1.  C ARIBBEAN C ONFEDERATION OF C REDIT U NIONS 54 TH A NNUAL I NTERNATIONAL C ONVENTION Revitalize Your Leadership Vision Sunday June 26 th 2011 Renaissance Curacao Resort & Casino Conrad Enill, MBA,CUDE Chairman & CEO, Connill Enterprises Limited 12/06/20161

2. C ARIBBEAN C ONFEDERATION OF C REDIT U NIONS 54 TH A NNUAL I NTERNATIONAL C ONVENTION  Revitalize Your Leadership Vision through Value Based Management using Innovative Strategies to create Effective Credit Union Leadership. 12/06/20162

3. The World Council of Credit Unions consists of:  183 million members  49,000 credit unions  97 countries W ORLD C OUNCIL OF C REDIT U NIONS 12/06/20163

4. C ARIBBEAN C ONFEDERATION OF C REDIT U NIONS The Caribbean Confederation of Credit Unions comprise of:  Total affiliated Credit Unions - 261  Total membership – 1.9 million  Total assets – US $3.5 billion 12/06/20164

5. D ESPITE T HESE N UMBERS HERE ARE S OME T HINGS THAT ARE PUBLISHED B Y C REDIT U NION L EADERS.  There’s nothing like a good ole recession to make us question everything. It’s been said that people work together best, when there’s a crisis that’s when we really pull together as a team.  Well, we are in a crisis. So forgive me if I’m blunt, but these times give me no choice. 12/06/20165

6. A RE C REDIT U NIONS GOING TO S URVIVE ?  Credit unions are literally dying of old age. I met a Credit Union professional yesterday who told me the average age of their membership was 71. I replied “Are you sure that’s not the average age of your board?” No. The members. Then I asked the obvious, “What’s your loan-to-share ratio?” He just chuckled. This year Generation Y will outnumber the Baby Boomers (the largest generation in US history). Boomers are beginning to die. The youngest Generation Y is getting their driver’s license next year. The oldest will turn 36. There are 70 million of them. In two years they will all be old enough to enter into a legal contract (get a loan on their own). There are 70 million of them 12/06/20166

7. W HAT I S T HE D ATA S AYING ?  Mathematically speaking credit unions did not need Generation X (the smallest generation in US history). Therefore we didn't’t bother to market to them, or figure them out, or listen to them or even begin to understand what the next generation will demand. This is largely the cause of the 48 year old member age average, and why it still climbs.Generation X (the smallest generation in US history)  Credit union members ages 25 to 42 have dropped by 17% in the past two decades. These are the prime borrowers. 12/06/20167

8. A RE C REDIT U NIONS H APPY W ITH T HE P ERFORMANCE O F T HE M ARKET & M ANAGEMENT ?  The proliferation of community chartered credit unions did not result in increased market share for the industry. Rather, membership flat-lined for the first time in history.  The majority of the sitting credit union CEOs are within 5 years of retirement. They can see the finish line. Consequently, many of them will put blinders on to avoid distraction. 12/06/20168

9. A RE C REDIT U NIONS ABLE TO DEAL WITH M ERGERS AND S OCIAL M EDIA ?  Mergers will be used as big fat band-aids. But the wound will not heal. It will begin to fester.  Social media is not a fad. It’s a fundamental shift in the way credit unions communicate. If you don’t get it, embrace it, and practice it – you’re toast. 12/06/20169

10. O R ARE C REDIT U NIONS BEING TOO HARD ON T HEMSELVES ?  Credit Unions and Cooperatives will survive as they have done for many years.  Let’s plan that we will ensure that our credit unions survive. 12/06/201610

11. 12/06/201611 T HE N EW C ONSUMER : A NYTHING, A NYTIME, A NYPLACE ….(1)  Consumers are not what they used to be. The number of new consumers grow every year, and there presence is transforming the marketplace drastically.  Today’s consumers are overtired and overworked, and, as if that weren't’t enough, they’re a little jaded, making the easy sale a thing of the past.  Today’s consumers are well informed, plugged in and online and they are motivated to make good decisions. They are willing to shift loyalties and experiment with the new and different.  Ian Morrison, The Second Curve

12. 12/06/201612 T HE N EW C ONSUMER : A NYTHING, A NYTIME, A NYPLACE ….(2) Today’s consumers are different from those of the past in five major ways:  There’re better educated  They’re discriminating  They’re better informed  They’re more individualistic  What they value has changed. Ian Morrison, The Second Curve

13. C USTOMER -D RIVEN G OVERNMENT : M EETING THE NEEDS OF THE C USTOMER, N OT THE B UREAUCRACY  According to David Osbourne & Ted Gaebler (1993) in “Reinventing Governments,” it was stated that Governments are changing their focus to cater to the needs of their customers. In many public service organizations, few people ever used the word customer or knew who their customers were.  In effect, Total Quality Management stands the traditional organizational chart on its head: it states that customers are the most important people for an organization; those who serve customers directly are next; and management is there to serve those who serve customers. 12/06/201613

14. The Customer: The Credit Union Member Everyone’s cheque is ultimately signed by the customer. The Credit Union Member allows us to stay in business so he belongs at the top of the chart The People Building Team: This is the name given to staff. The People Building Team works for the credit union member. The Leadership Team: This is the name given toSupervisors and Department Heads. Their responsibility is to give leadership and direction to the Credit Union, and they work for the People Building Team. The Development Team: This is the name given to the corporate officers. Their responsibility (in addition to leading their respective areas of the Credit Union) lies in long range planning and development. They work For the Leadership Team. Conrad Enill: This is my name. My “title“ is Team Leader My responsibility is to speak and write and give direction to your organization. I work for all these People! The Customer: The Credit Union Member Everyone’s cheque is ultimately signed by the customer. The Credit Union Member allows us to stay in business so he belongs at the top of the chart The People Building Team: This is the name given to staff. The People Building Team works for the credit union member. The Leadership Team: This is the name given toSupervisors and Department Heads. Their responsibility is to give leadership and direction to the Credit Union, and they work for the People Building Team. The Development Team: This is the name given to the corporate officers. Their responsibility (in addition to leading their respective areas of the Credit Union) lies in long range planning and development. They work For the Leadership Team. Conrad Enill: This is my name. My “title“ is Team Leader My responsibility is to speak and write and give direction to your organization. I work for all these People! T HE O RGANIZATION T OTAL Q UALITY S ERVICE O RGANIZATION C HART 12/06/201614

15. W HAT IS THE S OLUTION ?  Leadership of our credit unions.  A revitalized leadership agenda. 12/06/201615

16. O UR A GENDA T ODAY -A N A PPROACH TOWARDS :-  Revitalizing Your Leadership Vision through Value Based Management using Innovative Strategies to create Effective Credit Union Leadership. 12/06/201616

17. D ID Y OU K NOW ? People who lead frequently bear scars from their efforts to bring about adaptive change. Often they are silenced. On occasions they are killed. (Ronald Heifetz Kennedy School of Government-Harvard Business School.) 12/06/201617

18. D ID Y OU K NOW ? Markets lack culture, leadership and emotion, do not experience the busts of desperation, depression, denial or remorse and hope that corporations face. The market has no lingering memories or remorse. It has no mental models. The market does not fear cannibalization, customer channel conflict, or dilution. It simply waits for the forces at play to work out – for new companies to be created and for acquisitions to clear the field. (Richard N Foster and Sarah Kaplan.) 12/06/201618

19. T HE S UCCESS E QUATION. T HE C HALLENGE  People and Markets.  Credit Union’s Objective: Win win win or lose lose lose.  You choose to win or lose by the decisions you choose to make or the actions you take because you operate in markets. 12/06/201619

20. …..credit union principles 1. Democratic Structure Open and Voluntary Membership, Democratic Control, Non-Discrimination. 2. Service to Members Service to Members, Distribution to Members, Building Financial Stability. 3. Social Goals. On – Going Education, Cooperation among Cooperatives, Social Responsibility. (Approved by the Membership Council of World Council of Credit Unions 24 th August,1984) C REDIT U NION P RINCIPLES 12/06/201620

21.  H OW T O D O T HIS ? D ECISION ONE - 12/06/201621

22. W E B EGIN WITH A V ISION S TATEMENT OF O URSELVES ….I T B EGINS WITH A S TATEMENT  This vision statement has been developed to build on the growth and consolidation that have been achieved to date and also to transition credit unions to expand its operations to achieve further growth. In fact it is our future state.  The future growth requires credit unions to change the way it does business and to reflect the quality that is now required for their members. 12/06/201622

23. W E T ALK IT SO IT WILL H APPEN The New Vision of Credit Unions:  A future state credit union will be a world class organization structured to be the preferred financial institution of its members by meeting and exceeding their expectations by the quality of service, speed of response and innovation. Enill 2011 12/06/201623

24. N EW V ISION A future state Credit Union will be a world class organization…  This very powerful and confident opening statement is aimed at defining future goals and aspiration of credit unions. It states the intent to be world class which sets the performance standards in the areas that are critical to success. These factors will change and be revisited based on external environment analysis and attainment of specific targets. This is to be determined by the shareholders and delivered by Management. 12/06/201624

25. …structured to be the preferred financial institution of its members……  This requires the credit union leaders to continue its focus on people, assets, governance and accountability to achieve success in becoming the preferred choice. N EW V ISION 12/06/201625

26. …by meeting and exceeding their expectations  Meeting and exceeding the expectations of its members will require credit union leaders to challenge their organizations to deliver superior performance through technological leadership, operational excellence and a dynamic workforce of volunteers and paid staff. N EW V ISION 12/06/201626

27. ….by the quality of service  Quality of service focuses the credit union on the consistent and continuous commitment towards meeting and exceeding basic agreed industry specific standards. N EW V ISION 12/06/201627

28. …speed of response and innovation  And speed of response which is essential for today’s customers and innovation which is required for developing and improving the services offered to your credit unions members so that you can become the preferred choice in the industry. N EW V ISION 12/06/201628

29.  B UILDING A W ORLD -C LASS C REDIT U NION O RGANIZATION 12/06/201629

30. 30 P OSITIONING C REDIT U NIONS IN THE G LOBAL A GE IN THE G LOBAL A GE 12/06/2016

31.  L EADERSHIP & M ANAGEMENT 12/06/201631

32. Growth and performance 2 1 4 3 “Rigour & Accountability” “Jumping the Curve” “Value Management” 5 “World Class Enabler” “Delivery Basics” Org structure Roles & responsibilities Minimum standards ChaoticFormalMature Individual & team performance Consequence & reward Results focused Effective process Individual stakeholder strategies ‘Speed to Value’ Expert line management People development Maximise value to Credit Union & National agenda Flexibility ‘Network’ operation Responsive & predictable contribution to policy Role change complete (from ‘Follower to ‘Trend setter’ Established leader in third sector T HE C REDIT U NION O RGANIZATIONS 2011 - 2017 (H IGH L EVEL ) (L EADERSHIP TO A GREE ) 12/06/201632

33. P RINCIPLES OF THE A PPROACH  People change through necessity;  Managing performance is based on measuring it;  People learn (and develop capability) by doing;  To go from ‘chaotic’ to ‘mature’, we need to go through a period of establishing ‘formality’ which means:  Roles & accountabilities are adhered to;  Processes and procedures are followed;  Professional discipline is upheld (eg. timekeeping, confidentiality);  Decisions are made based on data;  Behaviours adhere to an understand minimum standard. 12/06/201633

34. 34 T HE I MPORTANCE OF L EADERSHIP “80% of people’s actions in an organisation are determined by what the leadership does and says.” - Forum Leadership Research, 1990 12/06/2016

35. M ANAGEMENT & L EADERSHIP  Should have clear vision and expectations;  Leaders should be held accountable for their performance and that of their reports;  Hard individual performance decisions should be made;  Leaders should be capable of managing the organization;  Capability & performance should be driven by challenge & support;  Effective use of processes & procedures;  Teams should be led effectively;  Roles should be clear, with detailed objectives and clarity of who makes what decision;  Basic skills (meetings, delegation, difficult conversations etc) should be in place throughout the organization. 12/06/201635

36. Growth and performance 2 1 4 3 “Rigour & Accountability” “Jumping the Curve” “Value Management” 5 “World Class Enabler” “Delivery Basics” Org structure Roles & responsibilities Minimum standards ChaoticFormalMature Individual & team performance Consequence & reward Results focused Effective process Individual stakeholder strategies ‘Speed to Value’ Expert line management People development Maximise value to Credit Union & National agenda Flexibility ‘Network’ operation Responsive & predictable contribution to policy Role change complete (from ‘Follower to ‘Trend setter’ Established leader in third sector T HE C REDIT U NION O RGANIZATIONS 2011 - 2017 (H IGH L EVEL ) (L EADERSHIP TO A GREE ) 12/06/201636

37.  C REATING A W ORLD C LASS C USTOMER S ERVICE C REDIT U NION The Role of Credit Union Culture 12/06/201637

38. C ULTURE -T HIS IS T HE B ASIC  Trust – People believe in the system  Effective two-way communication  A culture/attitude of excellence  A willingness to assume new roles; act in a different capacity  A caring organization  Looking after the interest of staff  Coaching and mentoring mentality  Tough but fair decisions  Consequences for performance  Respect for others There are both management behaviours and all employee behaviours included in this list. 12/06/201638

39. C ULTURE I SSUES  The only thing of real importance that leaders do is to create and manage culture.” – Edgar Schein, Professor MIT Sloan School of Management  To strengthen your credit union, you not only need to focus on attracting new members – it’s also crucial to find ways to improve retention and increase share of wallet among existing members. This means finding a way to increase the number of members who are loyal to your credit union. This is where internal culture comes in. 12/06/201639

40.  Internal culture encompasses the personality of your credit union – what you collectively value, how you do things, your commonly held beliefs and expectations. It manifests itself everywhere: in how your employees treat one another, the care they take in performing their jobs, and the way they treat your members. An organization’s senior leadership is directly responsible for defining its culture and typically has a significant influence on the organization’s culture – but remember that culture also reflects the collective mindset of employees. When your employees understand and embrace your organization’s culture, it translates into a better and more consistent member experience. Consistently good experiences build trust and loyalty, which in turn build business. C ULTURE I SSUES 12/06/201640

41.  T RANSFORMING Y OUR C REDIT U NION 12/06/201641

42. W HAT IS C REDIT U NION - S ERVICE F OCUSED Q UALITY ?  A strategy to gain competitive advantage by meeting and exceeding the expectations of the members you serve. 12/06/201642

43. H ISTORY O F S TRATEGIC A PPROACHES  1950’s - General Management: Management audits, performance, budgetary control  1960’s - Profit Planning: Objectives, Forecasts, Plans-Budgeting and Control  1970’s - Business Planning: Business Assessments- environmental/stakeholder expectations-Operational plans Budgets,MBO, Control Systems.  1980/90’s - Strategic Management-Deliberate: Business assessment, environmental intelligence, Corporate strategic Plans-Divisional plans, Organization effectiveness-operational plans 12/06/201643

44. I N 2000 PLUS –S TRATEGIC M ANAGEMENT AND D ISCONTINUITY -E MERGENT  Re-inventing the future  Learning to forget the past (primarily because of technology)  Establishing Stretch goals  Competing with industry foresight  Competing for the future 12/06/201644

45.  C REATING A W ORLD C LASS C USTOMER S ERVICE C REDIT U NION O RGANIZATION The Role of Customer Service Delivery 12/06/201645

46. 46 P OSITIONING C REDIT U NIONS IN THE G LOBAL A GE IN THE G LOBAL A GE 12/06/2016

47. T HE C ONTEXT Productivity Product Quality Total Quality 12/06/201647

48. T HE C ONTEXT Customer Service Service Quality Customer Focus 12/06/201648

49. T HE C ONTEXT Productivity Product Quality Total Quality Service Quality Customer Focus Customer Service Credit Union- Focused Quality 12/06/201649

50. Quality of Products and Services86% Long-Term Growth78 % Employee Productivity74 % Company Reputation71 % Period Financial Results64 % Stockholder Perceptions52 % Community Relations36 % I MPORTANCE OF P ERFORMANCE O UTCOMES TO S ENIOR E XECUTIVES OF F ORTUNE 500 COMPANIES 12/06/201650

51. W HAT S ERVICE -F OCUSED Q UALITY I MPLIES FOR C REDIT U NIONS ? Total Members Satisfaction = To increase this for members you must invest to meet and exceed member’s expectations and eliminate waste. Perceived Quality Cost 12/06/201651

52. Q UALITY FROM THE M EMBERS OF THE C REDIT U NION P OINT OF VIEW Quality-in-Feeling (My experience dealing with the people and organisation behind the product or service) Quality-in-Fact (My experience using the actual product or service) + 12/06/201652

53. Q UALITY IN F ACT Three Definitions of Quality GRADE or INHERENT VALUE Refers to the quality or type of the design. Lies in the number of combination of desirable attributes. Is a strategic choice. FITNESS FOR USEIs the extent to which the product or service is fit for members’ use. Members determines fitness for use. CONFORMANCE TO INDUSTRY STANDARDS Is determined by the degree to which product or service meets established standards. 12/06/201653

54. Q UALITY - IN -F EELINGS ReliabilityDo you deliver what was promised? AssuranceDo your members feel like they can trust you? TangiblesDo you and your facilities look clean, attractive, and professional? EmpathyDo you provide members with care and individualised attention? ResponsivenessDo you treat your members as a priority? 12/06/201654

55. H OW M UCH D ID E ACH D IMENSION I NFLUENCE M EMBERS ’ R ATINGS O F S ERVICE Q UALITY ? 12/06/201655

56. Q UALITY A FFECTS M EMBERS ’ P ERCEPTION 12/06/201656

57. W HY Y OU M UST S EEK C OMPLAINTS “At any one time 25% of your members are dissatisfied enough with your service to stop doing business with you… Only 4% will complain.” - TARP, 1986 5712/06/2016

58. T HE P YRAMID OF I GNORANCE The Desert of Problems and Solutions Workers Supervisors Managers Top Executives Typical Authority High Medium Low High Medium Low Typical Information Source: Shuichi Yoshida, Calsonic Corporation 12/06/201658

59. M ANAGE BY W ALKING A ROUND 3 Actuals 1. Go to the actual place of the problem. 2. See the actual problem. 3. Talk to those involved with the problem and get the actual facts. 12/06/201659

60. 60 H OW M ANAGERS S PEND T HEIR T IME 12/06/2016

61. I NVEST IN P EOPLE Service-Focused Quality cannot be done without training and skill building:  “Soft” member-relations skills  “Hard” process-improvement and problem-solving skills 12/06/201661

62. W ORLD -C LASS T OTAL Q UALITY M ANAGEMENT, E DUCATION AND T RAINING  Education and training must precede all improvement activities.  Management is first in learning, planning, modelling, and making improvements.  Management teaches what it has learned.  Education evolves from the classroom to on-the-job training. 12/06/201662

63. D EVELOP C OMMUNICATION S YSTEMS  Develop information-rich (vs. need-to-know) daily communication within your company.  Exploit formal organs of communication to reinforce commitment and celebrate improvement gains.  Install visual management. 12/06/201663

64. 64 V ISUAL M ANAGEMENT  Displays data throughout the work environment.  Focuses on the operational performance of key processes.  Makes accountability visible to all.  Promotes discipline. 12/06/2016

65. 65 TQM R EWARDS AND R ECOGNITION  In the early going, focus on formal and informal recognition.  Move over time to changes in the reward system – as the improvement momentum builds in the organisation.  Don’t underestimate the power of a pat on the back.  Especially in the early going, reward effort as much as results. 12/06/2016

66. T HOUGHT R EVOLUTION People are assets with the unlimited capacity to improve. 12/06/201666

67. P EOPLE P RACTICES  Appraisal and performance systems used effectively (creating audit trail of true performance);  Individual quality of people management measured with clear implications for poor performance;  Talent management plan in place;  Succession plan in place – with fast tracked individuals. 12/06/201667

68. 68 B UILDING C USTOMER F OCUS Transforming the Organisation FROMTO Everything begins and ends with management Everything begins and ends with the customer-the member Functional “stovepipes”Cross-functional and inter- organisational cooperation Being good at crisis management and recovery Doing it right the first time Depending on heroicsDriving out variability of process “Participative” or “Scientific” management “Participative” and “Scientific” management 12/06/2016

69. 69 B UILDING C USTOMER F OCUS Transforming the Organisation FROMTO It’s their problemOwnership The way we’ve always done itContinuous improvement Making assumption/judgement calls Doing it with data and fact-based decisions 12/06/2016

70. M AKE A C OMMITMENT TO THE M EMBERS  Keeping pace with members and dealing with their increasing need for choice, access and service will be expensive and time-consuming  Rapid adaptation to changing member’s needs will be essential to success and gaining competitive advantage. 12/06/201670

71. T OTAL Q UALITY M ANAGEMENT  According to John Cleveland, one of the several managers at Michigan Commerce Department, Total Quality Management is one of the single most difficult things.  There is a period of intense ignorance that organizations have to go through because it does not know much about their customers – because no one talks to their customers. By forcing organizations to listen, TQM has been extremely effective at changing their cultures. 12/06/201671

72. 72 “There are only two things of importance…one is the customer and the other is the product. If you take care of your customers, they come back. If you take care of your product, it doesn’t come back. It’s just that simple and just that difficult.” - Stanley Marcus Neiman-Marcus C USTOMERS AND P RODUCTS 12/06/2016

73. T HE N EW L EADERSHIP C HALLENGE T HE D ILEMMA OF C HANGE Lead effort with active involvement Remove barriers to the success of the project Fill/ vacate positions quickly Recognize roles and do not circumvent Be staffed and prepared to provide needed support of new processes and ways of working Be ready to change the culture of the credit union. Lead effort with active involvement Remove barriers to the success of the project Fill/ vacate positions quickly Recognize roles and do not circumvent Be staffed and prepared to provide needed support of new processes and ways of working Be ready to change the culture of the credit union. Provide the ultimatum for change: No going back Be prepared to change paradigms – Be the agent to challenge the credit union’s management. Be prepared to manage the fallout - Up and down Lead effort with active involvement Manage and keep the shareholders up to date and manage expectations Provide the ultimatum for change: No going back Be prepared to change paradigms – Be the agent to challenge the credit union’s management. Be prepared to manage the fallout - Up and down Lead effort with active involvement Manage and keep the shareholders up to date and manage expectations Challenge their people and trust in the change process Shed old data systems and evoke a hard cross- over to Data Management System Change themselves, solicit and act upon feedback Set performance expectations, reward success and confront non performance Support people development Challenge their people and trust in the change process Shed old data systems and evoke a hard cross- over to Data Management System Change themselves, solicit and act upon feedback Set performance expectations, reward success and confront non performance Support people development Remove barriers to the success of the project Be aware of the impact on the credit union and take that into consideration when making decisions Be committed to changing the credit union Remove barriers to the success of the project Be aware of the impact on the credit union and take that into consideration when making decisions Be committed to changing the credit union 12/06/201673

74. S UGGESTIONS F OR YOUR P ERSONAL P ERFORMANCE C ONTRACT  Turn the Credit Union into a performance driven organization;  Be able to quantify your value to the credit union by end of 2011 and show marked improvement by the end of 2012;  Encourage colleagues / peers / to ‘lead from the front’, own the performance of their department and staff and drive change with belief and conviction;  Develop a strategy to 2015 that anticipates the ‘new world’ and outlines the changes required to operate successfully in it. 12/06/201674

75. 75 P OSITIONING C REDIT U NIONS IN THE G LOBAL A GE IN THE G LOBAL A GE 12/06/2016

76. A NY Q UESTIONS ? 12/06/201676

77.  Thank You! C ONNILL E NTERPRISES L IMITED (Credit Union Business Advisory Services) P.O. Box 1142, Port of Spain, Trinidad & Tobago Telephone/Fax: (868) 645-2780 24-hour service: (868) 724-5528 Email: connillenterprises@gmail.comconnillenterprises@gmail.com 12/06/201677