Arizona State Credit Union (AZSTCU) called on Sheshunoff Consulting + Solutions (SCS) to assist them in realizing performance improvements. Kicking off the project in a big way, AZSTCU branded their project S.T.A.R. - Strategic Thinking Achieves Results- and everyone, associates and consultants, proudly wore shirts with the S.TA.R. logo emblazoned in the front every Wednesday. As Annette Grooms, Engagement Manager at SCS, says, “The CEO wanted S.T.A.R. to be much more than a project; he wanted it to be an ongoing process whereby the organization is continually looking at opportunities to improve. S.T.A.R. is definitely part of their vernacular.”
AZSTCU is the largest state-chartered federally insured credit union in Arizona at $1.3 billion in assets. Provided that their associate-focused culture remained untouched, David Doss, President and CEO of AZSTCU, was very committed and unafraid of making changes to benefit the organization. Equally committed to his associates and members, Doss was eager to improve efficiencies and processes.
Based on the results of an Opportunities Assessment SCS conducted, Doss said “we discovered from the input of SCS that we had opportunities for new fee revenues, improvements in our organizational structure and a more efficient approach to our new business model.”
The Solution
SCS used a three-prong approach to develop a strategy for AZSTCU to realize these performance improvements. The first strategic initiative focused on retail banking and operations, with a review of deposit-related, non-interest income opportunities. The second initiative concentrated on organizational and operational aspects of consumer, commercial and mortgage lending. The third initiative was aimed at administration areas and information technology (IT).
What distinguishes SCS is its reliance on Action Teams, which it used in its first two initiatives to assist AZSTCU in identifying and implementing process improvements. The goal of the Action Teams was to include Credit Union associates at every step of the process, giving them ownership, the prime ingredient for a successful outcome. To complete the third initiative, SCS worked directly with the business units and documented recommended processes, procedures, and organizational changes, and created staffing models to support the functional areas as volumes and activities changed.
The Results
Collectively, the retail banking/operations and lending action teams made 327 recommendations to improve processes, improve member service or leverage technology, according to Grooms. “The action team process worked well. The Co-chair of the retail/deposit operations team is now chairing the lending team also, and the plan is to merge the two teams into one in the near future. “ Each action team was charged with implementing changes concurrent with the discovery phase. At the end of the discovery phase, team members were asked to prioritize items not yet implemented. “The SCS staff worked closely with our retail banking, deposit operations and lending departments for approximately four months. Our associates were involved in the discovery stage and eager to implement the processes as well as discontinue the redundant procedures and practices that were uncovered,” said Doss.
“By implementing new as well as modifying existing processes, our Credit Union saw a realized $2 million benefit in cost savings and enhanced revenue,” said Doss. “Our organization has benefited tremendously from their [SCS] findings to improve our efficiencies and processes. “ AZSTCU’s extensive enterprise-wide project management (EPM) organization and protocol should be very effective for implementing the major action team recommendations moving forward.
“SCS kept our culture intact,” said Doss, “and addressed sensitive areas without creating fear.” Doss recognized that his organization’s culture would benefit most from a measured approach to efficiency reductions. “We take a longer term view in our culture and SCS understood the requirement.” Dave Doss was pleased with the overall change taking place within the organization. The project was a catalyst for sustainable change, and continues to be a good return on his organization’s investment.