Credit Union Magazine - January 2009 - (Page 33)

stOur cultu ll a matbers wi nly grow re m t ers O e at e th mshtte em m pr al everyday ways of doing things are disrupted or even replaced. Plan ahead to help people from different organizations learn to work together. “Move people around, mix it up, do as many team-building things as you can to get them to operate as one,” Barrett advises. Focus on the positive by emphasizing benefits for members. A “merger of equals” allowed Valley First to add Saturday branch hours and replace a receptionist with a telephone center. “The phone center was huge for the members,” Barrett says. “If we didn’t have the merged resources, there’s no way we would have pulled that off.” All members will stay. The assumption that all merged members enthusiastically commit to the continuing credit union is another myth. Maury Pilver, president/CEO of $107 million asset HealthAmerica Credit Union, Jacksonville, Fla., experienced the challenge of retaining members through five mergers. Pilver describes HealthAmerica as “a network of smaller credit unions that have partnered over the years to reach a survivable size and membership base.” It includes 20,000 members in 46 states. “We know we won’t attract all employees at any hospital or other membership group. This applies whether it’s a new hospital we market to and sign up—such as the 5,000-employee hospital added recently—or a hospital or other group joining HealthAmerica by merger or partnership with us,” Pilver says. “Protecting staff jobs and retaining all employees of the merging credit union, as is HealthAmerica’s longstanding practice, help significantly in holding on to most of the merging group’s members.” Instead, HealthAmerica sets realistic projections and then works closely with its 16 sponsoring hospitals to inform members about its commitment to excellent member service. Studying merged members’ needs and demographics can help credit unions boost retention and even add new members. In October 2007, $173 million asset FAA Eastern Region Federal Credit Union, Clark, N.J., merged with $11 million asset Trilinc Federal Credit Union, Bound 4 de uld have ma he d the deal 5 cuna.orgÉ Brook, N.J. The combined organization will become Aspire Federal Credit Union on April 1. At the time of the merger, FAA Eastern Region Federal served more than 200 occupational sponsors. In comparison, United Parcel ‘Move people Service (UPS) employees dominated Trilinc Federal’s around, mix it up, membership, according do as many teamto Thomas O’Shea, credit building things as union president/CEO. “We set up a member you can to get advisory council because we wanted to understand them to operate the UPS workplace culture as one.’ and whether our products worked with the needs of Hank Barrett UPS employees and the way they worked,” O’Shea says. UPS employees are on the move and work nontraditional hours, so the credit union added an ATM locator, expanded call center hours, and emphasized the availability of shared branches. As a result, O’Shea says the credit union retained former Trilinc Federal members and reversed declining membership trends by attracting 250 new members among UPS employees in the 12 months after the merger. It’s a perfect match. CEOs say culture clashes may be inevitable even among credit unions that appear compatible. “Culture is the biggest issue,” says Rob Givens, president/CEO of $351 million asset Mazuma Credit Union, Kansas City, Mo. “That’s probably as close to a universal truth as you’re going to get.” Givens has participated in four mergers, including roles as an executive at both continuing and merged credit unions. Postmerger attrition often pares the work force in the first year after a merger takes effect. The five credit unions highlighted in this story didn’t lay off employees when mergers took place, although workers sometimes were reassigned and attrition reduced the work force JANUARY 2009É CREDIT UNION MAGAZINE 33 http://www.cuna.org

Table of Contents Feed for the Digital Edition of Credit Union Magazine - January 2009

Credit Union Magazine - January 2009 Contents On My Way Leading Edge Spotlight President's Perspective Game Plan Washington Insider Wright Stuff Executive Suite Reverse Mortgages Come of Age Six Merger Myths Leading-Edge Lenders TwentyFour/Seven Bankruptcy Compliance Tools of the Trade Trendlines Rates & Ratios Council Corner Shoptalk System Scan Marketplace Branching Out Advertiser Index

Credit Union Magazine - January 2009

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