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T H E O N LY ALL-BUSINESS RES OUR CE FOR B ANKS AND CR ED IT UNION B R ANCHE S
T H E O P E R AT I O N S I S S U E
MARCH 2018 | VOLUME 1 | ISSUE 3
Growing Great Branches
KAITLIN MORRISON
Featured
Community First Credit Union
Fleming Island Branch
TABLE OF CONTENTS MARCH 2018
T H E ONLY ALL-BUSINESS RESO U RCE FOR BA N K S A N D C RE DIT U N IO N BRA N C HE S
7 EDITORS POV
Growing Great Branches
22 IN-BRANCH PRODUCT SALES
How “The 7 Habits” Can Make Your Sales
Kaitlin Morrison Teams Highly Effective
8
Nick Brown
CUSTOMER SERVICE
Dealing with Today’s Banking Customers
or How to Get Some Sleep
26 LENDING SOLUTIONS
Sales or Service
Roy Urrico Are Your Branches Prepared for the Future?
13
Scot Vackar
BRANCH TRAINING
CU Training Q&A 30 BUSINESS LENDING
Ken Gonyers Creating a Better Member Experience through
Cross-Selling
17 BRANCH STRATEGIES
Ten Workforce Management Mistakes in
Ryal Tayloe
Credit Unions Today
35 BRANCH STRATEGIES
Chad Davis The Perfect Universal Associate Branch
Recipe
20 COLLECTIONS
Four Tips to Create a Strategic Collections
Meredith Deen
Process
37 BRANCH TRAINING
Steve Balmer
Training to Keep Top Talent
Ken Gonyers
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ABOUT US
T HE ONLY ALL-BUSINESS RESO U RC E F O R BA N K S A N D C RE DIT U N IO N BRA N C HE S
PUBLISHING TEAM
Tim O’Hara, Publisher
tim@cubusiness.com T HE ON LY ALL-BUSINESS RE SOURCE F OR BAN KS AN D CRE DIT UN ION BRAN CHE S
T H E O P E R AT I O N S I S S U E
Kaitlin Morrison, Editorial Director MARCH 2018 | VOLUME 1 | ISSUE 3
kaitlin@cubusiness.com Growing Great Branches
Ashok Kumar, Associate Publisher KAITLIN MORRISON
ashok@cubusiness.com
Patti Manzone, Designer
BRANCH BUSINESS TEAM
Steve Balmer
Nick Brown
Chad Davis
Featured
Community First Credit Union
Meredith Deen Fleming Island Branch
Ken Gonyers
Ryal Tayloe
SUBSCRIPTIONS
Roy Urrico Credit Union BUSINESS is published monthly
(12 issues per year) by CU Business Magazine,
Scot Vackar Inc. A one-year Digital membership is $75/yr
An online membership form is available at
www.cubusiness.com/register.
TEAMBUILDER
https://creditunionbusiness.com/the-team-
builder/
SALES AND ADVERTISING
Tim O’Hara, Publisher
tim@cubusiness.com or 561-282-6015 #1
CONTACT INFORMATION
Credit Union BUSINESS Magazine
P.O. Box 2223, Palm Beach, FL 33480
(561) 282-6015 | (561) 588-7711 (fax)
tim@cubusiness.com
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BY KAITLIN MORRISON
TAB
POV
Growing Great Branches
W
elcome to the sounds of Spring! —In “Branch Training: Q&A,” Ken Gonyer gives
Outside my office, I can see daffodils us a glimpse into what PVFCU does to help their
coming up again and reaching out teams thrive. It’s an excellent primer.
towards the sun. Each year in March,
they consistently grow and thrive in —Reading Scot Vackar’s “Sales or Service - Are
the warmer weather and the sun’s bright and cheery Your Branches Prepared for the Future?”, we find
glow. It’s awesome to see. Last year, we planted insightful help for branches looking to boost their
these flowers and gave them everything they’d need sales by getting their tellers and member service
to thrive: plenty of space, great soil, water and (of representatives on board.
course!) sunshine. This year, they were strong enough
to come back on their own without much assistance. There’s so much more in this issue, so I hope you enjoy
Sometimes, flowers are like that. They may need it. We’re trying to offer more useful information and
occasional watering now and then, but generally insights you can use.
speaking, they’re ready to shine on their own. Speaking of offering more, we’ve had a really great
Just like March daffodils, great teams are response for our new LinkedIn Group, “Bank and CU
intentionally planted. Before they have everything BRANCHES.” I hope you’ll check it out and join-in
they need to thrive, they need support and training on the discussions. The response to our group and new
from their organizations. Your branch needs your (revamped) website have been so strong lately that
intentional guidance through changing environments, we’re having to work even harder to keep up. Thanks
just like those flowers do! You can’t just assume your for your suggestions and interest--keep it coming.
team will always “grow back” without a little help and We’re listening. If you have an idea for our magazine,
support from you, the branch manager. website or LinkedIn page, I hope you’ll email me at
In this issue, we’re tackling challenges that member kaitlin@branchbusiness.us.
service representatives face in their everyday jobs and Our website contest is still accepting entries.
interactions with members at your branch. In a sense, The winner will receive an upcoming feature and
the different components of what teams need to thrive recognition in a future issue. To enter, just join our
make up a “teller toolkit.” LinkedIn group and post a link to your site, along with
Here’s a preview of what you’ll find in the pages why you think it deserves to win. Just a fun way we’re
of this month’s Branch BUSINESS: going to recognize great websites from our readers!
—Roy Urrico’s “Branching Out: Dealing with For Branches,
Today’s Banking Customers or How to Get Some Kaitlin
Sleep” serves as a good reminder that branch teams Editor, Branch BUSINESS
really need to stick with service--ignore member kaitlin@branchbusiness.us
service at your own peril! Unfortunately, many a
good organization has failed at this.
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FEATU RED BY MARIA COPPOLA
BRA NC H
Community First Credit Union Opens
New Fleming Island Branch
Credit Union relocates banking center to freestanding location at
C
Island Walk North
ommunity First Credit Union, a full-
service credit union based in Jacksonville
with membership open to anyone who
lives on the First Coast, has opened its
newly built Fleming Island branch at
2004 East West Parkway. The branch replaces the
former retail location at 1545 County Road 220. The
freestanding branch is in front of the newly opened
Fresh Market on a parcel Community First owns.
The opening is part of the credit union’s Branch
Transformation Project, the institution’s most
The interior design features modern bright colors,
furniture and finishes along with a mix of carpet and
aggressive and comprehensive branch and facilities
solid flooring and surfaces. The interior also features
upgrade and update in its history, which seeks to align
physical branch locations with modern banking needs
a relaxation zone, interactive tablets, transaction
and customer uses. The Fleming Island Branch is on
counters without barriers, a digital community board
a corner with more parking as well as a full-service
and other technology-based solutions. The branch
drive-thru and drive-up ATM. Community First has
experience includes full- and self-service and assisted
more than 5,000 members in Fleming Island who use
service options through a discovery bar and interactive
this branch for their daily and weekly banking.
kiosks along with traditional teller service. Specialized
financial experts are instantly available through
“We are proud to serve our Fleming Island
members with this brand-new branch,” said John
the credit union’s Expert Nearby solution, which
Hirabayashi, CEO and president of Community First.
gives members instant access to a member service
“This location provides convenience and an enhanced
representative for help with consumer loans, mortgages
experience in modern, in-person banking.”
and other specialized services.
Construction took approximately seven months
and is 3,360 square feet. The number of branch
employees remains the same for the new location.
DBSI, a nationwide leader in banking and credit union
branch transformations, designed and built the new
branch.
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FEATURED BRANCH
The branch also has a distinctive cylindrical glass Community First Credit Union of Florida is a state-
tower, one of the credit union’s signature exterior chartered credit union based in Jacksonville serving
features in its newly constructed branches. The tower’s anyone who lives or works on the First Coast.
interior will serve as a community room available for Community First is one of the 10 largest credit unions
use by local organizations and businesses. in the state, serving more than 126,000 members
In addition to opening the Fleming Island Branch, and with assets of $1.5 billion. Community First has
the credit union has recently launched construction 18 locations and 300 employees. A not-for-profit,
of a new, expansion branch at Oakleaf Plantation and Community First is a full-service financial institution
has started the renovation of its Jacksonville Beach offering banking, loans, mortgages and investments for
location. consumers and businesses throughout the First Coast.
For more information visit www.communityfirstfl.org.
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CUS TO MER BY ROY URRICO
SERVI C E
Dealing with Today’s Banking
Customers
or How to Get Some Sleep
N
ot too long ago financial institutions investments in new systems, training and coming to
dictated when to perform financial grips with ROI. Plus branches are now more expensive
transactions through their 9-3 branch to operate on a per transaction basis.
hours. Of course, the branch environment For many others branch supervisors the challenges
has changed dramatically in the past involve meeting staffing needs and satisfying member
decade and will continue to change in the years ahead. service concerns.
With the adoption of the Internet, mobile technologies,
e-payments and social media, accountholders are Still Comes Down To Service
shifting quickly from the brick and mortar world What has not changed at all it that everything on any
to the digital world. Credit unions, as usual, eagerly channel still revolves around the accountholder and
accepted the challenge of multichannel delivery by fortunately many financial institutions understand that.
diligently developing robust channels. The fear is that There is much not to like about banks according
as branches have become less important to numerous to recent surveys. No doubt financial institutions
consumers who are more frequently choosing these worldwide have taken a thumping in terms of
alternate channels to do their regular transactions there undesirable publicity in recent years following the
is now a major disconnect with members. In addition, 2008 financial crisis. Frequently disparaged for their
with all the channels now in play to satisfy member shortcomings, retail banks receive constant reminders
convenience demands, are branches still relevant? The that they are unliked and untrusted. However some
answer is yes; branches are still the face of financial recent surveys indicate that the news might be worse
institutions for many significant financial life events.
Branches remain the method consumers prefer for
opening new accounts, mortgages, refinances, personal
loans, insurance and investments. Research also
suggests that the branch remains the primary driver of
account satisfaction and brand identity.
This does not make the job of running a branch
any easier. The challenges for branch managers have
never been greater. What keeps branch supervisors up
at night? For Donna Fain of Pioneer FCU her concerns
center on meeting financial goals, training and keeping
up with technology. The reason for those sleepless
nights are items inherent with new technology such as
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CUSTOMER SERVICE
Customer opinions, across seven
industries, came from 75,000
surveys during Q1-Q3 of 2013
and analyzed using the ForeSee
methodology. The report
features data that is predictive
of future consumer behaviors
for American Express, Apple,
Amazon, Coca-Cola, Cisco,
Facebook, Gillette, Honda,
Google, Microsoft, Morgan
Stanley, Oracle and more. The
best-performing company out of
the 100 surveyed was Amazon.
than anticipated, as service at banks is deficient. In com, with a satisfaction score of 87; while one new
fact, the financial service industry as a whole needs financial institution scored 65 to put it dead last. While
the most assistance of any industry in customer service Amazon dominates the retail industry at the brand
according to the surveys. level (87), Nordstrom (86), Coach (85), Costco (84)
For instance, GMC Software, gauged customer and Tiffany (84) are statistically within reach of the
opinion of retail banks with a survey questioning leader. For financial services, American Express (82)
4,032 consumers across the UK, Germany, France leads MasterCard (76) by six points.
and the U.S. The report, The End of the Banking Industry comparison shows highest customer
Autocracy, advised retail financial institutions to satisfaction in Automotive and Consumer Package
utilize technology better to offer a 24x7 cross-channel Goods (CPG). Looking closer, ForeSee found that the
service. Nevertheless, even with better technology Automotive and CPG (Consumer Packaged Goods)
fulfilling service satisfaction needs must come with industries score highest (tied at 82) followed by Retail
more human contact. & Apparel (81) and Technology & Electronics (80).
Another survey by ForeSee revealed that as a group, The Financial Services category registers at the bottom
the financial services industry earned ominous service of the scale with an average score of 75. Financial
marks, with an average score of 75 out of 100 points — Services also displayed the largest gap between the
the worst scores of any industry measured, including highest and lowest scoring brands within a category.
automotive, retail and apparel, and technology and Add to that the reality, per the Foresee report, that
electronics. with new technologies that facilitate connectivity,
ForeSee’s survey factored in not just consumer expectations increased for all businesses.
accountholders’ overall experiences with a business, Retail financial institutions must perform some heavy
such as a financial institution. The survey quantified lifting, given the high expectations from consumers
customer experience by calculating satisfaction scores used to exceptional service at other retail outlets. Like
for each of the 100 brands on a 100-point scale, as it or not, in today’s totally connected world service is
well as three key measurements that are predictive of measured against companies like Amazon.
future behavior – retention, upsell and recommend.
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CUSTOMER SERVICE
According to the 2013 Credit Union Satisfaction Index are looking to “big data,” collecting and analyzing
from technology and analytic firm CFI Group, credit a wide variety of consumer information through
unions scored more than 80 points on a 100-point scale interconnected systems that update across channels in
in several areas based on responses from 400 members real time.
from across the U.S. Branch convenience, branch staff, BankThink launched a new series in which
online banking and communication were key reasons consumers from dissimilar demographics expressed
why members said they were satisfied with their credit what they are looking for from their financial services
unions. providers. Responses varied widely, as you might
expect. One respondent wanted faster person-to-
What Consumers Really Want…Contact person payments, while another wanted a return to
The solution to the retail banking customer service old-school banking. A Baby Boomer accepted the
issue is not entirely technological. A Diebold report appeal of mobile banking, but still wanted exceptional
strongly suggested that a friendly, knowledgeable staff, transactions to start and end with a handshake. Three
which falls right in most credit unions’ sweet spot, students requested good customer service, voluntary
remains one of the most important factors contributing overdraft notifications and community outreach,
towards the public’s assessment of a good service or respectively.
otherwise, and its impact cannot be underestimated: Obviously financial institutions sense a mounting
the human factor matters. Today’s accountholders pressure to deliver a superior experience nowadays.
want more from their financial institutions. They It is up to the financial institutions to decide if they
anticipate a professional, skilled branch staff enabled wish to adapt to the changing landscape or leave the
with technology that delivers a personalized, secure future to the more flexible rival newcomers that are
and convenient experience. Most financial institutions already rushing to engage customers and respond
recognize that they need to make changes to meet these appropriately. Banks, and to a lesser extent, credit
consumer expectations. This is particularly true in their unions, must admit there is a problem and center on
branches. salvaging trust and become the trusted advisor once
Consumers want a more personalized banking again. Delivering superior service becomes valuable to
experience from the teller line to self-service channels, the financial institution when it generates more income
including mobile, online and ATM channels. The
Diebold study reveals customers want financial
institutions to remember their individual preferences,
regardless of which channel they use to conduct
TURN ON YOUR
banking. And they want their experiences catered BRANCH SUPERVISORS
specifically to those preferences. For example, if a & MANAGERS
consumer declines a specific marketing offer at one
channel, the accountholder does not want that same
withTEAMBUILDER.
offer at another channel. Many times, accountholders
walk into a branch, call or login online only to receive
4 BRANCH
the same cross-sale pitch each time. To achieve this BUSINESS
level of personalized service, financial institutions
www.cubusiness.com/teambuilder/buy
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+ 92 Million Members
= 100 Million Miracles
Since 1996, Credit Unions for Kids has raised more than $100 million for Children’s Miracle
Network Hospitals, giving hope and healing to kids in your local community.
YOUR FUNDRAISING DOLLARS IN ACTION:
$ 10
MILLION
1 iMRI machine and surgical suite
$
MILLION
2 1 Cardiac X-ray machine
$ 270
THOUSAND
1 Ultrasound machine
$250
THOUSAND
1 Bone marrow transplant
$ 100
THOUSAND
1 Fully-equipped Giraffe OmiBed incubatorTAB
CUSTOMER SERVICE
for the financial institution or builds a more devoted That is why it is not surprising that not only did credit
accountholder relationship. unions score consistently higher than banks across the
board in six areas that drive consumer satisfaction,
according to the CUSI study, but the survey in looking
at penetration of products and services among members,
found checking and savings products each accounting
for 94 percent penetration, and debit cards, 73 percent.
Other products have 30 percent or less penetration.
Even more important, anywhere members choose to
interact with your organization matters. Therefore it
is more important that every interaction with members
is rewarding for both parties. Especially since all
locations take on more responsibility in today’s selling
atmosphere.
The desire to implement innovative technology is
not a replacement for face-to-face interaction with Roy Urrico is a freelance
competent staff. Accountholder demands reflect the ghostwriter and
world we live in today. This translates to nontraditional byline writer of books,
interaction; personalized service and 24x7 reach. articles, newsletters,
Yet, the option of speaking to a real member-service guides, case studies
representative should always be there at realistic (and and white papers about
maybe unlikely) hours of the day. The fact of the matter financial institutions,
is that although consumers are in general comfortable financial technology,
using technology for the majority of their banking compliance, information
transactions they still crave handholding and access to security, credit and collections, foreign exchange
knowledgeable representatives when it comes to more and many other financial topics. To find out more
strategic transactions. about how Roy can help your organization check
out Roy’s profile on LinkedIn, visit his Web site
at brightideaswriting.com or email him at roy@
brightideaswriting.com.
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TRA I NING
CU Training Q&A
O
ur culture seems to love reality TV
because we’re fascinated with the inside
story of everything and everyone. While
there may never be a reality show about
branches, CU and bank leaders can benefit
from taking a look at how other organizations conduct
business. This CU Training Q&A is your backstage
pass to the training department at Park View Federal
Credit Union, a $125 million multiple common bond
credit union in Harrisonburg, VA. PVFCU has 50 full
time employees in four branches. We have no full-
time training staff, but several employees coordinate
training part-tim
CUB: What do you hope your training program will
accomplish? CUB: How do you get your employees interested in
PVFCU: We want to give our staff the training resources learning?
they need to be able to perform all aspects of their PVFCU: One of the key motivators is simply an
jobs with confidence and skill, which means that they employee’s need to “keep up.” Anyone working in
need to know all the procedural nuts and bolts of their a financial institution knows that change is the only
jobs as well as the policies behind the methodology. constant and that means staff members are always
By knowing both procedure and policy—the what learning something new just to remain competent.
and whys of their jobs—they’ll be ideally prepared to
interact with members knowledgeably and efficiently. While monetary incentives seem to energize our
Beyond the basics, we want our staff to get whatever employees’ interest in learning, we don’t have to work
specialized training their positions demand along with very hard to get employees interested in training. In
continuing education to keep them up-to-date and to fact, a lot of the material we offer is in response to staff
make sure our management team gets best practices requests. Non-mandatory class attendance sometimes
training in supervision and leadership. We want to exceeds fifty percent of the staff. They relish the
create a culture in which employees are constantly opportunity to learn more.
growing and learning and whose skills are continually To help motivated employees who want to move
developed and honed. beyond competency, we offer a clear, self-guided
progression plan that defines the learning objectives
and coursework required for promotion. We’ve linked
educational achievements with the employee salary
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TAB TRAINING
scale and a pay increase is available to those who information about products, services, processes, rules
earn certification as a financial coach or specialist in and regulations. Employees from every department are
marketing, human resources, compliance or lending, encouraged to participate in these courses.
among others. They must keep their certification up-to-
date to keep the wage increase. Smaller cash awards are Students must pass a course exam to receive credit
given when an employee completes a certain number toward certificates and cash awards. Co-workers, who
of in-house cross-training courses. are experts in the subject matter by virtue of their
daily work, teach the one-hour Knowledge Builder
CUB: What kind of training are your employees asking sessions. A loan officer, for example, teaches a class
for? on how to read a credit report. This not only ensures
We periodically survey departments looking for that the content is relevant, it gives the instructors an
training needs to satisfy and find that employees opportunity to develop their organizational, leadership
routinely ask for refresher training in the more complex and presentation skills. The member services staff is
aspects of their jobs and skills training to improve expected to teach a Knowledge Builder as part of their
their performance. There is always a great demand for progression plan.
training in new technologies such as in the hardware
and software used on the job or in any new electronic We offer two-hour “workshops” that are designed
service being offered to members. to deliver more material and in-class group work.
Workshop subjects include financial coaching,
Our staff shows a high level of interest in understanding improving accuracy, and enhancing people skills and
the whole spectrum of financial services offered by are offered once each quarter. Enrollment is voluntary
the credit union. While they aren’t asking to be cross- and employees attend with the permission of their
trained in every department, they want to have a basic supervisor.
knowledge of all the products, services, and processes
our CU offers. They’ve also asked to learn how to We offer “academies” that provide intensive classroom
interpret and understand the organization’s financial training that includes demonstrations, practice and role-
ratios, performance, and management of assets and play. An academy’s content is specific, detailed and
liabilities. targeted toward complex procedures. They typically
last between a half or full day and are team-taught by
CUB: What does training look like at PVFCU? managers to smaller groups of employees.
The majority of our training is done in-house, but we
also provide staff with access to online education, Intensive one-on-one training works best for teaching
national conferences, college classes, and professional basic job skills such as how to use equipment or
development clubs. In-house educational options are perform transactions. The learner begins by observing,
delivered in a variety of ways including classroom then works side-by-side with a trainer for several days
training, one-on-one teaching, independent study, and until they are competent enough to work alone.
invited speakers.
Along with one-on-one training, independent study
We offer twelve to fifteen “Knowledge Builder” gives employees an ideal opportunity to practice
classes throughout the year to provide general what they’ve learned using mock workstations and
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TAB
dummy data. After several practice sessions, employee Online training is another way employees can build
confidence rises and they become more comfortable their knowledge and skill sets. Web-based courses
performing tasks in real work settings. provide a flexible educational channel that staff can
access when and where they choose. This venue works
Several times per year we invite outside speakers to very well for mandated annual training and to fulfill
address our workforce as part of our in-house training the continuing education requirements necessary for
program. These professional trainers present up-to-date maintaining certification and licensure. The abundance
material in complex subject areas such as harassment of fresh and relevant content delivered by national
prevention and response, the Bank Secrecy Act, and experts is one of the major benefits of online training.
disaster preparedness. This year our employees have access to 103 webinars
related to regulations and compliance alone.
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Like many other credit unions, we earmark significant CUB: What training has worked particularly well?
funds for conferences and travel and offer college Peer-led training has had extraordinary benefits. We’ve
tuition reimbursement. We actively encourage our found that the material presented is more relevant
employees to participate in professional development when staff experts teach and student response is
clubs like Toastmasters International. generally more positive. Because so many employees
are involved in our “Knowledge Builder” classes and
Involvement in the Toastmasters communication and co-workers are depending on the teachers to do a
leadership program has greatly improved the people good job, there is a high degree of ownership in the
and presentation skills, of our employees while training. A side benefit of peer-led training is increased
encouraging their overall professionalism. collaboration. Staff teachers unite employees from
different departments into groups and get them working
CUB: What are some of your biggest training toward a common goal. As these groups work together
challenges? and build relationships, they become a team, which
The most challenging aspect of training is keeping up improves cross-department communication, develops
with the ever-changing array of products, processes, camaraderie, and boosts morale.
and regulations. We had to develop systems for
alerting employees of all upcoming changes and Ken Gonyer serves on
instructing them in how to implement new processes. the executive team at
Additionally, we needed to create and maintain good- Park View Federal Credit
quality documentation. At PVFCU, we use internal Union in Harrisonburg,
newsletters for retail departments, marketing, etc. VA, overseeing member
along with a weekly “ten-minute meeting” to help keep care. He is a member
staff informed of changes. We invest significant time of the American
to produce detailed procedure manuals, cheat sheets, Society for Training &
and FAQ resource documents. Development (ASTD) and
the International Association of Coaching (IAC).
CUB: What kinds of training haven’t worked well? The Virginia Credit Union League hosted his recent
We’ve learned to be highly selective about what “Train the Trainer” workshop. Contact him at www.
outside resources we make available to our employees. kengonyer.com.
Occasionally, we’ve been disappointed in the cost
and quality of some of the educational material
we purchased from trade associations and national
training organizations. We’ve also discovered several
ineffective training seminars and conferences. Still,
doing all of our training in house simply doesn’t work.
We recognize that we need outside resources and have
learned to research available options carefully before
investing large amounts of money and staff time.
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ST RATEG I ES
Ten Workforce Management Mistakes
in Credit Unions Today
E
very financial institution focuses on on existing and prospective customers in their homes
workforce management to help optimize and businesses. And managers can more efficiently
delivery of its products and services while manage scheduling and staff assignments when they
operating as cost-efficiently as possible. are not tethered to the back office adjusting schedules,
Widely available solutions can bring together reviewing time sheets, and accessing reports on their
the resources to achieve that balance, from navigating desktop computers. Whether they are at the main
complex labor laws to recognizing top performers office or traveling from branch to branch, managers
and putting their talents to work where they are most can keep pace with updating schedules, reviewing
needed. This initiative is especially important in the reports, approving time-off requests, and monitoring
branch, where properly engage frontline staff can have performance metrics.
a huge impact on service and sales.
A newly released white paper from Kronos, Optimizing schedules—and sticking to them
titled “Top Ten Workforce Management Mistakes Automated workforce management tools provide a
in Financial Services,” offers recommendations to wealth of data to improve branch traffic forecasting
overcome those drawbacks in a way that improves and scheduling so that the right people are in the right
organizational performance and business outcomes. place at the right time, the white paper notes. Note
Applying the best practices offered to counteract that “optimized schedules” don’t translate to bare-
the top ten mistakes, can simultaneously streamline bones staffing that leads to employee burnout and high
the many processes involved in positioning full- and turnover, but rather schedules that meets accountholder
part-time staff across branch networks and engage expectations for prompt service without increasing
employees in fulfilling routine, but important, tasks. employee idle time when branch traffic regularly
tapers off.
Supporting HR management on the move Replacing manual and partially automated systems
Advances in digital workforce management tools allow
staff and managers to use the same kinds of technology
they use in their personal lives—namely, their
smartphones—to drive communication, efficiency, and TURN ON YOUR
convenience in the workplace. By investing in systems
facilitating easy access, employers can equip staff with TRAINERS
an easy way to punch in and out, submit timesheets,
request leave or time off, and view schedules from
withTEAMBUILDER.
their mobile devices.
Mobile access to work schedules, HR information, 4 CU
and other notifications can also benefit financial
professionals stationed at multiple branches or calling
TRAINING
www.cubusiness.com/teambuilder/buy
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put in place over time with uniform digital solutions in real time,” the white paper suggests. “This visibility
can ease employee and manager frustrations, increase allows managers to make more informed business
productivity, improve morale, and enhance external decisions in the moment—from reallocating frontline
service across channels and internal services between employees to meet higher than expected demand to
employees and among business units. adjusting agent schedules in order to avoid unnecessary
Planned and unplanned paid time off adds to the overtime in the contact center.”
complexity of developing and sticking to optimal To maximize efficiency gains across the
scheduling. According to a SHRM survey the total organization, financial institutions should consider
direct costs of employee PTO are about 15.4 percent of workforce solutions that integrate with existing payroll,
payroll, which rises above 20 percent with the addition finance, or ERP systems to connect HR information
of indirect costs associated with lost productivity. to other business metrics. A data-driven approach to
Applying technology to manage PTO can help workforce management supports a proactive approach
ensure that absence and leave policies are adhered to to both day-to-day operational decision making and
consistently and accurately and in a way that reduces long-term strategic planning. How can scheduling
the impact on labor costs and productivity. Employees practices be fine-tuned to meet sales and service goals
value paid time off and job-protected leave and expect cost-effectively? How can onboarding and training be
those benefits to be administered fairly and equitably. improved to enhance job performance and retention?
Schedules designed to support sales and service How will the future labor force differ from today’s
goals and reduce idle time only work when employees employees in terms of range of responsibilities and
adhere to them. Automating time and attendance desirable skills and attributes? The business intelligence
reporting can aid in monitoring compliance and hidden in disconnected systems may hold the answers
quantifying the impact of new scheduling practices. to those crucial questions.
By evaluating service and productivity metrics through
the application of sophisticated analytics, managers Putting your best staff forward
can measure the impact of digital workforce systems “When exceptional service really counts, you want to
and scheduling strategies and make changes where put your strongest performers where they will have
indicated. the most impact on sales and service,” the white paper
emphasizes. “But if you are not tracking the right
Ferreting out inefficiencies through integration metrics, you may not know which employees you can
Nothing perpetuates unnecessary costs and lost count on to consistently drive business goals.”
opportunities to improve service and productivity Performance analytics solutions track useful
like a hodge-podge of manual and semi-automated workforce metrics, such as transactions per staff hour
HR systems put in place through the years and worked or labor costs per transaction in a branch, to
across various departments. A piecemeal approach measure individual productivity and effectiveness.
to monitoring compliance with ever-changing labor Managers can apply those insights by scheduling top
regulations may pile on top of these inefficiencies— performers with the right skills where and when they
and put the financial institution at higher risk of costly are needed.
violations. Recognizing high-performing staff for their
Integration can stem these operational, contributions and showcasing their talents prominently
management, and regulatory weaknesses. “Unified may also aid in retention, which in terms increases
workforce solutions provide a holistic view by customer loyalty and fuels growth by wielding a
integrating HR, time and attendance, scheduling, and “customer-first” workforce as a key differentiator in a
more to create a single employee record that is updated fiercely competitive business sector. Toward that end,
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another useful element of automated workforce systems Chad Davisis senior industry
is the ability to measure employee satisfaction and aid marketing manager, Financial
in identifying what workplace practices and policies Services Practice Group, Kronos,
deliver on their expectations for a good place to work. which is a leading provider of
This strategy circles back around to employees’ affinity workforce management and
for HR systems powered by state-of-the-art technology. human capital management cloud
Managing a diverse financial services workforce is a
solutions. Kronos’ industry-
complex undertaking that can cross the line into service
centric workforce applications
and productivity setbacks when organizations persist
are purpose-built for financial institutions of all sizes.
in using multiple, siloed manual and semi-automated
processes. As the white paper concludes, financial He can be reached at chad.davis@kronos.com.
institutions that augment workforce management with
advanced tools and integrated systems gain “real-
time visibility and data-driven insights to effectively
control labor costs, improve productivity, minimize
compliance risk, and drive employee engagement.”
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Four Tips to Create a Strategic
Collections Process
I
t is safe to say that most of the general population
wants to pay its bills on time. However, as anyone
in the payments industry knows, this does not
always happen as planned. Having a system in
place that makes it easy for consumers to do the
right thing will benefit all parties in the long term. An
intentional and efficient strategic collections system
can be a tremendous benefit to your credit union.
As technology continues to advance, the task of
collections becomes more complex. The Telephone
Consumer Protection Act (TCPA) restricts the making Find ways to make the member comfortable. Once you
of telemarketing calls and use of automatic telephone get the member on the phone, one way to do this is
dialing systems and artificial or prerecorded voice and through authentication. Asking security questions will
text messages. Compliance with collections legislation assure them you are calling from a legitimate source,
is key, and the technology used to perform collections ultimately making them feel better about disclosing
is crucial. Third-party data systems allow collectors to personal information. A call from a collections agent
filter the dialing structure, become more efficient with can be stressful, but making sure the member knows
query capabilities and ultimately impact delinquency your true intentions will yield better results.
rates by changing up the messaging. With the increased Identify yourself as the branch and not a collections
use of cell phones and decreased use of landlines, agency. Introduce yourself as a representative of their
reaching consumers of certain demographics is more credit union or bank. This approach will make them
difficult and more expensive than ever before. more comfortable and less defensive when answering
questions about their delinquencies.
When formulating your organization’s collections Incorporate advanced technology.Making your
strategy, keep the following tips in mind: collections process easy for the member to understand
Limit the use of an automated voice messaging system. goes hand in hand with the type of technology your
Members tend to be surprised when they answer the organization chooses to utilize. For example, increasing
phone and hear a live person on the other end, since the connect rate with members can be done with
most collections calls are automated. Having a live changes to the caller ID system. PSCU is beginning to
representative makes members feel more comfortable movetowards having the credit union’s name show up
asking questions, and it is easier to find solutions for on the caller ID so members recognize the name and
outstanding payments when you can work together as are more inclined to answer the phone.
a team.
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Measuring results is equally as important to the success of the member they are trying to reach,in order to
(or failure) of your collections strategy as having a optimize connect rates.
robust collections process. Credit unions and banks
Conversion – A conversion can have multiple
should measure traditional metrics, including:
outcomes,including a member making an appointment
Penetration – Measure how many times a single to discuss the delinquent charges or actually collecting
representative is calling a delinquent member. It is the debt owed. When creating your collections
recommended that amember be called anywhere from strategy, outlining clear objectives will help the data
10 to 15 times per month. analysis process run smoothly so that results can truly
be measured.
Right Party Connect Rate – This number refers
PSCU has excelled in the collections space by
to how many times the representative is able to get
shattering the traditional notion of a “telemarketer” or
the “right party,” or decision maker, on the phone.
collections agent. Having a streamlined and efficient
Representatives should be strategic with the time of
collections process allows PSCU to significantly
day they are calling, depending on the demographic
reduce its Member-Owner delinquency rates.Each
dollar collected has an impact on
the bottom line of the credit union.
Rehabilitating delinquent members’
debts early in the collection process
allows members to continue in good
standing and remain profitable for the
credit union.
Creating a strategic collections
plan and diligently measuring the
results will provide your bank or
credit union with the tools needed to
improve delinquency rates and create
a more enjoyable member experience.
Steve Balmerhas been with PSCU
since 2007. He provides management
and leadership support to the Fraud
Recovery, Dispute and Collections
Operations departments. Steve utilizes
outbound technologies, third-party
vendors and manual efforts to handle
collections for over 40 clients.
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PRODU C T S A L E S
How “The 7 Habits” Can Make Your
Sales Teams Highly Effective
R
ecently my parents gave me a few boxes
of “memories”I apparently still had stored
in their basement. As I looked through the
boxes remembering all the great times and
experiences I came across my very first
copy of Stephen R Covey’s “The 7 Habits of Highly
Effective People”. Ironically, just days before this I
had started reading the book again. I asked myself, is
this just a coincidence or something more?
It had been a number of years since reading
the book and not surprisingly this time as I read the relationship with, and the value they receive from, the
messages seamed to apply more to credit unions’ and branch.
banks’ sales and service than to me personally. Each I used the word detrimental because reactive selling
habit I went through I said to myself, “Wow, this often leaves the member vulnerable to situations they
applies so well to what branches should be doing for did not anticipate which they now must resolve. For
their membership and their teams”. With that in mind I example, overdrawing their checking account without
am excited to share some of my brief thoughts on how overdraft protection properly set up. Totaling their car
“The 7 Habits” can be applied to your branch sales without GAP insurance. Suffering a loss of income
efforts. without debt protection on their loans. All products
and service the member decided not to take because
Habit 1: Be Proactive they were not properly explained and offered.
In “The 7 Habits”, the first principle of effectiveness To be highly effective, branches must foster a
Covey teaches is being proactive rather than reactive. proactive sales environment where representatives
As explained this means taking responsibility and understand their responsibility to ensure the member’s
ownership rather than avoiding it through blame and complete satisfaction. In fact, they recognize their
excuse. It is in recognizing the ability we have to members are depending on it. The representative takes
influence and shape our outcomes. ownership of the member’s financial needs and chose
When a consumer engages the branch for a new behaviors which empower the memberto succeed.
product or service, a reactive representative would see And they recognize that they share the responsibility
the member as the expert, knowing what they want for the member’s future financial situation. With this
and more detrimentally, what they don’t want. I find in mind they work within their “Circle of Influence” to
that many branch sales representatives operate from a deliver what the member truly needs.
reactive position allowing the member to define their
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Habit 2: Begin with the End in Mind
Before branch sales representatives can be effective
they must first understand what they are working to
accomplish. Every credit union and bank has a mission
and a vision they are working towards. If that mission
and vision is for example, to be their member’s primary
choice for financial products and services, employees
need to understand what that means and what it looks
like. More than this they must clearly understand
their role in the process and receive proper training to
accomplish it.
Representatives that are equipped to start each
member interaction with the end in mind understand
branch to higher employees with the strengths most
the products and services they are working with. They
suited for the position resulting in higher levels of
have been trained on the features and how they benefit
effectiveness.
the member and give them an advantage in their
financial lives. They know how all of the products and
Habit 4: Think Win-Win
services offered by the credit union fit together to fill
Too often sales programs can get out of alignment,
the individual and unique needs of their members. And
reaching for the goal at the expense of the consumer.
lastly, they have a vision of what a primary financial
This was no better exemplified than in the Wells
relationship requires and can see the path to build those
Fargo Sales Scandal which came to light. Sales
relationships with every member interaction.
representatives should be trained that sales success is
defined by the value they provide to their members and
Habit 3: Put First Things First
not necessarily the sales numbers they reach.
Covey explains that habit 3 is about focusing on your
In a sales setting the title of this habit could more
highest priorities and those activities which provide
appropriately be named “Win-Win-Win” where the
the most worth. For a sales representative their highest
goal is to provide value to the member, the branch, and
priority should be on the member and helping them
the employee in each interaction. Sales efforts should
achieve their financial goals. Too often though we find
be monitored, and training and coaching should always
our sales representatives bogged down with paperwork,
focus on this value adding approach. Any time one
title tracking, loan audits and other busy work. Clearly
side becomes out of balance it should be corrected
these are essential functions of the branch and cannot
quickly.
be ignored, but are they the highest priority of the sales
representative?
Habit 5: Seek First to Understand, Then to Be
If possible, branches should look to assign these
critical and necessary functions to a processing or Understood
support team. There are two main benefits in doing this. With this habit, Covey explains that far too often our agenda,
First, this frees up time for the sales representatives to and our selfish need to be understood trumps the needs
focus on engaging members and building those primary of others around us. When we do stop talking and start
financial relationships. And second, it empowers the listening, it is with the intent to reply not to understand.
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For many sales representatives their first response center, mortgage department, investment team,
when a member asks for a new product or service, or insurance agency, business development team, indirect
when they have a problem with their account, is to lending, SBA department, and the many branch sales
immediately start offering solutions, assuming they teams. And to support each of these sales teams are
know exactly what the member needs. However, this is the back office departments. Many times these various
not effective at building primary financial relationships sales teams and departments work in silos. A member
and providing value. applies for a mortgage and leaves with just a mortgage.
Because value is largely subjective to the member, A member needs insurance on a car they just purchased
to be highly effective employees must be trained and and leaves with just an auto policy. A new business
coached to ask questions which identify the member’s has approached the credit union for checking and cash
true needs, wants and financial dreams, and uncovers management and the new business members leave with
the motivation behind those needs before offering just a business account. Little to no cross department
product solutions. One essential place to do this is in sales referrals occur.
the member interview, the critical discussion which Building synergies within the credit union and
should happen when a member or potential member especially between the various sales teams, creates
first engages a credit union employee to open a new value in the member’s relationships which is greater
account, product, or services. than what each individual team can provide on their
When sales representatives have the motivation own. For this reason sales representatives should be
to first understand, their results will change in every cross trained on all products and services regardless if
member interaction. Think of sales objections. How they directly sell them to the membership. They should
would the outcome change if the sale representative be encouraged to analyze, identify and refer these
listed to learn what the member was asking for with products when found because, when all departments
an objection, rather than simply trying to resolve the work as one team synergistically, the value provided to
objection? Or when a member is dissatisfied, has a the member is greatly multiplied.
problem with their account, and submits a complaint?
Rather than listening to defend, they listen with Habit 7: Sharpen the Saw
empathy to understand and then to help even if helping We all know that the most valuable asset to an
means admitting they or the credit union have made a organization is its employees. Branches must invest
mistake. in their employees in order to create highly effective
sales teams. In “The 7 Habits”, Covey suggests
Habit 6: Synergize that we as individuals must be balanced, not only
Synergize simply means to capture the creative power investing in our professional abilities but also our
of cooperation in the highest form, known as teamwork. physical, social, mental and spiritual health. Likewise
We have already discussed the power that synergizing sales representatives must be balanced with training,
with the member can bring in providing exceptional coaching, leadership, and recognition to keep them
value in the member relationship. But synergies must renewed and engaged.
be developed beyond the member relationship, they The responsibility for Sharpening The Saw is not
must be developed within the organization as well. only the organizations but also the representatives.
Your organization operates multiple sales teams They should be encouraged to pursue their education,
such as the call center, online and phone lending participate in continued learning, and preparing
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themselves to accomplish new levels of success. Nick Brown Consulting,
Sharpening The Saw should be a lifestyle rather than established and founded
an activity. by Nick Brown in 2015,
In closing, branches exist to serve their members is a credit union–specific
financial needs. Having sales representatives who sales training group
are highly effective is critical to reaching this goal dedicated to bringing a
proactive sales approach
and providing exceptional value to their members. If
to every credit union.
these habits do not yet exist in your branch Covey has
Nick Brown Consulting
a suggestion for this as well. One of the last thoughts
accomplishes this aim by
in “The 7 Habits” is the need for a transition person.
providing sales consulting
An individual who will be a first mover and lead a and training to enhance branch sales, outbound sales
transition from what’s always been into what needs to and lending center sales. With an emphasis on lending
be. This transition person can be a senior leader or and cross-sales, Nick’s goal is empowering credit
even a sales representative. No doubt though that they unions to add value in the life of every member in every
will be a leader. Now the question for you is, who will interaction. Engage Nick Brown directly at 801-860-
this transition person be? 5807 or nick@nickbrownconsulting.com. Ask about
his credit union–specific workshops and online sales
training, featured at www.nickbrownconsulting.com.
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SOLU TIO NS
Sales or Service
Are Your Branches Prepared for the Future?
Declining transactions have many organizations contemplating the
closure of branches. But that decision doesn’t have to be an either-or
one. Uncover ways to transform your branches into centers that not
I
only serve members but also generate sales.
f your branch offices are like many of the clients
we at Lending Solutions Consulting, Inc. work
with, you have been experiencing a decline in
transaction volumes over the past few years.
Why is this critical? It ultimately drives up your
average cost per transaction and focuses pressure on
the profitability of that particular branch. Should you
keep these type of branches open or consider closing
them? This article will discuss strategies on how to
avoid having to ask yourself this question by turning
your branches into both sales and service centers.
According to a study by ORC International, even
as consumer usage of mobile banking increases, 88 Our company philosophy at Lending Solutions
percent of consumers feel they still need a physical Consulting, Inc. is that “everything follows loans.”
branch location to go to for their banking needs. Even Loans are the most sustainable and lucrative form
with new technology such as video kiosks, the need of ongoing revenue. At the branch level, we believe
for personal contact appears to prevail. Developing wholeheartedly that “it’s all about relationships.” The
strategies to enhance profitability in these branches goal should be to turn a new member into a lifelong
will become the key to continue providing that personal member. Opening an account with a nominal share
touch and to maintaining profitability for shareholders. balance and no draft, credit card or loan has no value
for that new member or the branch. The question is
how do you accomplish the lifelong member objective?
The answer is centered on the strength of the interview
and the skill of your branch employees to actively,
not passively, listen. When this is accomplished, sales
become far more natural.
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