ANAHEIM, Calif.-If a credit union is looking to have an innovative environment, it may need to consider hiring people who march to a different drummer.
That was the message from Shari Storm, SVP for $404-million Verity CU, Seattle, which won an Innovator of the Decade award in 2010 from Net.Banker. Storm said the credit union has created an environment that leads to bold, fresh ideas because everyone in the organization is encouraged to express themselves.
"It is important to formalize the ideation process," she told attendees of the recent CUNA HR/TD Council Conference here. "At Verity, every month three top executives sit down and listen to employee ideas-because innovators can come from all sections of the credit union. Ideas are submitted all month long, submitters are asked to talk about the idea. If an idea is implemented, that person gets $150."
The ideas often are small, she said, but they can add up to savings.
Being creative, innovative and inventive are three different concepts, Storm said. Creative is the ability to create something, such as art or music. Innovative is acting on the creativity in a way that brings success to a business. It has to be an executable idea, she said, adding it is great to have brainstorming sessions-which are another example of creativity-and then take the one or two executable ideas and turning them into something.
Inventive is creating something completely new. Most creativity is not inventive, she said.
"Surround yourself with innovative people who have diverse interests," she urged the audience. "During the hiring process, ask candidates their opinions about the future. People who are innovative spend time thinking about the future. They have a low fear of failure, and are persistent and tenacious."
Innovators are good communicators, Storm continued. Ideas take a lot of care and feeding, so they need someone to be able to sell them to everyone in the organization. She advised CUs to develop an environment of experimentation-meaning fail fast and forward-and copy Costco's philosophy of trying a lot of products, keeping what works and getting rid of what does not.
"Sometimes a credit union has to try things that do not work," she said.
Credit unions are "great" in that they "share ideas like crazy," but according to Storm, what can be bad is everyone in the movement tends to listen to the same people, so the ideas are "incestuous."
"Avoid the great echo chamber," she said. "Be sure to take ideas from outside the industry. If credit unions only listen to people who think like them, they are missing out on a lot of possibilities."
And while looking outside of credit union land, look for trends that could eventually have an impact on the credit union. A perfect example, she said is the trend toward legalizing marijuana.
"To fail often means to succeed sooner," she said. "Do an association exercise. What would it mean to our credit union if... for example, marijuana is legalized in our state? Would the credit union open accounts for dispensaries? What would it mean as HR people who have to do hiring?"
