Value Alignment Key to Culture Success: Onsite at REACH

Hollywood, Calif. – How can a credit union create a culture where successes are always shared when many job descriptions involve sales/? Reward behaviors, not outcomes, and say goodbye to commission-based bonus programs that can lead to a competitive environment.

That was one key takeaway from Susan Makris, SVP and chief administration officer for the $6.5 billion Patelco Credit Union in Pleasanton, Calif., who spoke at the California and Nevada Credit Union Leagues’ REACH conference last Thursday with two other credit union administration executives. Makris explained that at Patelco, sales team members and branch employees are not rewarded for their performance, but rather for things like how well they demonstrate teamwork, leadership competencies and excellent member service, because employees are “all in this together.”

“[The goal is] to create one purpose,” she said. “Every employee shares in the success of how we serve members.”

Ensuring that the values of everyone who has a stake in the credit union – its employees, its members and even its third-party business partners – are in alignment was a common theme emphasized by Makris and Deena Otto, SVP of administration for Wescom Credit Union ($3.9 billion, Pasadena, Calif.) at the panel discussion on culture.

Otto noted that employees are often asked how their values match with their members’ values, and how those shared values fit the credit union’s brand. She also gave a specific example of the importance of staff member alliance at Wescom: When the credit union made a change to its branch hours that wasn’t popular among employees, the CEO’s message to those in opposition was, “Either you’re on board, or you can resign today.”

Wescom employees have the opportunity to voice their opinions in a survey every two years, which gives management enough time in between surveys to make improvements, Otto explained; the improvements made are then measured.

Makris mentioned that it’s important for a credit union’s vendor partners to be in sync with the credit union from a culture standpoint because oftentimes when a member calls the credit union, they’ll get a vendor employee on the phone, whom they’ll associate directly with the credit union.

She added that by treating members and employees as one unit, a credit union can be more competitive.

“Patelco’s mission is to build hope and opportunity for financial health and financial well-being,” she said. “If you’re doing that for your members, shouldn’t you also be doing that for your team?”

The third panel speaker, Kevin Sherrell, chief information and administration officer for Altura Credit Union ($1.35 billion, Riverside, Calif.), said Altura’s culture came largely from its board and is focused on member service and community involvement. He noted when it comes to what a credit union stands for, walking the walk is just as important as talking the talk.

“You have to take action, not just talk. You may say you’re about helping your community, but how many hours are you actually out there volunteering?”