Transforming A Culture

1. Transforming A Culture

2. Transforming a Culture Presented by Matthew Herrick and Lori Reeves September 2006

3. FPCU Profile • Established 1937 • Members 53,000 • Field of Membership Community & SEG based (300)

5. What is APEX? APEX is a set of disciplines that draw connection between employee actions and the corporate Vision

6. APEX (Achieving Partner Excellence) APEX Provides: • Member centric organization (retail) • Sales and service philosophy • Standard communication methodology • Planning tools • Accountability structure • Management discipline • Professionalism & organizational attitude

7. APEX (Achieving Partner Excellence) Is: • People & Organizational culture • Philosophy towards achieving excellence in: • Sales & Service • Proactive Management • A living process to execute our vision Is not: • A training program • A one-time event • Not just for sales & service

8. Vision No timeline Strategy 5 years People Corporate Culture Business Plans 2-3 years Budget Annual Department Plans Less than annual Individual Goals People & Culture Dimension

9. Corporate Excellence Clear Capable Motivated

10. Set The Stage • Clear • Vision Statement • Goals -- at all levels • Roles & Responsibilities – (job descriptions, success cards, quantitative & qualitative standards). • Management Non-negotiables/minimum standards (e.g., service philosophy, sales standards, outside business calls, functional service level requirements, etc.).

11. FPCU Vision Statement Building Lifetime Financial Partnerships

12. FPCU Business Model Every Partner is serving the member directly or supporting a Partner who is doing so!

13. FPCU Business Model SUPPORT GROUPS FACTORY/WAREHOUSE DELIVERY CHANNELS MEMBER OWNERS

14. RESPECT RESPONSE REWARD 3Rs Service Program

15. Sales Philosophy

16. Consultative selling is the high road to service: • Encourages a proactive search for member needs • Focuses on member benefits • Matches right product to the member’s needs • Generates strong cross sell results while building loyalty

18. Pre-requisite for Success • Branch Sales Calendar • Weekly Sales Meetings • Tele-consulting (1,500 per week) • Teller Referrals (500 per week) • Profiles (200 per week) • On-site presentations • New SEG Development • Monthly Job Family Meetings • Weekly Conference Call

19. Set The Stage For Success • Capable • Modified Organizational Structure • Re-engineered work flow processes (consumer & mortgage lending, item processing, audit etc.) • Training (product, sales & service) • Recruitment (BVAs) • Sales Management System (Cohen Brown) • Structured Coaching • Automated Sales Tracking & Reporting

20. Set The Stage For Success • Motivated • Sales Incentive Program • Reward & Recognition Programs • Quarterly Winner’s Circle • Annual President’s Club • Chairman’s Club • VIP Award (Service ) • Sales Campaigns • Consistent and Constant Communication of The Vision -- Articulate What Is At Stake

23. APEX Branding

24. Training

25. Elements of Success • Alignment with the Vision • Board Buy-off • CEO & Exec. Mgmt. Champion • Rank and File in The Organization are Engaged – All are in the game! (HR, IT, Accounting, Finance, CUSO, Lending, etc.) • Provide Ongoing Leadership

26. Ongoing Leadership • Walk the talk • Use the Process and Language • Make Sales & Service Disciplines Important & Non-negotiable • Visibly Celebrate Success • Constantly Engage, Direct and Redirect • Keep Focus on Sales & Service Objectives

27. Ongoing Leadership • Create/recreate urgency • Inspect what is expected • Intervene to positively impact performance • Remove Obstacles -- Workflow Simplification and Centralization • Inspire • Engage in Public Recognition

28. Result All of This = Institutional Caring

29. APEX 2005

30. Thank You!

31. Questions