ODESSA, Texas — With the Cornerstone Credit Union League — the combined league for Texas, Oklahoma and Arkansas — now officially one year old, the league held its annual conference this summer, where it recognized its first-ever "Volunteer of the Year," Kris Crow, chairman of the board at Southwest 66 CU here. Crow offers his insights into trends such as the consolidation of state leagues and paying "volunteers," board-management relationships, and much more.
CUJ: Congratulations on being named the Cornerstone League's first-ever "Volunteer of the Year." Cornerstone, as you know, is a combination of what had previously been three state leagues. What are your thoughts on the consolidation we're seeing throughout state leagues?
Crow: I feel that the consolidation of the state leagues is very progressive and transformational. As with any organization or team, it is much easier to succeed when team members work together. By combining state leagues, a greater efficiency is usually achieved. The best and brightest of each league are assembled into a cohesive, top-notch unit with a single vision. The vision of credit unions has always been to be goal-oriented, member-focused, and results-driven. By combining leagues together as Cornerstone has done, that vision is amplified. I would say Cornerstone should be the model for this. They have pulled out the consolidation flawlessly and made all of our credit unions better for it. The Juntos Avanzamos program is a great example of being able to extend an amazing initiative into states that did not have the resources to do it on their own. Together we advance.
CUJ: On the subject of volunteerism at credit unions, what do you think of the trend taking place as more and more states give the "OK" for credit unions to begin to compensate their boards? Is this a natural progression, or does the notion of paid "volunteers" begin to dilute the cooperative spirit that credit unions are founded upon?
Crow: Credit unions have always been member-owned, and member-led. As such, all credit unions are directed by volunteers. As more states give their blessing to credit unions to compensate their boards, I believe that this natural progression will continue and should continue. With that being said, I believe that directors should receive a minimal or moderate stipend. This "compensation" should not be intended to supplement (or especially not replace) a director's income. I have noticed over the years that a minimal incentive to attend board or committee meetings goes a long way to entice volunteers and ensure that a board will have a quorum for their meetings. This small incentive also encourages more sough- after or desired community and business leaders to step up and volunteer their valuable time when other volunteer organizations are vying for their attention. I am not saying that the local food bank is not a worthy organization for which to serve, but credit unions need to attract volunteers that have experience and knowledge understanding financials, setting budgets, creating policies and procedures and dealing with upper management issues. Together we advance.
CUJ: What's your strategy when it comes to working with senior management? How can board members make that relationship both effective and productive?
Crow: Our strategy in dealing with senior management of a credit union has always been to select a true leader that other people are drawn to and then step back and let them lead. I believe that most credit union boards micromanage their leaders to the point that they are no longer leaders. The functions of a credit union board are to hire a great leader, create policies and procedures for the organization to follow, set the financial guidelines (budget), and then follow the results. A good board must trust its leader but always verify what they receive from that leader. Board members can be most effective by simply being a consultant to the leaders that they have selected. The best board members are open, honest and always transparent to senior management so that it is easy for that management team to absorb the knowledge, experience and expertise that each board member brings to the table and pass it on to their staff. Together we advance.
CUJ: Give us a sense of what makes the Odessa credit union market unique, and tell our readers what you've done to try to capture that market?
Crow: As a credit union, Southwest 66 is truly blessed to be part of the Odessa, Texas community. Our market is unique in that we are benefiting from one of the best economies in the United States. Recent statistics show that the city of Odessa is benefiting from a record number of single-family housing starts, record-high property valuations, record-high average weekly wage ($1,110 at 4th quarter 2013), and one of the lowest unemployment rates in the country (2.90% as of April 2014). We combine this with the philosophy of our local Permian Chapter of Credit Unions that by working together we can lead our community to the next financial level.
Recently Southwest 66 has introduced our community to cutting-edge initiatives such as Borrow and Save products and affinity debit cards. We have taken a strong leadership position in our Hispanic marketplace with our Juntos Avanzamos program. We are merging our strengths with the strengths of other credit unions is our community to create a new business lending CUSO to help support the growth and prosperity our business community. Together we advance.
CUJ: With credit unions having just passed the 100-million member mark, according to data from CUNA, what do you see as being the next milestone for credit unions? Is it simply 105 or 110 million members? Or is it something harder to quantify?
Crow: As credit unions continue to serve their communities with a true spirit of giving back and service, I feel that the 105 or 110 million mark won't even be a stepping stone. As credit unions continue to educate their members and their communities on the model of financial "mutuals" and the credit union philosophy of "people helping people," the credit union movement in our great country is going to explode in a method that is going to be hard to quantify. I think that most people are really tired of being an account number or a figure at the bottom of a balance sheet that pertains to a stock price. People want to be part of something that is bigger and that takes on a life of its own. The credit union movement here in Texas, here in the Cornerstone Credit Union League, and here in the United States is a living, growing, breathing companion that will only give back to those that feed it and support it. Together we advance.
CUJ: What must credit unions do to ensure that they can attract and retain the next generation of both members and employees?
Crow: To ensure not only the growth, but the healthy growth of our members and employees, credit unions must be willing to educate, support, adapt and change. Credit unions of 2014 are not the same as credit unions of 1959. Credit unions must be willing to listen to their members. Boards must be willing to stretch their comfort zones. Directors must be willing to remove that old tired phrase of "but this is how we have always done it." Just because it worked for the last three decades does not mean that it will work for the next one.
Education is the building block of both credit unions and communities. Good leaders train their staff to take over their duties and to retrain for new duties. A knowledgeable employee is a team member that is always confident that they can help a member to solve any problem that is thrown at them. A member who is served by a confident employee will always be a happy, enthusiastic and satisfied member that will tell everyone that they know about their experience. Together we advance.
