Musings from the NAFCU CU Suite

Three Takes on Innovation

Written by Anthony Demangone

I'm reading quite a bit about innovation these days.  While digging through my RSS "reading pile" this morning, I saw these two related articles. Well, one is a video.  

1.  Four ways to think like an innovator.  (HRB.com)  This short video gives four important points that will help focus your innovation.  And he quotes "the great American philosopher, Mike Tyson."  You should listen for that reason alone.

2.  The four worst innovation assassins. (Bloomberg.com.)  (I will say this - assassin is one of those words I hate using in a blog.) This comes from the same guy behind the post above, Scott Anthony. The article is the flip-side.  Mr. Anthony spells out four "types" of people that stifle useful innovation.

Here's a snippet:

"1. The Cowboy. Itching to create a corporate culture tolerant of creativity and innovation, the Cowboy says something along the lines of, "No boundaries! Just great ideas!" Of course, companies should continually evaluate and push their boundaries. But every company has a set of things it simply will not do. Saying innovation has no bounds when it does just leads people to waste time working on ideas that — honestly — have no hope of ever being commercialized.

Instead, consider issuing highly-focused challenges. For example, a few years ago Netflix offered a $1 million prize to any team that could improve the performance of the algorithms that determine which movies it should suggest to consumers by at least 10%. More than 250 teams rose to the challenge, and two actually exceeded the target. Focus is one of innovation's best friends."

***

I hope you enjoy those items.  As for me, I'm no innovation guru.  But I will say this - innovation doesn't have to be a huge idea.  Small tweaks can go a long, long way.  Exhibit one?  Steve Van Beek and NAFCU's email address.  

When Steve joined NAFCU, the email address for our compliance assistance service was regcompli@nafcu.org.  Why Regcompli?  I'm not sure.   But I'd guess email addresses once had limits regarding the number of characters.  So, regulatorycompliance was shortened to regcompliance, which was shortened to regcompli.

But no one could remember that email address. Or if they did, they misspelled it as regcomply@nafcu.org.  

Enter Steve Van Beek and a powerful question.

Why can't we simply use compliance@nafcu.org?  The answer: We could.  And we did.  And our email contacts went up 10% as a result. 

It should be no surprise that Steve now heads our compliance services.  He also writes for one fantastic blog. 

So, here's to good questions and innovation.  And here's to you all having a great weekend!

Saving Money: Any Good Ideas?

Written by Anthony Demangone

I'm currently in the little slice of heaven known as Key West, Florida.  I'm attending NAFCU's CEOs and Senior Executives Conference.  I hope to blog on some of the tid-bits I learn from the week.

But for now, I see myself surrounded by tropical drinks, sunscreen, and sandy beaches.  It tends to suck the motivation out of me.  I don't know how folks who live here get anything done.

With that in mind, I need your help.  I'm guessing that between the 1,000-plus readers who suffer through my rants, there are a ton of great ideas on how credit unions can save money.   Send me your ideas or email me, and I'll compile them and share.

While I have an ounce or two of energy left, please let me start things off.  Here are some ideas we've used this year at NAFCU to shave a few dollars off expenses.

1. Time value of money.  You may work with an outside strategic planning facilitator, consultant, or some other third party.  Perhaps the contract says that you'll pay them within three weeks of the event.  Some contracts have you pay half of what you owe now, and the other half later.  If you are comfortable with the third party's reputation and work product, you may want to consider paying them everything up front in return for a reducation in fee.  Some third parties will value receiving that money sooner rather than later.  If you have the liquidity, it can be a way to save a few bucks.  NAFCU has saved roughly $10,000 this year using this tactic. 
2. Multi-year discount.  Some software or consulting products might offer you a reduction for a multi-year agreement.  Again, if you are very comfortable with that vendor, this can shave a few bucks off the total cost. Earlier this year, NAFCU found a 15% discount if we went out three years with a particular software license.  Total savings?  $8,000 a year. 
3. Our fancy printer.  NAFCU purchased a high-end color printer, that does pretty much everything except brew coffee.  We found that it had enough functions for us take some formerly out-sourced printing jobs in-house.  Savings?  So far, roughly $6,000.
4. Watch out for auto-pilot. We're looking at existing contracts.  By simply reaching out to our third parties and reviewing what they offered against what we need, we've been able to save money by ending components of some contracts that had been renewing on auto-pilot.  In one  case, we're saving more than $20,000 per year. 
5. Umm, is anyone using this anymore?  NAFCU had bottled water.  We also had a number of filter stations that produced...filtered water.  I asked whether anyone really had a huge need for the bottled water?  No one did.  Savings?  Roughly $3,500 a year. 

I like finding these kinds of savings, because we're saving without giving up anything that we need.  I know you guys can do better than that. Please send me your cost savings ideas, and I'll compile and share. 

Have a great week, guys. Now, I wonder where I can find one of those drinks with the tiny umbrellas in it?

10 Rules for Email; And Don't Forget One Important Point

Written by Anthony Demangone

Email is such a major part of our lives, I always pay attention to articles that touch upon the subject. How can you use email more effectively?  More efficiently?  

With that in mind, I need to give a hat tip to Mr. Anderson for forwarding this gem - "My 10 Rules for Business Email."   The tips are a must read for any manager.  Here are some that caught my eye.

***

3.  Unless absolutely necessary due to large time zone differences or some other extreme restriction, DO NOT use email to broach a topic that you know is going to be volatile/sensitive or spark far more questions than you can anticipate and already answer in an email.  You need to actually talk to the person...

7.  Another one for email that should probably go without saying – proper grammar, bullets, paragraphs, lists, and font formatting are essential for making your message easy to follow and understand.  It’s just good business writing.  If you are using a paragraph to list multiple items that need someone’s response, it’s almost guaranteed that one of those items will get missed; go with bullets or a numbered list instead...

8.  Keep the email as short as possible while still communicating all of the appropriate information.  No one wants to read an email with multiple, lengthy paragraphs (or worse – one extremely long paragraph).  Think to yourself, “Would I want to be on the receiving end of this novel?”  If you’ve already applied rule #7 and pared the irrelevant information but you still have a gargantuan email, then think about whether an email is really the appropriate vehicle for this message.  It might be more effective to set up a meeting.

***

I recommend that you read the entire article.  And while we're on the subject of writing...

In the world of facebook, email, Twitter and text messages, writing is still extremely important. There is nothing as powerful as the written word.  Even in 140-character increments. 

With that in mind, I'd recommend that you pick up this book: On Writing Well. A good friend bought me this book before I started college, and it has served me well.  Particularly, I love the book's chapter on clarity.  Here's how that chapter starts:

***

    Clutter is the disease of American writing.  We are a society strangling in unnecessary words, circular constructions, pompous frills and meaningless jargon.

    Who can understand the viscous language of everyday American commerce: the memo, the corporation report, the business letter, the notice from the bank explaining its latest "simplified" statement?  What member of an insurance or medical plan can decipher the brochure explaining his costs and benefits?...Our national tendency is to inflate and thereby sound important.  The airline pilot who announces that he is presently anticipating experiencing considerable precipitation wouldn't think of saying it may rain.  The sentence is too simple - there must be something wrong with it.

    But the secret of good writing is to strip every sentence to its cleanest components.  Every word that serves no function, every long word that could be a short word, every adverb that carries the same meaning that's already in the verb, every passive construction that leaves the reader unsure of who is doing what - these are the thousand and one adulterants that weaken the strength of a sentence.  And they usually occur in proportion to education and rank.

***

To me, that passage is poetry. 

And with, I'd truly like to take this opportunity to wish everyone to have a wondeful weekend. 

Have a great weekend, guys. Next week, I'll travel to NAFCU's CEOs and Senior Executives Conference. If you'll be there, please introduce yourself.  The first beverage is on me. 

Credit Union Corporate Governance and Structure - The Secret to Our Success

Written by Anthony Demangone

With member business lending and supplemental capital in the headlines, it is just a matter of time before the critics of credit unions will launch attacks calling for one or more of the following:

1. Taxation
2. A freeze on our existing powers
3. Tar and feathering

The rationale for the attacks?  Here are the usual suspects:

1. Quack, quack. If it walks like a duck, and it quacks like a duck, it must be a duck.  The argument is that if we offer the same products and services as a taxed-bank, we should have to pay taxes as well.
2. When I was a youngster.  This argument uses both history and a very strong set of binoculars. Credit unions, our critics will argue, look nothing like they did when the industry was formally born in the 1930's with the passage of the Federal Credit Union Act.  With each passing decade, credit unions have sought to offer more and more products and services for their memberships. You'll hear terms like "mission creep."  

I understand why our critics make these arguments. Self interest.  They are worried about their 1/2 acre of turf.  Nothing more, and nothing less.  The arguments against credit unions are either intentionally misleading, or grossly uninformed.  (The smart money is likely on a combination of both.)

Both arguments against credit unions ignore the true difference-maker - corporate governance and structure.  I'd ignore it, too, if I were them.  First, it is a complex subject - not tailor-made for sound bites and full-page advertisements. Second, our critics never enter this realm, because their arguments would simply not stand up against the realities of credit union corporate governance and structure.  

Corporate governance, and corporate structure, are strange, yet powerful concepts. How an organization makes its decisions greatly affects how it goes about its business.  That's why you'll find privately-owned businesses think twice before going public.  Dealing with a board and outside investors takes away one's flexibility. 

Our industry's corporate governance and structure form a powerful rationale for our tax exemption.  We are a member-owned, financial institution, with no outside ownership of capital.  We have a volunteer board of directors, that comes from and is elected by the membership.  Now, each of these points has an exception.  Federal credit unions can pay one person to serve on their board, but I have yet to find one that does.  Some low-income, community development credit unions can accept outside capital.  But by and large, the characteristics I outlined above apply to our entire industry. 

Those characteristics are very important. 

• Member-focus.  A board of the members and by the members, will certainly guide an organization to be member-focused.  Remember, there are no outside investors demanding a return on their investment.  Rather, as a financial cooperative, the goal is to maximize the member offerings. 
• Anti-greed.  The whole set-up does tap down greed, to a point.  I'm sure you'll find some greedy folks within our industry, but if you want to become an overnight millionaire, the odds are against you in the credit union industry.  First, there's no stock.  Which means no stock-options. And it means no IPO. At least not without a change of charter. Profits roll back into the organization.  Second, CEO salaries are set by a volunteer board.  Does this mean that no credit union CEO enjoys a large salary and benefits package?  No, of course not.  But having a volunteer board of the membership is a nice counterweight to the possibility of excessive compensation. 
• Congressional hand-cuffs.  The tax break is a huge benefit to credit unions.  But to be fair, one has to look at it in context.  In creating our cooperative model, Congress went to great lengths to create further checks and balances that limit credit union powers. Federal credit unions have a usury ceiling of 18 percent. We have very limited investment choices.  And we have a limited field of membership.  All of these limitations tend to limit growth or trying to turn a fast buck, be it by making money quickly via high interest rates, risky investments, or by a rapid expansion of the membership. To be clear, none of this means that credit unions have not or will not get over their head in investments, growth strategies, etc.  But those would be the outliers. The basic corporate governance model still rings true, even though it cannot prevent every excess or problem. 

As for the common credit union attacks, here's how I generally respond:

Quack.  Quack.  If it looks like a duck, and quacks like a duck, it is a duck.  Right?  If credit unions want to act like a bank, they should be taxed like a bank.  Right?  I think the basic premise of this argument if flawed.  Credit unions do not quack like a bank.  The corporate governance and structure behind the credit union is completely different.  Both a community bank and a credit union might offer commercial real estate loans.  But the profit that a credit union makes off that loan flows back to the membership. And a member-populated board of directors made the decision to enter commercial lending at that credit union.  

For that reason, I don't think a credit union quacks like a duck, or even resembles a duck.  Just because two different groups deliver the same item, it would be sophomoric to equate the two without further analysis.  Along those lines, one of my most favorite times on this beautiful planet is when I'm home, and my mother and I share a cup of coffee in the early hours of the morning. Just because my mother pours me a cup of coffee doesn't mean she should be treated like a barista at Starbucks.  

When I was a youngster. As noted above, credit union critics love to look back on times when credit unions didn't offer checking accounts.  Or mortgages.  Their argument is this: Credit unions look nothing like those that were in the minds of Congress when the Federal Credit Union Act was signed into law. 

Time marches on, and society changes with the times. When our stately Constitution was created, women could not vote, and slavery was legal.  I'm not equating the last two issues with credit unions, but I hope my hyperbole makes a point.  Time marches on, and society changes with the times.  Both credit union and bank charters have expanded through the years.  And why not?  

Imagine a cooperative that was based on delivering transportation.  As time moves on, that cooperative would have transitioned from horse and buggies, to trains, to autos, and then to airplanes. Why would time have to stand still for financial cooperatives? It simply makes no sense.  Credit unions serve the financial needs of their members.  Those needs will change.  So should the credit unions that fill those needs. 

Credit unions have an unfair advantage due to their tax exemption.  The tax exemption certainly is an advantage, but you can't look at it in a vacuum. If credit unions were so unfairly privileged by the exemption, you'd see a long line of folks lining up to start credit unions.  (Or banks converting to become a credit union.)  But the numbers simply don't bear that out.  Critics will say that a few banks are converting, and that it simply is too hard for existing banks to switch charters. But that's trying to use an exception to prove the rule.  By and large, there is no long line of folks to start up credit unions or to convert from banks to credit unions.  And I think I know why: You can't make that much money by doing so.  

***

If you are still reading, I truly appreciate your patience, and I offer humble apologies for my lengthy ramblings.  Also, I hope you don't mistake my words today to signal ill will toward my banking brethren. I wish them well. Banks serve a vital role within the American economy.  But so do credit unions.  

Too often in today's America, people judge a book by its cover.  Only when you start reading and dig in, can you truly understand a book and the story it tells.

For credit unions, that story is corporate governance and structure. It isn't a sexy story, but it has served credit unions, and their members, well. 

Culture and Design

Written by Anthony Demangone

Here's a short video that I shared with NAFCU's Vice Presidents and Directors at our monthly meeting.  It is a wonderful conversation about how culture and design play crucial roles in an organization's success.

Ignore one, or both, and you're in trouble.  Balance them properly, and your organization can soar.  I hope you enjoy it.  If you did, you might want to consider purchasing the book that inspired the short video.

If you're having a hard time seeing the video, you can watch it here.

The video implies that in order to excel, an organization may need to give up on something, rather than trying to be everything to everyone.  So, here's my question:

Does your credit union accept that it has to be subpar in any given area? Should it? Must it?  Again, please watch the video.  Those quesitons will make far more sense if you do.

Have a great weekend, everyone!

Four Counter-Intuitive Reads

Written by Anthony Demangone

I like hearing from folks who run against the herd.  I don't always agree with them, but they do tend to challenge "group thinking."  With that in mind, here are four blog posts that fit this description.

Do you need life balance? Not necessarily, says Jeff Stible.  (HBR Blog Network.) While he was writing about entrepreneurs, I think his logic could apply to many executives.  His point was that you might not need balance if you prioritize and cut out distractions.  Here's a snippet from his post:

I'm not saying entrepreneurs should give up the other important aspects of their lives. If family, friends, and hobbies are important to you, then by all means you should pursue those things. But the key is to make the most important things a priority and to get rid of the rest. Sure, there are only 24 hours in a day, but think about the hours you've wasted on social networking, television, unimportant meetings, and other trivial pursuits. As entrepreneurs, we often give up those things, but since we spend less time on the things that don't interest us, we can devote more time to the things that we're truly passionate about. If used efficiently, 24 can be an awful lot of hours.

You should multi-task, right?  Nope, says Tony Schwartz. (Harvard Business Review.) Rather, you should do just one thing at a time. Here's a snippet.

Tell the truth: Do you answer email during conference calls (and sometimes even during calls with one other person)? Do you bring your laptop to meetings and then pretend you're taking notes while you surf the net? Do you eat lunch at your desk? Do you make calls while you're driving, and even send the occasional text, even though you know you shouldn't?

The biggest cost — assuming you don't crash — is to your productivity. In part, that's a simple consequence of splitting your attention, so that you're partially engaged in multiple activities but rarely fully engaged in any one. In part, it's because when you switch away from a primary task to do something else, you're increasing the time it takes to finish that task by an average of 25 per cent.

Press releases are important, right?  No, says Alex Goldfayn.  Get rid of them. 

The vast majority of press releases are ill-conceived, in that they focus on features and specifications rather than the life-improvement value of the product or service. They are also written poorly, filled with errors and grammatical mistakes. They are not interesting. And they rarely tell a good story.

Solution: Consider eliminating press releases altogether. I'm very serious about this. You would be forced to build relationships with the media you pitch. You would be forced to learn what they cover and gather insights on each journalist's audience. And you would actually customize your pitches for them, sending one at a time. In turn, your media relations efforts would actually generate results.

Finally, here's a list  (PositivelyPositive.com) of 10 counter-intuitive ways to be happy.  Here's my favorite from the list.

7. Don’t insist on the best.

There are two types of decision makers. Satisficers (yes, satisficers) make a decision once their criteria are met. When they find the hotel or the pasta sauce that has the qualities they want, they’re satisfied. Maximizers want to make the best possible decision. Even if they see a bicycle or a backpack that meets their requirements, they can’t make a decision until they’ve examined every option. Satisficers tend to be happier than maximizers. Maximizers expend more time and energy reaching decisions, and they’re often anxious about their choices. Sometimes good enough is good enough.

*** 

Enjoy the week, guys.  

 

 

Division of Labor - Too Harsh An Approach?

Written by Anthony Demangone

Jack Welch knows a thing or two about management.  In this Newsweek article, he lays out what he believes are the secrets to building a successful team. 

Here are his main points.

1. FIRST, the leaders of winning teams always—always—let their people know where they stand.
2. SECOND, winning teams know the game plan.
   
3. THIRD, winning teams are honest.
   
4. FOURTH, and finally, winning teams celebrate.
   

I'd recommend this read.  It is short, and to the point.  But I'll highlight a passage regarding Welch's first point.  Here's what Jack had to say about communication.

***

Amazingly—to us, at least—the habit of continuously evaluating each team member is a rare and wondrous thing. Sure, leaders evaluate their people all the time—but they too seldom share those observations with the team members themselves. In the silence, stars become disaffected and leave seeking more appreciation, either in the soul or the wallet, or both. Meanwhile, the solid center wanders around in undirected ignorance, and the real underperformers drive their teammates crazy because others must carry their load (and no one upstairs ever seems to do anything about it).

By contrast, on winning teams, leaders spend the vast majority of their time lavishing love on top performers. Yes, love: rewarding them for every contribution, building their self-confidence so they have the guts to take on even greater challenges, and holding them up as a role model for others on the team. Similarly, on winning teams, leaders devote a lot of energy to middling performers, relentlessly coaching. And as for the do-nothings: leaders face into these individuals with a sense of reality, spending only the time to help them put together a résumé and find a job where they will be more successful. 

Unfortunately, in most organizations, managers spend an inordinate amount of time working around their worst people, counseling their aggrieved co-workers and rearranging work to accommodate their incompetence. They also spend a lot of hours fretting over how they can possibly break it to their underperformers that they’re terrible at their jobs without hurting their feelings. It’s all backward. Rather than hurting their feelings, you’re doing your underperformers a favor if you let them know they need to go, and the sooner the better, before they have to look for work in a recession. After all, who were the first employees to be cut in 2008 or 2009? You guessed it: mainly those who should have been set out on new paths years earlier. 

***

Is Mr. Welch spot on, or off the mark on this?  Is this approach too harsh, or is it the right way to approach management? 

***

Speaking of harsh, I may be in for quite a weekend.   On Saturday morning, the gloves come off, as do the diapers.  It is a crash-course potty training weekend for Briggs and Kate.

Wish me well. 

Patience

Written by Anthony Demangone

I can't remember when I stumbled upon "The Big Picture."  But this blog has been a joy to read for the past few years.  Written by Barry Ritzholtz, the blog shares things that would be on a Wall Street money manager's mind.  If you are interested in Wall Street or the U.S. economy, I recommend that you add it to your reading list.

Barry recently wrote about Five Things That Surprised Him About a Career on Wall Street.   It is a nice read, but I'll draw attention to "Thing No. 4."

"Get Rich Slowly: Few people have the patience to get rich slowly — everyone on Wall Street who ever got into trouble was impatient, and couldn’t wait the requisite 10-20 years it took to become a millionaire. They ended up in jail or as mortgage brokers. Patience is virtue."

That really resonated with me.  If any of you have pored over NCUA's Material Loss Reviews, you'll see that Mr. Ritzholt's advice would have been useful for those credit unions that were discussed by NCUA's Office of Inspector General. Here are some examples.

The following text comes from page 5 of NCUA's Material Loss review of U.S. Central. 

Since 2001, U.S. Central had modest growth and a generally conservative investment strategy. However, in 2006, U.S. Central’s business strategy shifted towards more aggressive growth that was focused on increasing or maintaining market share of the retail corporate credit union balances by offering competitive investment products and rates. U.S. Central’s assets grew to $44.7 billion by December 31, 2007, an increase of 22 percent from December 31, 2005. U.S. Central’s growth was achieved by offering highly competitive rates to its retail corporate credit union members, encouraging these members to invest their liquid funds with U.S. Central.

U.S. Central’s aggressive growth strategy placed increased pressure on the credit union to produce higher levels of revenue in order to increase or maintain sufficient capital. In an effort to maintain or increase net income and continue to grow its retained earnings, U.S. Central management increased its offerings of higher yielding investments for its members to invest in, such as mortgage-backed securities. U.S. Central, in turn, significantly expanded its investments in higher yielding, higher risk subprime mortgage-backed securities, to support this growth strategy. In addition, this growth strategy negatively impacted U.S. Central’s defined goal of obtaining a retained earnings to Daily Average Net Assets of 2 percent due to significant losses on previously highly-rated securities. Furthermore, we believe this growth strategy and accompanying investment decisions to purchase higher yielding securities to such extraordinary levels was contradictory to U.S. Central’s fundamental purpose as a wholesale corporate credit union, which was serving as a secure investment option and a source of liquidity for retail corporate credit unions, and support for the not for profit credit union structure.

I'm speaking for myself now.  I have long held the view that U.S. Central's demise was partially due to a desire to grow.  And grow quickly.  (Like any organizational failure, U.S. Central's demise is a complicated issue.  Much more than I'm describing here.)  But that "growth" decision did lead to the need for higher returns.  Where do you get those returns?  You know the rest of that story.

But this isn't just a U.S. Central issue.

1.  From NCUA's Material Loss Review on Nolarco.

Examiners determined, and we agree, that as a result of Norlarco management's failure to develop policies and parameters to manage risk in pursuing loan growth, as well as the lack of an adequate strategic plan, Norlarco had escalating levels of liquidity, strategic, and credit risk that required corrective action and monitoring.

2.  From Cal State 9.

Cal State 9 management’s poor strategic decisions, aggressive appetite for asset growth, and excessive concentrations of sub-prime loans, combined with the declining California real estate market, and lax internal controls, created a financial situation where institutional failure was all but assured.

3.  Ensign Federal Credit Union.

Because our review found that Ensign management did not understand appropriate risk management practices or the underlying risks inherent in their growth strategies, we believe NCUA management should consider establishing a renewed emphasis on evaluating management‟s due diligence over new or fast growing programs, as well as other areas of emphasis, with particular attention to the risk the program or area may pose to the credit union‟s safety and soundness.

4.  Clearstar Federal Credit Union.

Clearstar‟s Board and management focused on growing the loan portfolio without an apparent understanding of credit and concentration risk in that portfolio. In order to accelerate growth, liberal credit policies, minimum underwriting standards, and excessive loan modifications were approved and implemented. This resulted in the Credit Union‟s loan portfolio becoming increasingly more risky as higher risk loans were originated. A large portion of the loans originated between 2004 and 2008 were through an indirect loan program in partnership with new and used automobile and recreational vehicle (RV) dealers. The underwriting standards employed by the Credit Union allowed high loan to values (LTV) and attractive loan rates for borrowers with low Fair Isaac Corporation (FICO) scores.12 The high risk nature of the loan portfolio was generally not understood, as evident in the 2008 exam, which noted that indirect auto loans had grown to $52 million and included approximately $11 million of subprime loans. 

***

As organizations, including credit unions and trade associations, go about their business, different opportunities will present themselves.  Those opportunities could involve growth, revenue, or both. There’s nothing wrong with growth strategies, per se.  But they must be managed properly. And I'll try to recall Barry's advice when I encounter those opportunities.  As he so wisely stated...

There's no free lunch.  And patience is a virtue.

5 Lessons from Captain James T. Kirk? Yes. And One Huge Shameless Plug

Written by Anthony Demangone

As a young kid growing up in Towanda, Pennsylvania, I didn't have the 200 cable channels that currently barrage us.  We had 20, give or take.  But we had WSKG, a public TV station out of Elmira.  And they aired Star Trek.  That was all I needed. I loved that show, always wondering how Captain Kirk would dodge what appeared to be inevitable doom - with only 10 minutes to go in the episode! (And I always wondered why they didn't keep a hidden stash of those Dilithium Crystals.  They always ran out of those at the worst time.)

Anyway, I digress.  What a joy it was when a blog reader (a hat tip to you, Mr. Anderson) forwarded this post to me: Five Leadership Lessons from Captain James T. Kirk. (Forbes.com.) Sure, it is fiction.  But try to argue with these lessons.  (Plus, the article is fun.  I don't know about your week, but I could use a bit of fun right about now.)

What are the lessons?

1. Never stop learning.
2. Have advisors with different world views.
3. Be part of the away team.
4. Play poker, not chess.
5. Blow up the Enterprise. 

Please read the article yourself.  But here's a snippet, taken from the "away team" discussion.

***

“Risk is our business. That’s what this starship is all about. That’s why we’re aboard her.”

Whenever an interesting or challenging mission came up, Kirk was always willing to put himself in harm’s way by joining the Away Team. With his boots on the ground, he was always able to make quick assessments of the situation, leading to superior results. At least, superior for everyone with a name and not wearing a red shirt. Kirk was very much a hands-on leader, leading the vanguard of his crew as they explored interesting and dangerous situations.

When you’re in a leadership role, it’s sometimes easy to let yourself get away from leading Away Team missions. After all, with leadership comes perks, right? You get the nice office on the higher floor. You finally get an assistant to help you with day to day activities, and your days are filled with meetings and decisions to be made. And many of these things are absolutely necessary. But it’s sometimes easy to trap yourself in the corner office and forget what life is like on the front lines. When you lose that perspective, it’s that much harder to understand what your team is doing, and the best way to get out of the problem. What’s more, when you’re not involved with your team, it’s easy to lose their trust and have them gripe about how they don’t understand what the job is like.

This is a lesson that was actually imprinted on me in one of my first jobs, making pizzas for a franchise that doesn’t exist anymore. Our general manager spent a lot of time in his office, focused on the paperwork and making sure that we could stay afloat on the razor-thin margins we were running. But one thing he made sure to do, every day, was to come out during peak times and help make pizza. He didn’t have to do that, but he did. The fact that he did so made me like him a lot more. It also meant that I trusted his decisions a lot more. In much the same way, I’m sure, as Kirk’s crew trusted his decisions, because he knew the risks of command personally.

***

And now, for that shameless plug...you've been warned. 

NAFCU has released its updated 2012 Credit Union Compliance GPS.  The manual is the textbook for our Regulatory Compliance School, so check to see if someone from your organization attended this year's school.  If they did, your credit union already has a copy.

If not, I'd urge you to consider purchasing a copy for your credit union.  

Important note:  Keep in mind that I'm biased. NAFCU sells these manuals. I work for NAFCU.  Sales of the manuals offset the time and money spent to develop this great resource and helps us better serve our members. Again, I work for NAFCU.  If NAFCU meets its goals, it helps me keep my job and helps to pay for, at some level, Kate and Briggs' milk, tater tots, and college education. So always take a biased man's words with a grain of salt. 

As I was saying, consider purchasing this or your organization. I helped design its original format.  It is probably the one work project of which I'm most proud.  And because I love lists, here are 5 reasons why you should buy it.

1. Insurance.  You may have a cracker jack compliance officer.  But they may roll to a new credit union at some point.  Reference texts are a nice way to have some continuity of information on hand. 
2. One and done.  You only need to buy one manual for your organization each year.  You can then copy and distribute it as you see fit.  Wall-paper your bathroom walls with it, if you wish. It's your manual. 
3. Details, and context.  We tried to give both context and details for each subject matter.  One without the other makes information hard to digest.
4. It's electric.  We link to a ton of other regulations, guidance documents, etc.  If we think it can help you wade through regulatory sewage, we included it. 
5. This is what we do.  We're NAFCU.  We're compliance nerds.  We love this stuff.  We hope that is reflected in the manual.  

If I were back in a credit union, and someone told me that I could only purchase one compliance manual for my credit union - the GPS would be that manual.  

Thus ends my shameless plug rant.  Have a great weekend, everyone!

Not Your Grandfather's Key Note-Speakers: Three Examples

Written by Anthony Demangone

If you are a habitual credit union conference attendee, you'll likely see more than your fair share of key-note speakers. 

These speakers can serve a few different purposes:

• Big name can arguably attract attendees.
• A wonderful speech can leave attendees with wonderful ideas, new motivation, or both. 

But even the best speech lasts but an hour.  No matter how fantastic the experience, it will eventually fade away as time marches on.

The beauty of today's social media channels is that you can now tap into the ideas and thoughts of key-note speakers year-round.  

Case in point, NAFCU has the following three key-note speakers that will appear at conferences this year.  Each speaker has created a social media footprint that provides a ton of useful ideas.  And while this tip-toes ever closer to being a shameless plug for NAFCU events, keep in mind this can work for any speaker you see at any credit union conference. 

NAFCU's CEOs and Senior Executive's Conference. 

1. John Spence has a wonderful website that dispenses blog postings and very useful videos that help managers become better at their craft.  Attendees at this conference will receive John's new book, Awesomely Simple.   I recommend that you sign up for his blog. It is entertaining, useful and free.  
2. Brett King, another key-note speaker, also has a fantastic website.   Here's a recent post where he talks about branching for financial institutions, with an eye to Apple's experience. If you have a "branch" guru within your shop, I'd share that read.  Attendees will also get his book, Bank 2.0.

At NAFCU's Annual Conference and Exhibition , you'll hear from Stephen Dubner, co-author of Freakonomics.  It is a mind-blowing read.  Guess what?  Yep.  He has a fantastic website with his co-author.  Here's a link to a blog/podcast where he discusses whether lotteries could be the answer to America's poor savings rate.  And he mentions credit unions, to boot! 

Listen, I understand that you may or may not go to one of our conferences.  But if you do, and you like what you hear, you can keep the conversation with a speaker going as long as you want.  Social media allows you to invite the best and the brightest into your office each day.  

That's pretty cool. Pretty cool, indeed.