Musings from the CU Suite

Written by Anthony Demangone

As you read this, I'll be on my way to speak to a NAFCU member credit union's board of directors. 

I love speaking to boards, partly for selfish reasons.  In order to speak coherently, you have to prepare. And to prepare, you must carve out some white space to think.  And that's a rare commodity these days. 

Inevitably, someone asks "the" question during a presentation.  It comes in different shades, but at the core, the question is always the same.

What does the future hold for credit unions?  How should we prepare?

It is a wonderful question, but extremely tough to answer. 

Things change at such a rapid pace, that any prediction more than a few years out seems like a shot in the dark.  Just think about the following:

• There isn't a day that I don't use a "Google" product.  From searches to G-mail, and from Picasa to Feedburner, Google is a dominant force.  It started in 1998. The stock was first listed in 2004.  It now has more market capitalization than General Electric.  And Johnson & Johnson.  And Coca-Cola.
• Facebook started in 2004.
• Twitter? 2006.

Twenty years ago, none of these companies existed. So where will technology take us twenty years from today?  How will people use financial services?

Like I said, it is a tough question. 

As I sat and thought about this, a smile came to my face.  And a memory from years ago. 

"Keep your heads on a swivel, boys.  Keep your heads on a swivel."

That phrase was uttered by Coach Quigley, a physical education teacher from my high school who also helped coach the football team.  He had a few classic phrases, but the swivel line was my favorite. And here's why.

As a football player, you have an assignment.  For each play, you either try to block your opponent in this direction.  Or you fire into a certain gap.  On paper it looks clean. And during practice, it all works to perfection. 

But upon the snap of the ball, a wee bit of chaos entered the equation.  Inevitably, a player would streak toward the ball, unaware that an opponent was closing in from a different direction.  A violent collision would occur, and coach Quig would chuckle. 

Demangone, you gotta keep your head on a swivel! 

Good players, a category that somehow always eluded me on the gridiron, had the ability to keep their head on a swivel. They saw things develop and they could react. They had peripheral vision.  That's what coach was getting at.  Even with all the preparation in the world, you had to keep your eyes open and react.

And so it is for us.  What will the future hold?  It is hard to tell.  Perhaps impossible.  But perhaps that's not the point.  No one knows the future.  But those that can prepare enough to be generally in the right position have a leg up.

In other words, make sure your credit union's head is on a swivel.  

1. How well does your credit union manage legal and regulatory hurdles?  The better you are at this, the better you can spot problems on the horizon. 
2. Does your HR process attract and keep great talent?
3. How does your credit union manage strategic risk?  As you navigate today, do you have an eye on the future?
4. How does your credit union manage change?  Can you stop on a dime and move in a new direction if needed? How does your staff, management team and board deal with change?
5. Does your credit union have organizational courage?  That's the courage to tackle those big nasty problems that hold you back.  Do you tackle those problems today, or punt them to next year?

Can you predict the future?  That's debatable.  But if your credit union makes the grade on those five sets of questions above, you'll be prepared for whatever comes. You're head will be on a swivel.

And believe me, you don't want to disappoint Coach Quig. Trust me on that.

***

If you liked this post, consider the following:

• Stop the presses! (Musings.)
• The blessing of pending doom. (Musings) 
• Well, because we've always done it that way.  THAT'S WHY! (Musings.)
• India's Last Telegram: Three Thoughts. (Musings.)