2010 - The Best IS Yet to Come

Those of you whom have been with me for a while, recognize that I do a lot of reflection during December and January. What lessons have we learned? What does the future hold? And, I often share my thoughts with you. So, here's my view of the light at the end of the tunnel – it’s not an oncoming train. OK, so what is it, then? I’ll share that in a bit. First, what are the lessons learned?

The spike we experienced in delinquent loans during the 4th Quarter 2007 was a big surprise. Unfortunately, it was not a spike. The increase is still here. Is this the new normal? I don’t’ think so. It just wasn’t the spike that I thought it surely was. As a result, I did not act quickly enough to remedy the situation. Given the state of the economy, I’m not certain it would have made a difference in delinquency and related charge-off. None-the-less, we didn’t act quickly enough. At that point, I believed things would right themselves during 2008. Can that be called denial? Or, just very rose-colored glasses? Things did not improve – more denial.

Well, 2008 was tough enough. Then came 2009 and the NCUA’s pro-active (although late) approach to the Corporate Credit Union System breakdown. I’m still wondering what they were thinking. My immediate reaction? More denial. “This can’t be happening. Don’t they know how this will hurt credit unions in general?” Not good; nothing to be proud of. But,
it is what it is.

While the state of the economy has caused some very serious problems in the financial services industry and we would have probably had to take the steps we’ve taken to reduce costs, we could have done them earlier. We’re going to right the ship. Again, we could have done it sooner. I did not lead in a manner that would create a “performance with purpose” culture. I’ve learned that we still want to be forward thinking and not reactionary. However, we must assume that tomorrow will be like today until there is evidence to the contrary. We must shed those rose-colored glasses. And, we must act; not over react.

Most of you probably read my recent Merry Christmas / Happy New Year greeting. This past year I was fortunate enough to represent the Credit Union Executives’ Society at the Annual Convention of the World Council of Credit Unions. At that Convention, I had the pleasure and privilege to meet former Mexican President Vicente Fox. He introduced me to the concept of “performance with purpose.” What does this mean to us? If we are to “serve members’ changing financial needs,” we have to be in business. To stay in business, we have to “perform” efficiently and effectively. Not just at the member contact level; not just as support from behind the scenes; but, also financially. As I’ve reflected on President Fox’s view point, I would like to weave it into the Tampa Bay Federal Experience:

Lean Thinking with a Noble Purpose.

So, what is Lean Thinking? Creating Financial Strength through the Elimination of the Unnecessary. This is the ultimate in creating Member Value. Companies like Toyota life by this credo. KIP is our shining star here. What if we could create the next generation of KIP? What could that look like? Lean Thinking results in: ROA of 1% or higher; Net Interest Margin of 3.75% or higher; and, Operating Expenses of 3.75% or lower. And; what is our Noble Purpose? Serve Members’ Changing Financial Needs…with Pleasure; as measured by $22K ATR. Need we say more?

Now for that light: Building upon our present culture to become an organization that is able to perform at a high level for the realization of a noble purpose will not take a new vision of the future. After all, we have the Tampa Bay Federal Experience. It will require a different approach to execution. In the past, I have been too willing to wait and see. We must become quicker to act. When things don’t go the way we think they should, let’s fix it. Waiting to see if self-correction is on the way costs valuable time. We must be prepared to take action – without delay. We’re going to create that culture.

Twenty-ten is just beginning. And, our best days are ahead of us. We will be quicker to make certain our 2010 Business Plan is successful. That will help us be prepared for the improved economy in 2011 and 2012.

So, accept the challenge. Don't wait for change to push you. Embrace it and continue the success you now enjoy.

As I have said many times: Success is a journey, not a destination. Enjoy the journey.

Let’s get ready to Kick Ice in 2012. Together, we can make anything happened. So, perform like the champion that you are today and help create the Tampa Bay Federal Experience for everyone around you.