A Conversation About Culture

In the past couple of weeks, you’ve come to know Thad, a credit union CEO with swagger and the know-how spirit needed to build a strong and effective internal culture. You also learned the “why” – a book that sparked a movement throughout MCT Credit Union called “Thank God Its Monday.” But I wanted to know more… dig a little deeper. Pull up a chair and get that coffee started…

WHAT WAS ONE OF YOUR BIGGEST CHALLENGES OUT OF THE GATE? 

The first year went by like a flash. You want to make change, but not too many too fast. Once the team believed in me as a CEO, things could move faster. I made mistakes. And humbly realized it really didn’t matter what I thought. Some of the teams really weren’t as far along as I hoped in accepting me as CEO. The board took some time. And initially, I took for granted what I did have, which was an outstanding executive team.

HOW DO YOU DEFINE YOUR CEO STYLE WHEN IT COMES TO INTERACTING WITH YOUR TEAM?

I always communicate with my executive team, but more importantly I want them to always communicate with me. I depend on their collaboration and buy-in. If we get to the end of working through a particularly challenging problem, and I know there’s not agreement at the end of the day, then I know we have more work to do, and the matter is not a closed book. If you want to get on my bad side, just agree with everything I say. That’s not practicing the philosophy, that’s just kissing my (you fill in the blank).

HOW DOES THIS STYLE TRANSLATE TO THE INTERACTIONS WITH YOUR FRONTLINE STAFF? 

You can talk about open door policies where staff are encouraged to bring forth ideas, concerns, and suggestions to management – but often it’s just fluff. In the past we talked it, but the staff wasn’t used to putting it into practice. I addressed this quickly, and now, even if a team member needs to vent directly to me that’s okay. I’m glad. Issues, opportunities and new ideas are going to surface. There is nothing that happens in an organization that can’t be addressed. When you don’t act, you not only hurt the credit union, you hurt the employees. You address people directly and handle each issue appropriately.

More of my conversation with Thad next week...

Pop Quiz

HOW CAN YOU MAKE SURE YOUR CREDIT UNION'S INTERNAL CULTURE IS HELPING OTHERS?

BE YOU.

People can usually tell whether you are putting on an act or being genuine. And nobody is better at being you than… well, you! Find what makes your credit union unique, cultivate it, and celebrate it. Help your employees understand this unique story and make it their own.

USE YOUR INSIDE VOICE.

Good internal communication is crucial to the success of your internal culture. It’s the difference between functioning like a herd of cats versus a school of fish. When your employees understand and believe in the culture, their customer service will make sure your members understand and believe too.

SHARE THE LOVE. 

Cultures that recognize the contributions of employees will be stronger, truer, and longer-lasting than cultures where behavior is forced by top-down decrees. If leaders and employees don’t have a strong sense of team, it can undermine your culture very quickly. Employees who feel the love are more likely to inspire similar feelings among your members.

WALK YOUR TALK. 

Remember that actions speak louder than words. Every interaction (no matter how small) is an opportunity to affirm your brand in the eyes of your employees and members. Your brand is a promise you make to your members; your culture is how your employee team lives, breathes, and delivers on that promise.

IT'S A MARATHON, NOT A SPRINT.

Your culture is your credit union’s personality, not its wardrobe. A strong culture endures over time, responding to changes in environment with the steadiness of self-awareness. Evolution is a natural and healthy trait of organizational culture; chasing fads is not. Customers seek long-term relationships with brands they know they can trust throughout the test of time.

Are YOU Connected?

 Gallup has a method of assessing customer loyalty for a variety of industries based on factors that go beyond traditional satisfaction. They ask questions about things like whether or not the brand treats you fairly, delivers on its promise, can be trusted, treats you with a sense of respect, makes you proud; whether you could even imagine a world without the brand. These questions aren’t just about whether or not a customer’s needs are being met; these questions are about connection and passion.

When a member connects with your credit union’s culture, they are more likely to grow into a true loyalist. 

When a member experiences a disconnect with your culture, there’s often an equally high level of negative passion. Who’s usually the make-or-break factor here? You got it: your staff. Whether or not you as a leader have taken the time to understand and shape it, your internal culture is impacting your credit union’s success right now- both internally and externally.

(source for all statistics: CUNA’s 2010 Credit Union Member Satisfaction, Growth and Loyalty report)

Culture Is Everything

“ The thing that I have learned at IBM is that culture is everything.”   - Louis V. Gerstner, Jr. former CEO IBM

Internal culture encompasses the personality of your credit union – what you collectively value, how you do things, your commonly held beliefs and expectations. It manifests itself everywhere: in how your employees treat one another, the care they take in performing their jobs, and the way they treat your members.

 An organization’s senior leadership is directly responsible for defining its culture and typically has a significant influence on the organization's culture- but remember that culture also reflects the collective mindset of employees. When your employees understand and embrace your organization’s culture, it translates into a better and more consistent member experience. Consistently good experiences build trust and loyalty, which in turn build business.

The Credit Union Difference

If you are looking for ways to deepen your relationship (and share of wallet) with members, maybe it’s time to look in the mirror and see how well your employees understand the credit union difference.

FROM THE INSIDE OUT 
Why look internally to improve how your credit union is doing externally? Because when you walk into an organization where employees truly believe in the values and mission statement, you can feel the difference from the moment you walk in the door.  Your members and prospective members can too.

A LOOK INSIDE
One of the keys to developing a strong internal culture is self-awareness: knowing what makes your organization unique in the marketplace, and ensuring your employees embrace that differentiation.
Part of the broader culture shared by all credit unions is a commitment to members and communities that goes beyond providing basic financial services.  One credit union treasurer summed it up well during the Great Depression by describing credit unions as “not for profit, not for charity, but for service.”   While most credit union employees and members understand that credit unions are not-for-profit institutions, many don’t know about the seven cooperative principles that guide how credit unions operate.

Over the next several weeks, we’ll take a look at each of these seven principles from the Credit Union National Association Cooperative Alliances Committee and how understanding them can benefit you.

Front Line Staff: The Key To Your Treasure Chest

Front line staff are the most important employees when it comes to a brand.  TV spots are great because they reach a lot of people.  Facebook, Twitter and other digital media outlets are fantastic because they allow for one-on-one interaction.  But your teller is the most personal and engaging medium that a member will experience with your credit union.  You brand your marketing tactics with a voice, imagery and a feeling that expresses your brand.  Why would you not do the same with your employees?

Easier said than done, right?  It’s actually pretty easy.  Include them, encourage them and empower them.  If you can accomplish that, you will see a higher return on investment, and your credit union will be one that employees love to work at.

IT'S NOT CALCULUS
It’s simple math: Strong internal culture divided among employees equals a better bottom line.  Whether it’s the teller that smiles and cross-sells, or the business development rep that works non-stop to bring in active SEGs and then keeps the relationships strong through good service and a friendly attitude- You need the workforce that’s happy at their job, and brings your credit union success.   As credit unions continue to be champions for their members, a strong internal culture will help you back up your claims of friendly service and financial responsibility because your employees will be champions for your credit union.

GET THEIR INPUT
Your front line staff knows your members.  They know what members like, and what they complain about.  Research is expensive.  It’s always good to have a research firm come in and interview your members, but it’s not always an option.  Don’t forget that your employees are a research tool.  Don’t just give them a medium to express their thoughts and opinions, but listen to their ideas.  If you like it, then try it- make it known whose idea it was.

Just think about how much your front line staff interacts with your members.  They are the first and last impression that every person walking in and out of your credit union will experience.   A collaborative work place is a happy workplace.  Getting your employees to be proud of their work, and giving them a chance to make real change will empower their motivation to breathe your credit union’s brand.

Do Your Employees Think You're "The Man?"

As a credit union, the answer is probably no.  But if you’re not fostering a strong internal communication platform, you might be distancing a staff that directly affects membership growth and retention.

EMBRACE YOUR INTERNAL CULTURE
Your staff is cross-generational- so what’s one thing that your Boomer and Gen Y employees have in common?  They don’t like “The Man” (good thing they work for a credit union).  But do you really communicate your organization’s brand - let alone your credit union difference to them in a way that compels them to embrace your internal culture, and stay with your organization for the long haul?

WORKFORCE WOES
The Boomers are huge.  They are close to 80 million people strong, making it the largest living generation until Gen Y.  So, the early 1970’s brought a large mass of workers as the Boomers turned 25, and began their careers.  This was a terrible time for internal culture because employees became expendable.    By 1975, unemployment had risen from 3.8 percent to 9 percent, so if you wanted a job, you had to put up with “The Man”- meanwhile employers didn’t work hard to keep employees happy.

ENTER GEN X
And then Generation X entered the workforce.    The problem was Gen X only has 67 million members, an 11 percent decrease from the Boomers.   The tide had turned.  Companies fought for the best employees.  Large corporations like Mazda, Google and Microsoft started building internal cultures that harvested opportunity and happiness.  Can you imagine being able to bring your dog to work in the 70’s?

DEJAVU
So here we are- 2011 and the first of Gen Y is entering the workforce.  What do we know about Gen Y?  It’s huge.  It’s estimated that this generation is made up of 100 million people, and they have a median age of around 15.  Does this sound familiar?  It should.  Add in discos and bell bottom jeans and it’s the 70’s all over again.

PICK O’ THE LITTER
Over the next 10 plus years, credit unions- like everyone else- will be able to pick from a large mass of people to fill positions.   With competition being everywhere, you need every member you can get.    There’s a difference between an employee who comes to work, and an employee who comes ready to work.  Happy, long-term employees gain and keep assets inside the credit union.

Don’t repeat the same mistakes made 40 years ago.  Remember that your employees are your moneymakers.   Gen Y will bring some great talent to the workforce, so embrace them and they will embrace your brand.