SEATTLE — Paul Seibert said there are many rational ways to cut costs, but stresses the importance of looking at both the short- and long-term effects. Among his suggestions:
• Conduct strategic branching plans to understand how to enhance branch and market efficiency to increase profitability. "These may result in closing branches or in taking other measures to enhance performance," he said.
• To reduce operating expenses with current facilities, ask many, often difficult, questions. "Are branches overstaffed? Can you change the operating hours without impacting member satisfaction? Can some staff functions be replaced with automation such as cash services? Can the branch be downsized and a portion leased to others? Does every branch need to provide the same level of service and staff expertise? Can some services be centralized? Can the phone center take on more member contact responsibility allowing branches to be smaller in size and locating phone center staff in less costly space?"
• Be aware relocating workloads rather than streamlining can be a pitfall. "The most successful credit unions in the future will strive to create knowledge workers rather than process workers," he said.
• Ask if more services be handled online.
• Consider lease-backs? "Does it make financial sense to sell your existing headquarters or branches and then lease back with an option to buy in the future? Likely not, but some credit unions have used this technique to raise capital."
• Are even the smallest expenses being examined? "Can branches stop providing water bottles and provide a water dispenser or a drinking fountain? Can the sprinklers be turned off in the rain? Is the lighting high efficiency? Can the heating and cooling system be improved to reduce energy cost? Can automatic light switches be installed to turn off lights when no one is in a room?" he asked.
