February 21, 2012

Credit Union Management magazine’s Web-only “Facility Solutions” column runs the third Tuesday of the month.

The mix of team members significantly influences the success of every facility project. We have observed projects with great potential that failed because of the team makeup. Over the last few years we have also been asked to help credit unions that started a project with great intentions only to have it fail. One of the causes is not including the right people on the project teams.

Take a branch business modeling and prototype project, for example—limiting the team to the head of marketing, branch banking and operations is not enough. Success is driven by the process as much as by the resulting branch design. The process provides an opportunity to gain input from a variety of resources with different perspectives and to create buy-in to the process and results. In a branch prototyping project, we would typically suggest including the following job functions, at a minimum:

• CEO – Ensure top-to-bottom engagement, express the importance of the work and be part of the planning process. No disengaged decisions.
• Chief operations officer – Inform the overall operating environment for branch and operations.
• CFO – Represent financial performance concerns.
• Chief marketing officer – Own the brand and help guide translation.
• Branch Operations – Represent branch performance goals and operating realities.
• Mortgage, lending, small business, insurance, wealth management managers – Present their business interests and goals. Integrate them into the branch experience and create mutual staff success.
• HR – Address the impact of evolving and changing job functions, titles, hours of operations, use of technologies, and the credit union culture.
• IT – Determine how systems can support changes in branch operations and delivery environment, timing, cost, and systems integration.
• Security – Overlay security concerns on new cash handling and service delivery concepts. Coordinate cameras, architecture and merchandising. 
• Facilities – Understand the impact of the new branch business model on existing standards and branch types, locations and configurations.
• Branch Manager – Gain on-the-ground input from front-line staff and provide a link to branch staff outside senior management.
• Board Member – Can provide board input and be a champion to help sell the concept to the full board.

Each project type requires a different mix of stakeholders. The best and longest lasting results will be produced by the most inclusive process.

Who’s the Champion?

Two years ago we worked with a credit union that had seven key initiatives, all of which had grown a number of subset projects and were all behind schedule. A bit of digging found the culprit: All the projects were directed by committees composed primarily of the same individuals, and there was no individual responsibility.

Each project needs an individual to be responsible for performance. A unique example is Umpqua Bank where the CEO is the champion of the brand experience. Umpqua has become internationally known for how its unique brand is winning market share and enhancing profitability.

This is not to say every credit union CEO needs to be the brand champion; rather they must be engaged and assign individual responsibility to an accomplished manager rather than to a committee. While the project champion may manage a committee, he or she is responsible for engaging and motivating others, remaining on schedule and budget, and owning the project. This individual’s work should not stop when the initial project is done. The champion should be responsible for implementing and measuring the impact of their team’s work over time. Assigning individual responsibility will help ensure the best results on time and budget.

Paul Seibert, CMC, is VP/financial design for CUES Supplier member EHS-Design, Seattle, and author of CUES Complete Guide to Credit Union Facilities.