ORLANDO, Fla.-Attendees at this year's Grow Show learned how one CU went from consecutive losing years in which it posted $300,000 in total losses to dramatically turn things around and show a $1-million net gain two years ago.
Pioneer West Virginia FCU, Charleston, W. Va., quickly pulled itself out of a tailspin in 2009-2010 by making some dramatic changes.
The startling turnaround is the result of a credit union that essentially started over, with the board making the difficult choice to bring in a new management team. Dana Rawlings took over as CEO in July 2010, and then hired SVP/CFO Dan McGowan two months later. Under new leadership dramatic operational changes were made. These included:
A new metrics system to allow the CU to know each day where it stood in key performance categories; rebranding Pioneer West Virginia; shoring up the CU's delinquencies; and growing loans backed by creative new lending products, including a 10-year first mortgage.
Flipping The Culture
The internal culture was flipped 180 degrees, from one that did not value employees to one that sees employees as the credit union's most valuable asset.
McGowan told attendees that was likely the most important change made. "We began valuing employees and rewarding them for their performance, recognizing their work and accomplishments, and encouraging feedback all the way to the top of the CU."
Salaries, too, were improved significantly as well as the employee benefits package.
McGowan said the CU went from being a "joke" in the community to being one of the most highly respected FIs in the state. One example: it recently posted a branch manager's job and pulled in 10 resumes from local bank branch managers. "They told us they didn't care if it was a lateral move. They just wanted to work for an organization that is highly respected and is really growing."
