It is crazy how quickly a once thriving CUSO cansuddenly find itself on its back sucking for air and worrying aboutits future. I have seen this many times and the answers usuallyaren't buried that deep. Let's examine some of the ways on how notto get derailed so quickly.

Manage your financials

Most of the problems in an organization can be diagnosed bygoing through your financial data. If you aren't an accountingexpert, find someone who is and have them help you analyze yourincome statement, balance sheet and cash flow forecasts. Nine timesout of 10, you can gain a better understanding of your problems bybetter understanding your financials.

Include yourself in IT decisions

Purchasing “must haves” and “best of breed” everything willcatch up with you over time. Sometimes, the cost to purchase a newproduct or service can pale in comparison to the maintenance costsover three or four years. Don't build something that is tooexpensive to maintain. Look for strong low cost alternative ITproducts. Get your IT staff into the practice of submitting allrequests with a three-year cost of ownership and at least two otherproducts they reviewed before making this recommendation.

Diversify your product line

Product diversification over time is important. The CUSO mayhave been created for a specific purpose, but technology, memberneeds, regulations, all change, and what makes your CUSO valuabletoday may not work tomorrow. Keep an eye on emerging trends anddon't be afraid to examine adjacent markets for possibleopportunities. 

People hire mirror images

If you have a human resources department or management team withsocially extroverted personalities who are not especiallytechnical, they will tend to hire outgoing people that everyonelikes who don't have a technical background.  Why, becausethey aren't focused on hiring for technical aptitude.If you have ahiring manager who can be a little negative, they may tend to hirefolks with the same characteristics. Your employees are yourbiggest asset, and corporate culture is very important. As ageneral rule, hire slow and fire fast.

Stay true to your mission

Your CUSO was designed to service your credit unions. Bycollaborating with one another, credit unions can use the CUSOmodel to bring down costs, improve service, and remain competitive.The purpose of the CUSO isn't to pay huge dividends and giveendless discounts. No one wants to belong to an insolvent CUSO.Purchase what you need, set cash aside for a rainy day, and thenaddress discounting.

Share your passion

Your employees and your credit unions need to know and shareyour vision. If no one is following your lead, it's probablybecause you are the only one who knows where you are going andthat's probably not a good thing. This lack of leadership dragseveryone down, and you start wondering why no one is buying yourproducts or attending your events. Communicate often and bespecific.

Pay attention to industry trends

Have you ever seen a nature show with prairie dogs? With mystaff, I use the example of how they eat in the wild. While mosthave their heads down eating, at least one is sitting up keeping alook out for predators to make sure no one in the group gets eaten.You are the lookout prairie dog in this scenario. Keep your head upand communicate to your staff what is happening in the industry.Read the trade publications, listen to your clients, talk to yourmanagers and keep your head up.

Form strategic alliances

If you think you know all there is to know, your CUSO willeventually go out of business. I can guarantee you. You need tounderstand that partnerships help you grow and that closed systemseventually implode or wither and die.

Jim Giacobbe is president/CEO of United SolutionsCo.
Contact 866-942-9186 or [email protected].