"If it doesn't pass any of those thresholds, the idea gets stopped at the front door," suggested Smigielski, who retired last January from the $1.1 billion Walnut Creek CU after 17 years on the job and winning for his CU an array of top national honors from human resources groups as a best place to work.
Before he left the job, Smigielski maintained a 1.7% operating expense ratio at Pacific Service with its 110 employees and five branches.
"Don't be afraid to hire consultants to help you or to bring in temporary help, perhaps allow more overtime or use floaters to switch between departments," advised Smigielski, explaining the CU's ability to recruit some very valuable talent over the years.
The former California CEO made his remarks during a workshop session at the 31st annual National Directors' Convention held at the Venetian Resort and Casino in Las Vegas. The convention drew a record 2,000 CU volunteers and executives.
He said his CU, unlike a number of other California CUs spilling red ink, has been fortunate "despite tight margins and the poor economic environment" in avoiding some of the pitfalls of chasing ill-conceived commercial loans and steering clear of alternate mortgages or broker business.
"I talked to our CEO [Steve Punch] before coming here, and he did tell me we are making money, but it's not a lot," commented Smigielski.
Referring to his management practices, the Californian said he was always inspired by so many good ideas brought to him by his top managers, but then "the real task is to sort out the good ones based on my test."
Key criteria that frequently get overlooked include: does the member really want this product or service, and does the CU have the capability, the manpower and the financial resources to deliver?
Sometimes a CU needs consultants and budget experts on board to help evaluate those ideas, and there should be no shame in hiring them, said Smigielski, who relied on his own methodical background in engineering to guide him at the helm of Pacific Service, which grew from $55 million to its present size. Under his leadership, Pacific doubled its membership from 35,000 to 70,000.
"Throwing bodies at a problem" is not a solution, he warned, suggesting CUs should examine the work patterns of its employees to get the maximum return and that might mean offering costly benefits. As testimony to the CU's HR record, Pacific Service in 2006 was named as the "second best place to work" in its category by the Society of Human Resources Management.
Smigielski, who was joined in his presentation at the Directors Convention by Independence, Mo., consultant Rory Rowland announced that the two would be inviting CU directors to get more information on their views about cost control in two separate Webinars scheduled this fall. Details will be forthcoming, he said.
--jrubenstein@cutimes.com
