Credit unions are as complex as any business in a highly regulated industry. With the federal government taking major steps to retool the regulations for these businesses in 2016, it's even more vital now for CUs to manage their risks and promote efficiency.
As someone who works with consultants hired by CUs and financial institutions, I've seen that plenty of systems and services exist to meet those two objectives but that one process will enhance them more than anything else: communication.
Communication is doubly important in the not-for-profit space because these companies exist to make an impact on the world. With a CU, this means making sure that all partners, vendors and employees are aware and aligned with the core values of the organization. Just like the president of the CU, they must understand the vision, people, data, issues and processes around the business.
The Enron scandal of the early 2000s was national news, and opinions on the driving force behind it abound. But a study of the issues leading to the company's collapse identified a number of "communication-based leader responsibilities" unmet by managers. While your CU may not be the next Enron, the responsibilities are the same: Communicate your organization's values, and be open about potential problems.
A failure to properly communicate, however, could land your business in real trouble with regulators. Credit unions operate in a highly regulated space. Without clear communication to all parties about these regulations, you could end up with fines, penalties, or even potential shutdown — all because one employee didn't understand some regulations.
Gino Wickman, author of "Traction: Get a Grip on Your Business," writes that you must organize all the moving parts of the business into one holistic system that brings the service to customers with excellence. This is a great concept for a CU, where everything is about serving members and bringing them what they need, regardless of profit.
Shoring Up Communication to Improve Process
There's no doubt that processes separate good business from bad. But after a decade or more of trying dozens of technologies, I can promise that process is only as good as the people behind it, and those people can be empowered only by great communication.
As you work with partners, vendors, and employees, be intentional about how you communicate on each level. Consider these five basic steps:
1. Clarify. What is the goal of the communication? Are you trying to explain the latest regulation or a new customer-service process?
We've all seen managers who send out large communications filled with all kinds of important information, which is seriously ineffective. After all, people can process only so much information at once. Keep communications focused on only one topic with each post, and make clear why it's being communicated.
2. Deliver. Once you know why you're communicating, deliver the message as clearly and concisely as possible. Relate the message to larger goals, and identify any action that should be taken.
Remember that communication styles are different for each employee, and it's your job as the manager to ensure stakeholders fully understand the impact of your message. Confirm with them that they understand what you're saying and what needs to happen.
3. Receive. Not every message you communicate will bring the warm fuzzies, and not every receiver will connect with it as clearly as you hope.
Stay open to criticism and critique, especially if processes are changing. Value feedback, listening specifically for how you can better articulate your message. When necessary, circle back to the main points and reasons for your communication until all stakeholders are on the same page.
4. Act. What corrective action is needed? If you sent out an email that seemed unclear to the majority of recipients, consider holding a training meeting or conference call.
Not all of your good intentions will land on target, so keep your focus on finding new and better ways to relay information to interested parties.
5. Evaluate. How effective was the effort to communicate? Ask yourself what went right or wrong.
This is also a good time to bring in trusted stakeholders and seek their feedback. You want to be careful not to open the floor to anyone who may be having a bad day, but there are always people who will give you honest criticism to help improve process and communication for next time.
For credit unions in particular, good communication among stakeholders is one of the single most important determinants of success. If you feel that your communication style is not as high-quality as it needs to be, don't wait another day to address it. Just a few simple adjustments can smooth out and streamline the effectiveness of your organization for years to come.
Sona Jepsen is the global head of consultant relations at Fidelity National Information Services (FIS). Her team drives communication between industry consultants hired by mutual clients and FIS' global sales team.
