Musings from the NAFCU CU Suite

Letting it go...

Written by Anthony Demangone

It is easy to smile when you're winning.  When the ball bounces your way.  Success puts a skip in your step. You have an extra dose of patience, and you glow with self-confidence.

Everyone loves being around a winner.

But winning streaks end.  Bad days are always a part of life, and you'll have them as a manager.  

String a few bad days together, and those smiles can be hard to find.  That skip in your step?  Gone. 

But not everyone.  There are some folks who push through adversity with a smile.  It isn't the smile of ignorance.  Rather, it's the smile of a professional who knows it is time to roll up one's sleeves and get to work. 

I've always been impressed by leaders who confront those bad days, and simply shrug them off.  They let go of the negativity and stress, and focus on fixing the problems before them.  Good or bad, these leaders don't change.  That steadiness can serve as a wonderful foundation for the rest of the team.  

And since it is baseball season, I'll throw out an old name - Chuck Tanner.

He managed the Pittsburgh Pirates in the 70's and 80's, and guided the Buccos to a World Series championship in 1979.  I grew up a fan of all things Pittsburgh, and I worshipped the Pirates...then known as the Lumber Company.  

I read an article about Tanner recently.  One of the best parts of growing up is learning more about the heroes of your youth. And it is all the sweeter when they turn out to be stand-up guys.  In the article, Phil Garner, who played second base for those Pirates, spoke about Tanner. 

“He never met a day he didn’t like,” Garner said. “His famous deal was you could get beat 15-0 in the worst conditions under the sun – snowing, sleeting and hailing – and he’d come in after the game and say it was great. He’d say, ‘Just think what else we could be doing? Nothing else is as good as playing baseball.’ We’d say, ‘Yeah, right, Chuck,’ but his attitude permeated everybody’s spirit.

“Chuck loved life every day. You know when you saw Chuck Tanner there wasn’t going to be any sourpuss. No matter what he was doing in his life, he put it aside and was happy to see you.”

Just how optimistic was Tanner?  During the 1979 World Series, the Pirates fell behind the Baltimore Orioles three games to one.  Clearly, the Pirates were in big trouble.  Before game five started, Tanner learned that his mother had passed away.  She had suffered a stroke weeks earlier, and her health had deteriorated. I can only imagine how he felt. Before the game started, Tanner gathered the team together. 

“My mother was a great Pirates fan,” he was reported to have told his team before Game 5. “She knows we’re in trouble, so she went upstairs to get some help.”

The Buccos went on to win three games in a row, and win the World Series. 

So, here's to the optimists.  Here's to those who let go of the bad, and get to work.   

So, a question for you all.  When you hit a rough patch, how do you power through?  How do you maintain that positive outlook?

Have a great weekend, guys. 

Luck and Success

Written by Anthony Demangone

You've got to ask yourself one question: "Do I feel lucky?" Well, do ya punk?

    - Harry Callahan, played by Clint Eastwood in Dirty Harry

JCPenney recently sacked Ron Johnson after only 18 months on the job.  He was brought in with trumpets and streamers after his work at Apple.  But things simply went from bad to worse. 

Daniel Gross wrote a nice piece (The Daily Beast) that puts it into perspective.  Here's what really caught my eye.

Sometimes people prosper and thrive because they happened to be at the right place at the right time. That’s not to say Johnson wasn’t a smart retail mind, or that anybody could have done what he did with Apple. Rather, a big chunk of his success may have lain in having the good fortune to run Apple’s retail chain in a period when the company’s designers and engineers were cranking out a series of world-beating, irresistible products. And that wasn’t a skill Johnson could easily transfer to a listing middle-market department store chain.

It gets you thinking.  How much of any one person's success is driven by luck?  How much of my success is driven by forces and variables outside of my control? 

I don't know if there's an easy way to answer that question, but I bet the answer would shock you.

Thoughts?

***

You might be interested in the following:

• Was Steve Jobs lucky, successful, or both? (Musings)

 

 

We're with you...

Advice...Let's Hear It

Written by Anthony Demangone

We've all received good advice through the years.  I'd bet there are one or two gems that you've heard that stand out.

The best advice I received?

1. You are always interviewing for your next job, whether you know it or not.  Your emails. Your attitude. Your work ethic.  So carry yourself accordingly. 
2. Do you know how to get your next job?  Do your current job to the best of your ability. 

I bring this up after reading this fun and useful post by Allison Green. Here's a snippet:

4. Never be good at anything you don’t want to do

“Never be good at anything you don’t want to do. Tongue somewhat in cheek — of course, as a junior person you have to get good at the grunt work before you’ll be given more interesting tasks. But as a general rule — the better you get at something, the more you’ll be asked to do it. The way to make sure your niche is what you want it to be is to make sure you’re best at those things!”

Read the post - there are a number of other interesting tips. 

But loyal readers, I now turn the tables.  What is the best advice you received?  Leave a comment on the blog, email me, or leave a comment on the Musings Facebook page. 

Get over it? No, embrace it.

Written by Anthony Demangone

Did you ever have one of those days that caused to you to doubt your choice to to manage - to lead people?

I can hear some of you out there...yes, I have those days.  They are called weekdays. 

In all seriousness, everyone has those moments. Moments of doubt. Or moments of frustration.

It could be tempting to tell you to simply get over it. But that minimizes the struggles that all of us will encounter along the way.  And telling someone who hits a rough patch to "get over it" is akin to telling a four-year-old to get over an earache.

Seth Godin saw a different path in his recent post, Just The Good Parts.

You don't get to just do the good parts. Of course. In fact, you probably wouldn't have chosen this path if it was guaranteed to work every time.

The implication of this might surprise you, though: when the tough parts come along, the rejection and the slog and the unfair bad breaks, it makes sense to welcome them. Instead of cursing or fearing the down moments, understand that they mean you've chosen reality, not some unsustainable fantasy. It means that you're doing worthwhile, difficult work, not merely amusing yourself.

And there you have it.  

The next time you hit that rough patch, remember this: Those patches are part of the job.  You won't see them in job descriptions, or job advertisements.  But they are there.

So embrace the challenges. They let you knew you've arrived. That you're needed. 

***

We're only 181 days away...

NCUA Shows Its Hand Again

Written by Anthony Demangone

NCUA recently held a webinar entitled "Examination 2013: What to Expect." 

If that didn't get your attention, I'm not sure what will. 

This is the equivalent of Sister Rose De Lima handing our eighth-grade class a cheat sheet before our final exam.

(Actually, that's probably not true.  Sister Rose would never have given us a cheat sheet.  If she were alive today and next to me, she'd likely smack the back of my head for thinking such a thing. She was tough.  And man, could she teach.  If you asked her to watch your dog, that poodle would be doing long division by the end of the day.)

OK, where was I...oh, yes.  NCUA tipped its hand.  If you didn't see the presentation, these two slides tell much of the story.

And this...

From this, it is VERY clear that NCUA is diving ever deeper into risk management, and expecting your credit union to do the same. 

So, who is the risk management Czar at your credit union?

***

You might also be interesting in the following:

• NAFCU's March 29th NAFCU Today article on NCUA's webinar.
• Ours is a Risky Business. (CU Musings Blog)
• Repuation Risk and Websites (NAFCU Compliance Blog)

Never Forget the Power of a Giggle

Written by Anthony Demangone

Yesterday, I had a little April Fool's Day fun with you.

The feedback was fantastic, and a bit surprising.  It came in two flavors.

1. Flavor one: That was the best post you've written! 
2. Flavor two: Boy, I needed that laugh.  Thanks!

Every week, I try to write on topics that are important to managers and executives.  But it was a post designed to make people smile that appears to have done the most good.

There's a lesson in all of this.  

Never underestimate the power of making other people smile. 

It doesn't have to be humor. It can be a kind word or deed. Or helping someone lift a box. Or lending an ear when a colleague had a bad day.

So, here's the challenge. (Myself included.)  Let's work to make some smiles out there today. 

We know what kind of world we want to live in. Do you want more smiles or less? I think many of us, myself included, fall into the trap of trying to "find" that world out there. 

I think the secret is, not to find that world, but to make it for others.

At My Sweater Vest Crossroads

Written by Anthony Demangone

You know how much I love NAFCU. But I have another love - sweater vests. In fact, I'm also the Acting President of the American Society of Sweater Vests. As much as I love NAFCU, it might be time to move on and devote myself completely to my sweater vest project.

Watch the video below to learn more.

I appreciate your time and patience as I work through this important life stage.

Three Personal Lessons from The Heart and the Fist

Written by Anthony Demangone

The book had been sitting on my desk for a year.  

It was a gift from a speakers bureau.  When I accepted the job to be NAFCU's COO, a number of people lined up to meet with me.  Many of them were trying to wedge their product or service into our hands, in the hopes that we'd buy their "widget." 

During one of those meetings, a speaker's bureau representative handed me a book.  The Heart and the Fist. 

"You should read this.  I really think you'll like it." 

The implication was clear.  You'll like the book, and you should hire its author to speak at one of your conferences. 

If someone hands me a book, or marketing materials, I make no promise other than to read it and give them a fair read.  A fair shake.

And that book had been on my desk ever since.  Unread.  For a year.

Fast forward a bit.  One of my colleagues hands me a list of possible speakers for this year's Board of Directors and Supervisory Committee Conference.  Included in that list was Eric Greitens.  And it noted that he was the author of The Heart and the Fist.  We ultimately selected Eric to speak at the conference.  And a few weeks ago, I saw that book.  Still on my desk.

OK, it was time to start reading.  

Over the course of last weekend, I started flying through the book, and annoying my wife.  Mandy, you won't believe this....I'd bellow from the living room.  Here's what I found.

The Heart and the Fist is a story of excellence.  Service. Hard work. Commitment. Strength.  Honor. And Compassion. 

It is an answer to those who say today's generation is selfish.

It is a portrait - almost a reminder - of how greatness is within us all.  Of what is possible.

It is the story of Eric Greitens. 

He's a Duke graduate. A pretty good boxer. An Oxford scholar. A photographer. A humanitarian. A Navy Seal. And a New York Times best-selling author.

He's visited nearly every continent and spent his time learning how to protect the weakest among us. The street children of Bolivia. The survivors of Rwanda. The sick and suffering of India.  Bosnian refugees. And the list goes on.  But while donations of goods and money are wonderful, sometimes the weak need protection. And that's what led Greitens to give up an offer to continue his studies in Oxford, and a job offer at a high-paying consulting firm, to take a gamble.  

To try to become a Navy Seal. Eric signed papers that committed him to the U.S. Navy for 8 years, and all it gave him was a chance to become a Seal. If he failed, he'd still owe the Navy those eight years. 

Greitens became a Seal, and he continues to fight for the forgotten.  For the weak.  I really look forward to shaking his hand in Asheville.

Greitens argues that one must possess both the heart and the fist. In his words... "Without courage, compassion falters. Without compassion, courage has no direction."  (Youtube.com)

As I finished the book, I came away with a number of thoughts.  But these three rang loudest.

1. Choose to make a difference.  There's good and bad out there.  We all have a choice.  To watch. To complain. Or to get involved.  But at the end of the day, it does boil down to a choice that all of us can make.  We all can choose to help others.  Nothing is stopping us. 
2. We underestimate ourselves, and our brethren.  Sometimes we talk about Michelangelo, or Beethoven, or Einstein, as if they are demi-gods. Not of our planet.  But read this book, and you'll see what a kid from Missouri can do if he simply leans into the world.  If he decides to make a difference.  I wish I had read this book, or a book like it, when I was 16.  We all can do amazing things.  But it does start with choosing to do so.
3. There is bad.  Sometimes I do fall into the trap of "things will work out."  The Heart and the Fist points out that for many people, things don't.  Through no fault of their own. If you want to help them, sometimes you'll need to stand up for them.  And that is never easy.

If you have a board member or supervisory committee member going to our conference in Asheville, they'll get a copy of Eric's book.  And they'll get to meet this amazing guy.  Ask them to lend you the book when they finish. 

You won't be sorry.

Two Lessons from the Telesis Community Credit Union Failure

Written by Anthony Demangone

NCUA's Office of Inspector General recently published a Material Loss Review (NCUA.gov, 32 pages) that serves as a postmortem on the failure of Telesis Community Credit Union.  You really should read MLRs. While you can learn from your own mistakes, I recommend learning from the mistakes of others. 

Taking the report at face value, there are many lessons to be learned.  I'll focus on two issues related to management and corporate governance. 

1.  Corporate Governance Matters.  The NCUA OIG criticized Telesis' management and board oversight.  This passage really caught my eye:

Based on our review of TCCU’s Board minutes, we concluded that managerial decisions were concentrated in two people, the CEO and the EVP, with very little depth or reliance on the skills of the rest of the Credit Union’s staff. The CEO appears to have had a persuasive and aggressive management style. The CEO was well known in the industry and viewed as strategically successful, particularly due to the historical success of BP. Thus, the Board tended to follow her recommendations with little discussion.

We found some of the minutes for both the Board and the Supervisory Committee were missing. Although the packets we did obtain contained voluminous reports, we found very little substantive discussion related to strategy, risk management, or related party activity. We were also unable to identify diligent follow-up on issues raised by examiners. We were told that the delivery of packets to Board members was so late that a thorough read and understanding of the details and trends was unlikely. (Emphasis added.)

2.  Information flow matters. From the report:

We determined TCCU’s management and Board made a series of questionable decisions. Specifically, examiners noted poor internal controls in the December 2009 examination (Effective), which observed that the internal audit function was neither adequate nor effective, and that the internal audit manager did not provide written recommendations or findings to the Supervisory Committee or Board of Directors. The internal auditor reported directly to the CFO. (Editor's note. For me, the issue isn't necessarily how the internal auditing function was set up.  But it sounds like the internal audit recommendations were not done, or did not get to the right people.)

Any credit union failure has many "fathers."  There's the economy, business risk, bad luck, and other factors that contribute.  And one should be careful when doing "failure analysis."  Of course there were problems at Telesis.  Otherwise, it would not have failed.  For that reason, you shouldn't generalize and take what happened there to be an indicator of what happens in other places.

That being said, I do believe that lessons can be learned.  Please consider passing this along to others at your credit union involved with your board and management team.

You might also be interested in the following:

• NCUA's Material Loss Review on Telesis Community Credit Union.
• NCUA's Material Loss Review Homepage. 
• NAFCU's Board of Director's and Supervisory Committee Conference, May 15-17, Asheville, NC.
• NAFCU's Online Training - A cost effective way to help meet training needs for your board and new employees.  It's wicked good!  (OK, I created it, so I may be a bit biased...) In all seriousness, it has a series of short modules designed to make sure everyone on your board understands risk management, NCUA, their role, interest rate risk, BSA requirements...and, well, you get the idea.  Click on the banner below for more details.  30-day money back guarantee, especially if my narrator's voice gets annoying.