Consultant stresses concept of `thinking outside the box'

SAN DIEGO - "Re-enginnering" and "thinking outside the box" - business concepts that were first discussed nearly a decade ago - are equally valid today and should be adopted by credit unions if they want to succeed in the new millennium, according to a marketing and management consultant. Rather than doing things the "way we've always done them in the past," Hal Lefkowitz, president of Hal Lefkowitz and Co., in Solana Beach, Calif., suggests that credit unions "start with a clean page" to redesign their systems, procedures and processes. "We ought to reflect on why we do what we do today," Lefkowitz said. "The answer so frequently is, `That's the way we've always done it.' "Here we are in a brand new century and it's probably time to think about (the fact that) just because we've done something like x or y or z in the past, why can't we change that." He advised credit unions,"When you start the process of re-engineering, start with a clean page. Don't go back to what you used to do." Lefkowitz said the key thing for credit unions to focus on and to respond to was the member. "You can't know enough about your members," he emphasized. "The whole idea is respond to your member." To do that, he suggested credit unions utilize member research, marketing strategies and member satisfaction surveys. "It all starts by understanding who your target member is," Lefkowitz said. He then went on to outline the four market segments (mature adults, baby boomers, Generation X and Generation Y), all of which he noted had different needs and all of which required different marketing strategies. "I'm convinced that you can't really understand how to deliver goods and services, particularly services to credit union members, unless you understand these principles," Lefkowitz said. "Understanding the demographics in the segments of your target customer means the difference between doing a lot of business with target customers versus just a little business," he added. Other areas that he touched on: * Make sure credit union employees are service minded, well-trained and are willing and empowered to build and maintain relationships with members. "The whole ability to build and maintain relationships is what it's all about," he said. "If the people working at the credit union aren't happy, your customers aren't going to be happy." * Continual improvement. "What we're doing right today probably is going to need to be changed or modified the next day mostly because of the forces of our economy," he said, citing both technology and the aging of society. * The need for credit unions to have the financial resources "to do what it takes to serve the members." * The importance of conducting surveys, including gathering information about member satisfaction. "Change is good," Lefkowitz said. "Today, change is necessary, fostering out-of-the-box thinking, meaning, don't worry about what you used to do. Let's be innovative." Lefkowitz noted that implementing change may require numerous attempts. "Don't give up," he said. "If it's not working right the first time, go back to the drawing board and find out why and fix it. "Let's really get down and find out what we can do today to serve members needs tomorrow and for the next millennium," he said. -pjheller@west.net