union system is that most credit unions are willing to share any information if one begins at that humble position.

Innovation. This means keeping a key strategy that smallness brings, the ability to turn on a dime when it comes to creating and producing a product or service. When you see innovation as a strategic weapon you will be amazed at the possibilities available. You turn from the depressing “we can’t do that” to the positive “why can’t we do that”. It is very powerful when your energies are used in developing things your member wants instead of cloning what others already have.

Integrity. No credit union will last when it neglects this aspect of who they are. You cannot operate in a healthy fashion with your members or in the marketplace without this. The trust that you have will disappear when you forsake a culture established on having integrity. Sometimes it can be painful but whatever the loss, the gain is usually magnified by remaining true to who you are.

There are large credit unions that also have these attributes in their culture but because of their size they may not have them woven into their everyday fabric as much as a smaller credit union. Sometimes size diminishes the possibility of such. Small credit unions have less of an internal political life and because of this tend to approach problems differently within the credit union system. You can solve problems easily when the operational issues are solved. It becomes very difficult to finalize anything when politics become so dominant.

I haven’t been a big fan of the Olympics or maybe I should say I haven’t been a big fan of the IOC since the Mexican Games in 1968. (the Plaza de las Tres Culturas was the scene of the Tlatelolco massacre). Why any government or organization puts itself into that type of circumstance is puzzling. Then the IOC’s ban on blogging. The legalism of the IOC has certainly expanded and the only purpose that seems to be apparent is the need to protect the IOC and the corporate sponsor. Lost in all of this is the athletes. We have seen so many articles about everything but the athletes. It is now refreshing to be able to see something different and after tomorrow all of this corporate noise will become secondary.

For those that want the Olympics in their hometown good luck. The end result will be great and most are excited. It took 7 years to get here.

Monday is the day I get off and today is the first day in weeks where nothing, absolutely nothing, was on the calendar as a meeting, appointment, conference call or emerging work to be done. One wonders sometimes what people do on their days off and why it is more important than you think to plan nothing.

When the kids were younger and at home there was always the family time. Home was the revolving center and the noise and energy was its heartbeat. It would be nice to repeat those eventful days. Then the kids move on and one should start thinking of what you plan to do. Sure you can always work. The in-basket and email in-folder is bottomless. Then there are the library of books, too many to count, that would be great to finish. And the list goes on.

It is important that sometimes you don’t need a planned day, that it can be moments of serendipity. Today I found a real great song that will be played dozens of time. There is a kids video “Willy Wonka & the Chocolate Factory” that I need to watch. (that is somewhat work related…) and getting back to reading a bit of ‘The Amazing Adventures of Kavalier & Clay” by Michael Chabon. The sun is also out with the blue sky inviting me to a walk on the mountain. Some say the internet is a time waster. When you start following those items that you have an interest in, I really can’t see that as wasting time. If we had a limited capacity to learn then it could be considered wasting time. So far there haven’t been too many people that have had to shut down their intellectual curiosity for anything other than a lack of time. The best reason of all to be serendipitous are the words of Sandy Denny’s song “Who Knows Where the Time Goes“.

I spent this morning drinking coffee around the kitchen table with 4 young individuals from Oregon and Maine credit unions. It was great to hear their enthusiasm for the credit union system. They had concerns but they also saw that it took work and effort to effect change and help move the credit union system towards some fundamental goals. We compared notes and saw that a lot of our membership comes from referrals from members and people who know about the credit union in the community. That word-of-mouth event is key. There is no manual or how to here. It is plain and simple. The cooperative culture that is set in the branch is noticed by the membership to the point of telling others about the credit union. You can’t can this stuff. It won’t pickle. It just is.

The problem starts when the growth button gets pushed to the detriment of the  cooperative culture. There is a fine line here. Everything will grow. Vegetables grow. You can add fertilizer and whatever else to make them grow bigger and faster but there is a limit. If you push it too hard you vegetable is something else. This seems to be also true for an organization like a credit union. It can grow naturally or you can push it until it becomes something else. I am pretty sure we know what that something else is.

There is a lot of work to consider when growing your credit union. From our discussions this morning I think the next generation of leaders understand what it takes to create a strong and healthy credit union without too much manure.

Finally 2010 has appeared and we are half way through January. My life has been somewhat hectic up to Monday. There was a court case pending (personal) that was adjourned for 5 months pending a mediated settlement. It was interesting to live under the cloud of a 10 day trial only to find that at the 11th hour all parties agreed to a decent 5 point plan. Why we couldn’t have done that a year ago is beyond me. It is nice to have that cloud disappear.

Christmas was good with our oldest son and his wife coming down from Prince Rupert and the youngest from Copenhagen. As soon as we are together it seems we are saying goodbye to each other.

The credit union had another good year. It has always had an ‘organic’ growth capacity of anywhere from 3 to 5%. It may not grow fast but it is growing. What isn’t necessarily measured or shown on a financial statement is probably of a greater benefit. We arrived at the $44 million asset mark with basically the same number of members 1,800. The number of employees has dropped and is now at 10. All of the back office development has paid off with some substantial savings in manpower. What I think this shows is that when you have a strategy and direct your resources to fufill that strategy you may set some timelines that are unreasonable. They may be based on a 12 month calendar which is not necessarily the timeline you will see the benefits. Maybe the timeline will be measured on when the experience level of the staff is on average over 3 years or maybe when the percentage of users of a certain product reaches 25%. One should not forget that the goals you set can move beyond a monthly measurement. We are still part of developing products and with MDI should have a Blackberry, iPhone version of our internet banking product in a little over a month. This mobile version will not have all the features of a desktop browser version but it will have the most popular ones and it should move to cover more features in the future. The next big change will be the transition to chip cards.

I was asked to sit on a provincial credit union committee to establish a future card strategy for credit unions. With the power of the embedded chip we really don’t know what will be in store for us as this new ‘computer on a card’ feature unfolds. And of course 1 Credit Union Conference is in Las Vegas in July. That will be the CU event of the year.

Yesterday I was able to participate along with Morris Partee, Trey Reeme, Robbie Wright and Fred Brown on the CUWaterCooler internet radio show. The one and only problem was it was too short! We just seemed to get going and time ran out. We had some interesting discussions surrounding a variety of topics. Hit the site to hear the session. Congratulations to Matt Davis for starting the project. It is a winner!

Yesterday I was out and about and purchased a gift for the staff. This last year, 2009, has been a little stressful with the economic conditions and redefining some of our jobs. We’ve worked pretty hard, have met or exceeded our targets and are all looking forward to next Saturday’s Christmas party down at the Granville Island Hotel. So what can you do for staff that never seem to take their coffee breaks and are always giving 110%? Buy them a deluxe Royal Professional Saeco Espresso/Cappuccino machine. So far today everyone has had at least one very enjoyable cup. The downside in this is Starbuck’s, they won’t be seeing us very often. And someone said it would be really nice to be able to offer our members a fresh Cappuccino when we are sitting down discussing something with them. That is exactly what I mean about the people who work here — they are always thinking about the members.

At various points in our professional careers be it in business or volunteer work we are called to move a vision or strategy forward. Sometimes it is revitalizing the status quo. Sometimes it is building something from scratch. Rarely is it the creation of something totally new.

There is a difference between building and creating. Before you start on either path you need to know the difference. We tend to think in terms of creating something when we really only have built something. Being truly creative in business is not the norm. One example could be the use of debit cards versus cheques. Another could be the ability of accessing accounts by use of the internet. The concepts were totally different but after the idea came into play the process was built. Was the original idea creative or just a build?

Much of what I see in the marketplace is building on something previous. Sometimes it is the evolution of an older product or service, sometimes it is a greater number of features with a product. What have we seen that is truly creative?

What we need to do is continue the building but also be able to be creative. That means making sure the business has the ability to be creative. Creative concepts truly rejuvenate our entities. When someone says it can’t be done or that isn’t the way to do it, well, that is the time to get creative. We all have the same tools at hand, it is the creativity that usually makes the difference. It isn’t such a science but truly an art. Next time you need to move something forward think about it from this point — is it something I need to build or is it something that possibly could be created.