MOLINE, Ill.-For a credit union to get more business from its members, it has to get more out of its employees first.
That philosophy has helped DHCU Community CU attain 65% profitable members, improve to 2.3 services per household, and land in the 75th percentile among its peer group in Raddon Financial Group's ratings, all of which earned it a Crystal Performance Award from the strategic planning and research company.
"Eight years ago we were ranked by Raddon in their 43rd percentile," CEO Terry Brahm explained. "We had 35% profitable members and less than two products per household. "We knew we had to do something."
To turn things around the $412-million DHCU looked inside its walls. Holding to the thinking that it's less costly and more profitable to grow from within your existing membership, Brahm said he knew the approach would only work if employees were properly trained.
And the key to training, according to the CEO, was making sure staff see the "big picture. We are only as good as our employees, and if they don't understand how they fit into this big gear-how they, their department, and their branch help us be successful-they won't be as effective selling our products and services. Something just seems to click with employees, and they become more effective when they see how selling that checking account or CD helps the credit union reach its goals."
'State of the Credit Union Address'
To make sure employees understand those goals and the CU's strategies for achieving them, DHCU holds a "state of the credit union address" twice a year. "We bring in all 100 employees to our main branch before we open up," Brahm said. "And we don't open until 11 that day. I give the state of the credit union address and we do some education and training."
Ongoing product and service training, Brahm said, gives employees the tools to build stronger relationships with members. "We teach our staff to look for opportunities where we can help our members."
That doesn't always mean selling an additional service, according to Brahm. It can also mean adding to a CD or expanding a loan. "We don't hang our hats so much on services per member or household. It's more about account usage and what's in the account," Brahm said. "You can get anyone to take your checking account, but it's more challenging to get them to use it."
The credit union has improved from having 40% of its members with an active checking account in 2001 to 65% today.
Overall, Brahm believes the business approach builds sustainable results. "We do not chase the product of the month. We are in the relationship-building business. Our mission is to improve the economic wellbeing of our members and the quality of their lives, and that does not get accomplished by running a 3% one-year CD. My job is to run an efficient operation to meet members' financial needs, not waste money in doing it, and build business that lasts."
