ST. LOUIS -
"We have one customer that has 15 to 20 locations, and they are trying to get on a cycle where they are refreshing four to five branches a year," noted Dupree Davis, EVP of HBE Financial Facilities, a division of HBE Corp. "They had to come up with a strategic plan to set up that cycle."
And while many things that go into a branch are designed to last for 20 or 30 years, Davis suggests doing a yearly evaluation of each branch to make sure everything still looks as it should.
"If you build a new branch, in about five to seven years you are going to see some wear and tear on your carpet, for example, or marks on the walls. We have one customer that has just accepted that they need to put in new carpet about every five years. In fact, the IRS devaluation on carpet is five years, so you may as well," Davis advised.
But it's important not to let the cycle dictate everything. A change in charter, field of membership, delivery method/platform or culture, for example are all things that can and should disrupt that cycle and bring renovation or refurbishing to the forefront of the credit union's priorities, he said.
CUJ Asks The Experts
Among Dupree Davis' tips for refreshing a branch:
* Let in light. "In older buildings, you usually don't see a lot of windows, but today credit unions want to be able to see their members as they're coming in the door," he noted. "Put in more windows and create a more open feeling to the member."
* Focus on high-impact areas, such as entrance ways or anywhere there is a lot of member interaction.
* Start with the view from the top. "You need to set the scope of what you want to accomplish overall, then go site by site to determine what needs to be done or what can be done at each location," he suggested.
* Go "all in." "You don't want to tear down the walls this year, then do the awnings the next year, and then tackle something else the next year-it's too disruptive, and nothing ever feels done," Davis advised.
* Consider both the level of need (the older the branch, for example, the more likely the need for refurbishing is high) and the level of profitability when determining both where and when to invest your money in revamping your locations.
* Some things can't be fixed by renovating, no matter how much you're willing to spend. "If a branch is in the right location, but it's on the wrong side of the street [for traffic flow, for example], it's never going to be right," he said.
FOR MORE RESOURCES
For info on this story:
* www.lamacchiagrouop.com
* www.kdaholdingsinc.com
* www.hbecorp.com
* www.pwcampbell.com
