Build A ‘Relationship Culture’

By Eric Bierman

Many credit unions realize the positive impact a strong and positive corporate culture can have on their growth, employee satisfaction and performance, and member loyalty. But few recognize the time, effort, and commitment it takes to implement such a culture.

Credit unions use many terms to describe their desired culture, such as "sales culture" or "service culture." Although such terms may seem irrelevant, what you call your culture sends an important message to employees--a message that ultimately will transfer to members via daily interactions.

Building long-term relationships with members, one transaction at a time, will position your credit union for long-term success. So why not use the term "relationship culture" for your new and improved environment?

Here’s how to get started:

• Involve everyone from the start. Have employees assess all aspects of your current operations and culture. Solicit opinions about changes they’d like to see in the new relationship culture. Keep it positive and assure employees you value their feedback.
• Recruit the right people. The adage, "Hire for attitude, train for skills" applies to the financial services industry. If you’re trying to create a more retail-friendly environment, hire employees with people skills. Financial skills usually can be taught. Also, set the stage so employees will know what’s expected of them.
• Create a service mission statement and service standards. Most credit unions have mission statements, but few employees know what they are. Create a service mission statement—a pledge to members regarding the service you promise to provide—and post it where employees and members can see it. In addition, create a list of five to seven service standards. These are specific behaviors that define service at your credit union.
• Pay attention to internal service. Financial institutions often neglect service that employees provide each other, but it’s as important as the service that employees provide consumers. Create a list of internal service standards—behaviors employees will exhibit consistently. When co- workers treat each other exceptionally, such behavior will translate to great member service.
• Obtain senior management support. Employees pick up on what managers buy into and what they don’t. Communicate this fact to the management team and address managers’ concerns before moving forward.
• Create great coaches. Set aside 30 minutes per month per employee for formal coaching sessions. Challenge employees, coach them to maximize their potential, and positively reinforce their accomplishments. Employee development is a key manager responsibility.
• Emphasize training. Employees won’t sell what they don’t know, so start with product knowledge training, with periodic testing and performance requirements. For sales and service training, gradually introduce important concepts, including a definition of a sales model and the importance of listening for cues and clues. Other ideas: Conduct nonthreatening role-playing exercises, and take a service "field trip" to see local businesses’ service quality. Make training fun, and make it ongoing to reinforce its importance to employees.
• Reinforce training concepts. Measure employees’ performance and reward them accordingly, implement employee development plans, create a product knowledge manual, send out member service surveys to gauge member satisfaction, and hold team meetings to share successes and work through challenges.
• Prepare for resistance. Change is difficult for many people, so be ready for resistance. Hold the course and know the vision you’re embracing will take your credit union to the next level.
• Hold employees accountable. If your credit union is like most, your employees rarely have been challenged to cross-sell, they haven’t been coached consistently, and they haven’t been expected to initiate conversations with members and look for opportunities to deepen those relationships. If employees are trained, coached, and given opportunities to improve—but fail to do so—they no longer may fit in with your credit union. Allowing such employees to stay will send a crippling message to your top performers. Don’t let poor performers sabotage the vision and culture you hope to create.

Creating a relationship culture doesn’t happen overnight. Commit 12 to 24 months to create the framework needed to succeed. Have a step-by-step timeline that gradually introduces these concepts, and celebrate your successes. This is a continuous process. The first couple years can be challenging, but the gains you’ll see in employee satisfaction, sustained growth, and higher member loyalty will be well worth it.

Eric Bierman is training solutions manager for DEI Inc., Cincinnati. Contact him at 513-825-5800 or at ebierman@dei-corp.com.