Dear Blog,
Being a credit union coach is a pretty easy task when the credit union you are visiting is functioning well. In that case it is a matter of observing operations, talking to staff and board members, making a few suggestions, and offering congratulations. This week we are dealing with the flip side of that equation -- a credit union with significant issues that is offering us major challenges.
We have been here only for one day but there are significant issues. First, the credit union has more than 30% of their loans delinquent. Their capital base and reserves are weak and the delinquency alone could bankrupt them. Secondly, a simple cash count three months ago found a cash shortage equal to 10% of the credit union's assets. Attempts are being made to recover the money. Third, an unauthorized business was being run out the back door with a fleet of motorcycles which has now been shut down. Finally, the entire Board was forced to step down in disgrace.
The new Board has a good attitude but needs mentors. The poor manager. She is shell shocked. When we arrived, saying "We are here to help," she didn't know whether to laugh or cry. She is committed, but not properly trained and was bullied by her Board. We will give her some tools and assistance and will work with the new board over the next period of time to provide some help. With some work, the business can be turned around. We took this assignment because we like challenges. I really hope that we can help this credit union turn things around.
At lunch today I was served what looked like tomato soup. On closer inspection, I saw two tails and two eye balls sticking out of the broth. To honour my host, I tried the soup and grimaced. A big thank you to Ramona for throwing into my suitcase some granola bars and rice cakes for situations like today. I could never cut it on Fear Factor.