SPOKANE VALLEY, Wash. — Thanks to the introduction of a project-management tool that allows for two-way communication throughout its organization, $1.2 billion Numerica Credit Union has improved results in nearly every measurable category.
CEO Carla Altepeter said prior to her taking over the helm at Numerica in September 2011, the CU had a "top down" style of management. "Employees, except those at the very top, had no voice," Altepeter said. "We were a culture of silos due to the lack of information flow and poor teamwork. Project management was conducted through one person who, though fantastic, could not handle the volume. As a result, projects were backlogged and our competition was out performing us in growth."
Another aspect of Numerica's internal culture that Altepeter changed upon her arrival was an emphasis on reactive member service, with a focus on recovery from issues and errors, rather than proactive. "This stressed out our staff and was not a productive long-term strategy," she said. "You can only recover so many times before it affects member satisfaction."
In a previous credit union position, Altepeter had worked with Cardwell's Connections Online (COL) strategy execution tool. After a demo the Numerica senior management team decided to use the product for increased alignment, accountability, performance management and project management.
COL has been the "nucleus" for improvement, according to Altepeter. She described it as a "complex system that allows us to have strategies and goals aligned with the organizational goals," and it goes down to reach each individual at the CU.
"Everyone can see what projects everyone is working on, and we update measures on a monthly basis," she said. "The system allows us to communicate well, which is key. This gives employees power to see where they fit in the organization overall and into our critical measures."
The transparency of the system allows Numerica to break down silos. Altepeter said not only does each department know what others are working on, the CU uses cross-functional, multi-level teams for project work. "It drives performance more than it saves money," she said. "Getting these other voices involved in projects really helps. It slows things down a little, but the addition of other voices improves the quality and means we do not have to go back and fix things later."
Positive Results
Asked where all this communication and transparency has paid off, Altepeter reported that the results are positive across the board. Numerica is on target for loan growth of 19% for 2013 over 2012, which she noted is especially impressive because in 2012 it had 21% loan growth over 2011.
Of 16 critical measures Numerica tracks on a monthly basis, through September nine are more than 10% over the annual budget, three are at budget, two are at minimum requirements and one it is not going to meet, she reported.
"I have not seen a time where we had that many in the exceed column. It has been a phenomenal year, especially in loan growth. Our goal for net loan growth $84.7 million, we currently are at $119.3 million through Sept. 30. Our ROA goal was 1.04% and we are at 1.35%."
According to Altepeter, management and the board attribute Numerica's growth not only to its "great people," but having "everybody in alignment knowing what our goals are."
"Each department member meets with managers on a monthly basis. Everyone is constantly talking about what we are working on."
In the first 10 months of this year Numerica has completed 17 organizational-wide projects, which are projects involving more than two departments. One was a branch redesign, which involved quite a number of departments plus consultants. It was led by the facilities team, but Altepeter said the COL system's project management capabilities helped everyone understand the scope and the measurables from beginning to implementation. The project was done on time and on budget, she said.
"I am happy with the engagement of the employees and the ability to have solid communication. If there is anyone in the organization who does not know where we are going it is because they have not gone online and looked. There is a lot of power in this alignment.
"It is phenomenal what we are able to do with a talented staff that is engaged thanks to a system that lets everyone know the common goals," she added.
