PHOENIX-There are many opportunities for CUs to cut expenses, from improving project management to greater efficiencies, according to Bob Parks.
Park, who is with the Financial Institutions Group with the firm Doeren Mayhew in Troy, Mich., told attendees of the recent CUNA CFO Council Conference here every aspect of project management should be under the microscope.
To get that closer look, questions that should be asked include How are projects defined? What is the approval process? How are projects prioritized? How are responsibility and accountability assigned? How are projects tracked? For each project, are there defined milestones? What happens when milestones are not met? What is the tone-are due dates just suggestions? Or are they firm?
"Credit unions also have to ask, when is a project killed?" he said. "There are some necessary endings. Belief in the success of a project is not always based on strong evidence, it can be based on a hunch by the project champion. It is important to be aware of the politics involved in seeing a project through, including whose buy-in is needed."
Old Assumptions, New Questions
Some CUs are still beholden to common historical paradigms, such as "good member service requires expensive space. Everyone must be in the same location for collaboration. Supervisors must be in the same location as workers. And, earnings growth requires room to expand."
"Today, businesses realize everyone does not need to be in one space," Parks reported. "Call centers and IT often are housed elsewhere. When acquiring or retrofitting existing space, consider how space is used.
Parks shared thoughts on a number of other topics:
Mergers: If a merger is not already on a CU's radar, it should be part of a strategic plan, Parks declared. "The right merger makes sense. There are many qualitative benefits that translate into economies of scale."
Outsourcing: Third parties can provide expertise at a reduced cost without overhead or office space. This can include affiliation with a CUSO that has expertise in a particular service, including mortgages, business lending and indirect lending.
Contracts: Contracts have been examined heavily in last five years, but there still are ways of gaining efficiencies, he said.
Marketing: One money-saving option is switch to less expensive channels. CUs can easily build an e-mail database and send offers directly to existing members at low cost.
