The Human Side of Financial Services

1. The Human Side of Financial Services By: Alfred Poitier CaribDE (CUDE) The Bahamas Presented at CCCU Convention 2013 - Panama

2. “Members Matters Most” • How can we parlay this theme into reality back at our individual Credit Unions? • Do we demonstrate by our actions that our members matters most?

3. What is the Human side of Financial Services? • It is the interaction between the employees and often times directors of a Credit Union and its’ members. This interaction is usually what forms the perception or image of your Credit Union.

4. Perception/Image of a Financial Institution • Front line employees and representatives of a Credit Union or other Financial Institutions affect the manner in which the institution is perceived.

5. Negative Image Despite Big Marketing Budget • If these individuals do not have a strong understanding of the services and products as well as the philosophy of the institution, you are running the risk of having a negative image despite your big marketing budget!

6. Selling a Dream • Often times the financial services organizations paint pictures that really are not reality. We get caught up in marketing or selling our organization in such a way that it could easily be misleading to the point where it may seem as if we are selling a dream.

7. Catchy/Deceitful Phrases • Members/Client First • Quality Service • Financial Institution of Choice • The number 1 Financial Institution • The Leader in Financial Services • Your Financial Institution • The People’s Institution • People helping People

8. Truth should be the basis of all dealings • Truth - that five letter word meaning; factual, actual or real is the gate keeper to the existence of financial service providers. • When you are providing service to your members your words must be truth.

9. SIGMUND FREUD - wrote • “Words have a magical power. They can bring either the greatest happiness or deepest despair; they can transfer knowledge from teacher to student; words enable the orator to sway his audience and dictate its decisions. Words are capable of arousing the strongest emotions and prompting all men's actions”

10. Actions • Do not let your actions or the actions of your organization prompt negative actions from your members or perspective members.

11. Do not misguide or be misguided. • Let us not be misguided nor let us misguide. Generally speaking in many financial institutions only that which is thought to be beneficial to the organization or the bottom line is considered prudent or worthwhile.

12. Inconvenient to hear the voice of the member • Unfortunately, we often find it inconvenient to hear the voice of the member and address his or her concern when it comes to our product and service offerings.

13. Benjamin Franklin - Quote • “All human situations have their inconveniences. We feel those of the present but neither see nor feel those of the future; and hence we often make troublesome changes without amendment, and frequently for the worse.”

14. Pay close attention to your Members • If we pay close attention to our members we should have foresight or at minimum some idea of the impact our actions today will have on them tomorrow. We should avoid taking actions that would generally have a negative or less than satisfactory effect on our members.

15. Several Components of the Human Side of Financial Services • Truth/Ethics • Principles – specifically Cooperative Principles • Communication • Training • Customer Service • Culture • Human Resources

16. Human Aspects of Financial Services • The Human Aspects of Financial Services should direct cooperators to ensure that the member is placed above all else (translated members should matter most). • We all say that our members come first but do we truly practice what we preach?

17. The epitome of the Human side of Financial Services • Credit Unions should be the epitome of the Human side of Financial Services. • If you are owned and controlled by your consumers obviously you would strive to ensure that whatever is done is pleasing and beneficial to your consumers!

18. You should know the basis of the existence of your Credit Union • Many of us as Cooperators forget or do not understand the principals of our existence. • As Cooperators we must always be mindful of the Seven Principles of Cooperatives. • These principles form the nucleus of our existence.

19. 1st Principle of Cooperatives • Voluntary and Open Membership-Credit Unions are voluntary, cooperative organizations, offering services to people willing to accept the responsibilities and benefits of membership.

20. 2nd Principle of Cooperatives • Democratic Member Control-Cooperatives are democratic organizations owned and controlled by their members, one member one vote, with equal opportunity for participation in setting policies and making decisions.

21. 3rd Principle of Cooperatives • Member Economic Participation-Members are the owners of the credit union and contribute to, and democratically control, the capital of the cooperative.

22. 4th Principle of Cooperatives • Autonomy and Independence-Cooperatives are autonomous, self-help organizations controlled by their members.

23. 5thPrinciple of Cooperatives • Education, Training and Information- Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of the cooperative.

24. 6th Principle of Cooperatives • Co-operation among Co-operatives-Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, regional, national, and international structures.

25. 7th Principle of Cooperatives • Concern for Community-While focusing on member needs, cooperatives work for the sustainable development of communities in which they operate.

26. Cooperative Principles speak to the Human aspect of Credit Unions • We should be clear that the Seven Principles of Cooperatives speak to the member or the human aspect of the organization and hence my earlier statement Credit Unions should be the epitome of the Human Aspect of Financial Services.

27. Many of us have strayed away from these Principles • Unfortunately, many of us have strayed away from these principles which lay out the strategy for our existence as cooperators. • Understanding the purpose of your existence or the founding principles of your organization provides a blueprint of what the organization should or should not do.

28. Fulfilling the Purpose of your Organization • We must be mindful that even though we may know the founding principles of our organization and purpose of its existence but do not practice them we are doing our members and our organization a disservice as we will not be able to truly fulfill the purpose of your organization.

29. Dynamic vs. Lack Luster • The bridge between being a dynamic humane financial institution and a lack luster financial institution is communication.

30. Communication • All Employees, Managers and Directors should be on the same page with regards to the services, products and processes of the organization. When different representatives of an organization give different responses on the same matter it does not lend well to the perception of the organization. organization.

31. Communication must be succinct • We should know the ins and outs of our organization and also be able to clearly articulate them to others particularly members and perspective members.

32. Communication must be bilateral • We must hear our members and listen to exactly what it is they are saying to us.

33. Effective Communication involves input, output and understanding • Most individuals prefer to talk as oppose to listen and this is what creates major problems in organizations particularly when the leaders are the ones not listening.

34. The Process for Communication • The process for communication in any organization should mirror the hierarchy or chain of command of that organization. Board of Directors should communicate to managers, managers should communicate to supervisors, and supervisors should communicate to line staff and vise versa.

35. Summary of Communnication • Communication plays a vital role in fulfilling the objectives of any organization. • There should be a communications process. • Communication should be clear but short and to the point. • The communicator should be confident. • The communicator should listen and understand what is being said to him or her. • The communicator must be knowledgeable of that which is being communicated.

36. Training is Crucial in any Organization • We often take training for granted and unfortunately it shows in the delivery of our services and products. • Organizations that do not have a properly communicated training process end up providing mediocre or less than satisfactory service to its Members which highlights the importance of Principle 5 of the Principles of Cooperatives – Training and Education

37. Lack of Knowledge • Without knowledge gained from training or information about your products and services employees can not properly attend to or confidently communicate the products and services to your Members or Perspective Members. The blame in this case sits clearly at the feet of Management and/or Directors because of poor communication or lack of communication to supporting staff.

38. Exceptional Services • Exceptional Services can only be given when the giver is well informed or knowledgeable about that which he or she gives. • This knowledge comes through Education and Training which are directly achieved through communication.

39. Nature of Customer Service • Most people do not truly understand the nature of customer service. Some people think it is simple service given to close a deal however, the reality is that good customer service includes action before during and after the deal is closed.

40. Good Customer Service • Good customer service equates to improved viability of an organization and ultimately improved profitability. Good service is more often than not rewarded. Thus your efforts dictate your rewards at the end of the day.

41. Knowledge is an Important Component of Customer Service • Another important component of customer service is knowledge. You must know what it is you are selling. You cannot be effective if you are not aware of what your organization offers.

42. Culture is a key component of any organization • Success of any organization lends heavily to “the powers that be” understanding the culture of the organization and the individuals or in the case of Credit Unions the Members who utilize the services and products of the organization.

43. Definition of Culture • For clarity the definition of culture in this context and as defined by Webster’s’ Dictionary is “the attitudes and behavior that are characteristic of a particular social group or organization”. • The generally accepted corporate definition of culture is simply “the way we do things around here”.

44. What is the culture of your organization? • Do you know how things are done around here or there?” Do you see how the Seventh Principle of Cooperatives relates directly to the community and how your organizational culture must take into consideration the culture of the community in order to be successful?

45. Negative Cultures can bring the largest organization to its knees • Negative Cultures take away from our effectiveness and definitely affect our relations internally and externally. It is important for us to strive to eradicate negative cultures if they exist and if they don’t strive to ensure that they do not develop.

46. What does NOT work in changing a Culture? • Some group decides what the new culture should be. It turns a list of values over to the communications or HR departments with the order that they tell people what the new culture is. They cascade the message down the hierarchy, and little to nothing changes. “People will change their behavior only if they see the new behavior as easy, rewarding and normal.” - John Paul Kotter a former professor at the Harvard Business School, an author, and now Chief Innovation Officer at Kotter International.

47. Human Resources plays a pivotal role in any organization • Some of us have a negative culture of hiring individuals who we know are not capable of doing the job that needs to be done. • We should not hire an anti-social friend to be a member service or marketing representative.

48. Disservice to Members • At times we try to put square pegs into round holes in our organizations and while it may benefit one or maybe a few individuals it harms the organization and the members at large.

49. Right Minded Individuals • If we do not have right minded individuals who buy into the Credit Union principles and the objectives of our organizations, we will do ourselves a disservice.

50. Employees that can’t get it right • Some of us may have employees that have been with the organization for many years who just can’t’ seem to get it right in any department. However, due to some relationship or lack of intestinal fortitude we transfer them from one area to the next knowing that they are not and probably cannot perform in a manner that would be productive to the organization.