Financial Institution Grows with Bold New Business Plan

The Client

A successful, mid-sized credit union with a great reputation among members but not achieving its potential.

The Situation

A new CEO, with 20 years of experience and a slate of ideas, understands that in order to grow, the credit union needs to be reorganized. Size works to the credit union’s advantage: it’s small enough to nimbly implement necessary changes and successful enough to have the financial means to execute its change strategy.

The Challenge

In any organization, some employees will resist change, and the credit union was no exception. When the CEO joined the credit union, he replaced a person who had been there for 27 years. Employees were shocked and the cultural antibody of the “we’ve always done it this way” mentality emerged. Obstacles needed to be overcome before real change could be achieved.

The Solution

The first step was to gauge the organization’s readiness for change, which was accomplished through IRI’s Issue Identification and Improvement (I3®) Assessment.

Through the assessment, management openly addressed employees’ concerns and honestly explained what needed to change and why.

In an executive off-site meeting facilitated by IRI, a three-year business plan was developed, which focused on the following change strategies:

  • Restructuring of the organization
  • Construction of a new facility, designed as a financial mall
  • Fostering a sales culture
  • Redesigning the core process and technology integration plan
  • Training and staff development

For each of these change strategies, departmental and individual plans were created to align with the overall organizational objectives.

The Results

To restructure the credit union, overlapping departments were streamlined from seven to five distinct specialties that allowed them to lead more dynamically and with greater communications. A new human resources manager was enlisted to create and administer integrated HR solutions.

The credit union now operates from a 38,000 square-foot headquarters, and has seen a 20 percent increase in membership and a 44 percent increase in assets under management. Due to extensive education and training (and a well-received employee incentive plan), the credit union effectively developed a sales culture that identifies opportunities and presents those opportunities to customers in an engaging, non-threatening manner. One of the biggest contributors to the credit union’s phenomenal growth in assets is its redesigned loan process. Previously, a 300-step process took more than 24 hours to complete; a new automated process takes 20 minutes and has added the capability to apply for over the telephone and via the Internet.

Go to top