Trick or Treating for Members

A funny thing happened at my son's gymnastics class. I mean, let's face it, a TON of things were funny about gymnastics - imagine 18 toddlers between the ages of 18 months and three years tumbling on dance mats, jumping on trampolines, walking through an improvised "haunted house," and chasing each other with fake snakes, spiders, and bugs.

No, the funny thing that inspired this post was what the instructor handed us as we walked out. Miss Brittney handed each child an orange legal-sized sheet of paper with twelve "Free Class" passes printed on it to hand out for Halloween. Production cost? Maybe $1. Possible reward? 216 new paying customers and $11,800 in recurring monthly revenue. Put that in your ROI pipe and smoke it.

The beauty of this idea goes well beyond its price tag and simplicity. Think about how well Salem Gymnastics Sports Center has targeted its audience. Who will be receiving these passes while trick-or-treating? Where do they live? How likely is it that this pass will stick out in a jack-o-lantern full of candy?

Why not go trick-or-treating for members? Would your members be willing to be your credit union's evangelists this weekend? Do you have a compelling offer that will appeal to parents of young children in your members' neighborhoods?

What do you have to lose?

Become an Ex

Just before tonight's Monday Night Football game, I saw an interesting ad. A woman was sitting at her office desk talking on the phone while simultaneously mixing an adult beverage. As she walks out with her freshly-mixed daiquiri, the narrator says "You don't drink every time you smoke... So why do you smoke every time you drink?"

The message is simple. Eliminate the triggers that create your urge to smoke, and you can kick the habit.



The campaign is a product of the American Legacy Foundation, a collaboration of organizations dedicated to helping people quit smoking. Its web presence (built with Ning) is simple, yet effective. There, you can learn about smoking triggers, nicotine addiction, and success stories from peers. You can network with others who are struggling just like you, set a quit date, and track the cigarettes you smoke (and what triggered them). The 3-Step process is: 1) Re-learn your habit; 2) Re-Learn your Addiction; and 3) Re-Learn Support.

I'm not a smoker, but this program really captures my attention. It's brilliant in its simplicity, and 100% applicable to what most of us are trying to do at our credit unions: improving human behavior.

Could we inspire people to "Become an Ex" bank customer? What are the trigger points that cause people to, despite excessive fees, distrust, and dissatisfaction, continue to flock to goliath banks? Is it inertia? A habit? Apathy?

Could we encourage people to "Become an Ex" spendaholic?

Could this be our national brand?

The Box in the Garage

He was there all along. The "boy in the balloon," as we now know him, traveled nary a few dozen steps to the attic in his family's garage, and simply hid in a box.

The rest of us were looking skyward at a weather balloon about which Area 51 would be proud. We wondered if the cute little boy with the eccentric parents had survived. Was he in the balloon? Had he fallen to his tragic death?

We were so preoccupied with what was high up in the sky, we ignored what was right under the Heene family's collective nose.

We shouldn't be surprised by this phenomenon. It's nothing new. The drama, imagination, and potential tragedy that was unfolding live on television of a balloon floating through the sky was much more interesting than the story of a boy safely hiding in a box. That's why it grabbed our attention so firmly.

We've wasted so much energy in the last 12 months worrying about corporate credit union investments, the Credit CARD Act, alternative capital, a decline in consumer loan demand, and surging loan losses, that I wonder if as a whole we have maybe lost sight of what's right under our noses. As credit union leaders, we have no choice but to think about worst case scenarios, the realities of the economy, and the uncertainty of an ever-changing regulatory environment. We'd be irresponsible if we didn't. But we also have to make sure our focus isn't stolen from us by the extraordinary.

There's a box in the garage that deserves much more attention.

Waiting on Perfect

I see it all the time. Heck, I live it. Too many of us are waiting on perfect. We wait for the perfect idea. The perfect opportunity. The perfect applicant. The perfect proof.

We spend so much time waiting on perfect, that we miss the good, the great, and the fascinating. One of the few things more boring than perfection must be the quest for it.

How about, starting today, you make a change? Instead of criticizing, scrutinizing, and dismissing the imperfect, why not decisively pursue the really good? Vigorously improve the good to be great. Continuously tweak the great. You'll never reach perfection this way, but you'll be a lot more successful than if you were to keep on waiting on perfect.

Painting Ourselves into a Corner

I saw an infomercial today for Point 'n Paint, an amazing little gadget that allows you to "paint an entire room in less than an hour." As someone who has done his fair share of painting, I watched with great interest as the commercial demonstrated how this "best edger ever" gets "perfect results every time." To think, I could have saved hundreds of dollars, countless work hours, and three quarters of my sanity had I simply known about this $19.95 painting innovation.

As great as this gadget looks, there is no way in Albuquerque I'm going to buy one. Here's why:

1. I don't trust the message. It looks too good to be true (and turns out it probably is based on the reviews here and here [warning, foul language]). Painting sucks. If you tell me that you can make it not suck, I don't believe you. Tell me that you'll make it suck less, and you have a shot. But, it will ALWAYS suck.

2. I don't trust the salesperson. I don't know a thing about Anthony Sullivan except that I don't trust him. He looks like a con artist, and sounds like a con artist. The last time I bought something from a guy like him, I ended up with a tub of OxiClean that is just this side of useless.

3. I don't trust the medium. Infomercials are sketchy. You could have the most legitimately useful product on the planet at the perfect price, but the second you use an infomercial to sell it I go into full skeptic mode. The ads are cheesy. The settings are typically fake. The "demonstrations" are unreliable. You could be selling $50 bills for $19.95 with an infomercial, and I would probably still turn the channel.

The amazing thing? This is a $19.95 purchase. Think about what goes through consumers' minds when they see financial services marketing, where trust means everything and the price tag is much higher than a sack full of Sham-Wows.

Say, for the sake of argument, that Point 'n Paint is the biggest innovation to hit the painting world since Bob Ross. Their marketing is more suitable for a county fair midway than a Home Depot sales floor. Its marketing team sacrificed credibility and trust for quick sales. I'm not buying it, and chances are you aren't buying it either. At least not because of an infomercial.

True innovations get noticed by thought leaders. I'd buy it when my best friend's painting company decides to toss out his paint rollers in favor for this product. I'd buy it if I saw David Bromstad use it on his show because it saves him tons of time and works well.

Is your credit union painting itself into a corner with its marketing? Are you searching for a quick sale, or a relationship? Are you the one saying "But wait, there's more," or are you giving members reasons to tell their networks for you?

Management Changes: Knowing When to Say When

The Tampa Bay Buccaneers, Kansas City Chiefs, and Buffalo Bills decided to fire their offensive coordinators before the 2009 season. This isn't that uncommon in the National Football League. General Managers, Coordinators, and Head Coaches are paid something in the neighborhood of Russia's Gross National Product to be responsible for getting many millions of dollars worth of assets (players) to perform well enough to fill the stands, sell merchandise, and keep fans interested in the franchise they represent. These are high risk, high reward positions that can earn the incumbents many millions of dollars and the respect of the masses, or a sudden pink slip and a one-way ticket on the next thing smoking.

What is uncommon, however, is firing such high profile/impact personnel in the middle of preseason -- mere weeks before the regular season is to begin. That's exactly what these teams did. Some sportswriters praised the moves. Bucky Brooks said, "The unexpected dismissals of three offensive coordinators on the eve of the regular season has unquestionably rankled the NFL landscape, but the preseason is an evaluation period, and even assistant coaches can't escape the scrutiny of evaluators looking to field winners in 2009."

Winners in 2009, eh? So far, the Buccaneers, Chiefs, and Bills are a combined 1-11. The only win enjoyed by this group of under-achievers came when the Bills defeated the Buccaneers in week 2. In effect, these teams are 0-10 against teams that did not fire their offensive coordinator in the preseason.

My take? Managers are only as good as their last "season." They deserve huge rewards when they succeed, and deserve to get canned when they don't. That said, a change in leadership is not something you can approach on a whim. You can't spend an entire preseason training your team a particular style of play, using a specific leadership style, and making personnel decisions to support those styles, then completely change course when the bright lights of the regular season get turned on. There certainly are examples of mid-season management changes in sports that have worked out swimmingly, don't get me wrong. But often, these in-season moves simply make bad situations worse. Major management changes should only take place, barring blatant misconduct or mutiny, after the conclusion of a season. Preferably, such a move should be made as quickly as possible to maximize the preparation time for the replacement manager going into the following season.

At credit unions, we don't have set seasons. Sure, we have annual and sometimes semi-annual reviews. We host planning sessions with our boards. We have board meetings on at least a quarterly basis. Is that enough? How can you organize your credit union's operations into seasons so you can reward managers who are productively leading your team in the right direction? How can you replace non-performing managers with as little disruption as possible?

Answering these questions properly may be the difference between steering your team in the right direction...and another disappointing season.

The Keith Leggett Watch - Part Deux

Keith Leggett is at it again. It seems that he wants his nineteen readers to read about every single credit union failure as they happen. His most recent post celebrates the failure of Victorville, California's Members' Own FCU.

Let's see...

National Bank of Commerce, Berkeley, IL., January 16, 2009
Bank of Clark County, Vancouver, WA., January 16, 2009
1st Centennial Bank, Redlands, WA., January 23, 2009
Ocala National Bank, Ocala, FL., January 30, 2009
Suburban FSB, Crofton, MD., January 30, 2009.
MagnetBank, Salt Lake City, UT., January 30, 2009
County Bank, Merced, CA., February 6, 2009
Alliance Bank, Culver City, CA., February 6, 2009
FirstBank Financial Service, McDonough, GA., February 6, 2009
Pinnacle Bank of Oregon, Beaverton, OR., February 13, 2009
Corn Belt Bank & Trust Co. Pittsfield, IL., February 13, 2009
Riverside Bank of the Gulf Coast, Cape Coral, FL., February 13, 2009
Sherman County Bank, Loup City, NE., February 13, 2009
Silver Falls Bank, Silverton, OR., February 20, 2009
Heritage Community Bank, Glenwood, IL., February 27, 2009
Security Savings Bank, Henderson, NV., February 27, 2009
Freedom Bank of Georgia, Commerce, GA., March 6, 2009
TeamBank, NA, Paola, KS., March 20, 2009
Colorado National Bank, Colorado Springs, CO., March 20, 2009
FirstCity Bank, Stockbridge, GA., March 20, 2009
Omni National Bank, Atlanta, GA., March 27, 2009
Cape Fear Bank, Wilmington, NC., April 10, 2009
New Frontier Bank, Greely, CO., April 10, 2009
Great Basin Bank of Nevada, Elko, NV., April 17, 2009
American Sterling Bank, Sugar Creek, MO., April 17, 2009
American Southern Bank, Kennesaw, GA., April 24, 2009
Michigan Heritage Bank, Farmington Hills, MI., April 24, 2009
First Bank of Beverly Hills, Calabasas, CA., April 24, 2009
First Bank of Idaho, Ketchum, ID., April 24, 2009
America West Bank, Layton, UT., May 1, 2009
Citizens Community Bank, Ridgewood, NJ., May 1, 2009
Silverton Bank, NA, Atlanta, GA., May 1, 2009
Westsound Bank, Bremerton, WA., May 8, 2009
BankUnited, FSB, Coral Gables, FL., May 21, 2009
Strategic Capital Bank, Champaign, IL., May 22, 2009
Citizens National Bank, Macomb, IL., May 22, 2009
Bank of Lincolnwood, Lincolnwood, IL., June 5, 2009
Fist National Bank of Anthony, Anthony, KS., June 19, 2009
Cooperative Bank, Wilmington, NC., June 19, 2009
Southern Community Bank, Fayetteville, GA., June 19, 2009
Mirae Bank, Los Angeles, CA., June 26, 2009
MetroPacific Bank, Irvine, CA., June 26, 2009
Horizon Bank, Pine City, MN., June 26, 2009
Neighborhood Community Bank, Newman, GA., June 26, 2009
Community Bank of West Georgia, Villa Rica, GA., June 26, 2009
First National Bank of Danville, Danville, IL., July 2, 2009
Rock River Bank, Oregon, IL., July 2, 2009
John Warner Bank, Clinton, IL., July 2, 2009
First State Bank of Winchester, Winchester, IL., July 2, 2009
Elizabeth State Bank, Elizabeth, IL., July 2, 2009
Millennium State Bank of Texas, Dallas, TX,July 2, 2009
Founders Bank, Worth, IL, July 2, 2009
Bank of Wyoming, Thermopolis, WY, July 10, 2009
Temecula Valley Bank Temecula, CA, July 17, 2009
Vineyard Bank Rancho, Cucamonga, CA, July 17, 2009
BankFirst, Sioux Falls, SD, July 17, 2009
First Piedmont Bank Winder GA,17-Jul-09
Security Bank of Bibb County Macon GA,24-Jul-09
Security Bank of North Metro Woodstock GA,24-Jul-09
Security Bank of North Fulton Alpharetta GA,24-Jul-09
Security Bank of Gwinnett County Suwanee GA,24-Jul-09
Waterford Village Bank Williamsville NY,24-Jul-09
Security Bank of Jones County Gray GA,24-Jul-09
Security Bank of Houston County Perry GA,24-Jul-09
Integrity Bank Jupiter FL,31-Jul-09
First State Bank of Altus Altus OK,31-Jul-09
First BankAmericano Elizabeth NJ,31-Jul-09
Peoples Community Bank West Chester OH,31-Jul-09
Mutual Bank Harvey IL,31-Jul-09
First State Bank Sarasota FL,7-Aug-09
Community National Bank of Sarasota County Venice FL,7-Aug-09
Community First Bank Prineville OR,7-Aug-09
Union Bank, National Association Gilbert AZ,14-Aug-09
Dwelling House Savings and Loan Association Pittsburgh PA,14-Aug-09
Colonial Bank Montgomery AL,14-Aug-09
Community Bank of Arizona Phoenix AZ,14-Aug-09
Community Bank of Nevada Las Vegas, NV,August 14, 2009
First Coweta Bank, Newnan, GA, August 21, 2009
Guaranty Bank, Austin, TX, August 21, 2009
CapitalSouth Bank, Birmingham, AL, August 21, 2009
ebank, Atlanta, GA, August 21, 2009
Bradford Bank, Baltimore, MD, August 28, 2009
Mainstreet Bank, Forest Lake, MN, August 28, 2009
Affinity Bank, Ventura, CA, August 28, 2009
First Bank of Kansas City, Kansas City, MO, September 4, 2009
InBank, Oak Forest, IL, September 4, 2009
Vantus Bank, Sioux City, IA, September 4, 2009
Platinum Community Bank, Rolling Meadows, IL, September 4, 2009
First State Bank, Flagstaff, AZ, September 4, 2009
First Bank of Kansas City, Kansas City, MO, September 4, 2009
InBank Oak Forest, IL, September 4, 2009
Platinum Community Bank, Rolling Meadows, IL, September 4, 2009
Vantus Bank, Sioux City, IA, September 4, 2009
Corus Bank, Chicago, IL, September 11, 2009
Brickwell Community Bank, Woodbury, MN, September 11, 2009
Venture Bank, Lacey, WA, September 11, 2009
Irwin Union Bank and Trust Company, Columbus, IN, September 18, 2009
Irwin Union Bank, F.S.B., Louisville, KY, September 18, 2009
Georgian Bank, Atlanta, GA,,September 25, 2009

These 99 banks have failed in just the past nine months. In fact, there have been more bank failures in Georgia (19) and Illinois (16) in 2009 than there have been credit union failures in the entire nation combined (14). The FDIC expects $70 billion in losses due to failures over the next five years, and there are currently 416 banks on its "problem" bank list. This, even with $600 billion in TARP funds allocated to fortify the banking industry's financial statements.

What was your point again, Mr. Leggett?

This isn't a contest, Mr. Leggett. If it is, I just told you the score. Instead, we are talking about thousands of jobs, billions of dollars, and immeasurable consumer confidence lost. Instead of celebrating, why not use your position at the ABA to help your member banks prevent the next global financial meltdown? Seems like a better way to spend your time than throwing mud on the only financial institutions in America interested in helping common, everyday people get the affordable credit they need and deserve.