The Competitive Edge for Credit Unions

Performance Improvement Tip

Conduct a Business and Management Review to Learn About a Member's Business

When providing credit solutions to meet a business member's needs, it's important to conduct a business and management review.

A business and management review can help you to assess the long-term stability and viability of the member's business and its management. Understanding a potential borrower's business also helps you to anticipate and be prepared for changes that affect the company's asset conversion cycle.

Financial statements show the results of what happened in the past, but loans are repaid from cash to be generated in the future. Identifying a company's growth stage helps you understand certain inherent risks and needs.

The business and management review process should include the following components:

• An interview with the prospective borrower
  
• Information gathering about the company and its market
  
• Using that information to judge the company's long-term viability
  

Learn more about improving your credit union's performance ...

Come See Omega

Business Lending and Other Business Services Conference
Williamsburg, VA
July 14, 2008
Topic: Building Successful Commercial Lending Strategies
Speaker: Dr. Jerry Crigger, Senior Consultant, Credit and Risk
More Information and to Register

Web Events You Won't Want to Miss

Leading People Through Change
Learn to Build your Change Resilience, Coach Your People to Commitment, and Increase Business Results
July 30, 2008
12:00 PM - 1:00 PM EDT
More Information and to Register


U.S. Personal Tax Return Analysis
August 12, 14, 19, 2008
12:00 PM - 1:30 PM EDT
11:00 AM - 12:30 PM CDT
9:00 AM - 10:30 AM PDT
More Information and to Register

Featured Solution

Product Mastery Solution Set
Move beyond traditional product knowledge training with four new solutions that help you and your staff capture more sales opportunities, cross-sell more products and services, and retain more members.
Find Out More

Quick Links

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The Competitive Edge for Banks

Credit

Loan Documentation: Why You Need It

Even the best loans may be unenforceable if the loan documentation is incorrect or incomplete. Proper loan documentation should capture all of the agreements, obligations, and remedies of the borrower and your bank in the loan transaction, leaving nothing unclear.

If the borrower defaults on the loan, proper loan documentation will support your bank's claims against the borrower in court.

Documentation is a complex topic, and changes in documentation can be driven by a number of factors, including credit policy, state and federal law, and recent court interpretations.

If a particular document is required by your bank's credit policy and the document is missing, examiners will note circumvention of policy. Also, the lender may face charges of negligence if a loss is incurred on the credit.

Learn more about improving credit performance ...

Sales & Service

Use Silence to Negotiate Effectively

Anyone who has ever been in a negotiation knows that just because you ask a question doesn't mean you'll get an answer -- right away.

One of the biggest mistakes you can make when negotiating financial partnerships is fail to appreciate the power of silence. If, after you ask a question, your partner doesn't respond immediately, avoid the temptation to respond yourself.

Instead, wait quietly for your partner to respond and watch for nonverbal cues. Such pauses in conversation encourage an answer from your partner and give your partner the time to think clearly.

While you are listening to and observing your partner's responses, take notes of the words and phrases he or she uses to express concerns and needs. Taking notes:

• Demonstrates that what your partner says is important to you
  
• Relieves your partner of the need to repeat the information later
  
• Gives you the opportunity to review the information later at your leisure
  

Learn more about improving sales and service performance ...

Leadership

Communicate 'Personally' When Leading Through Change - Part 3

One of the most important aspects of navigating through change is to always communicate on a personal level - whether you are conducting an in-person meeting, a Web meeting, or a conference call.

For conference calls:

• Conduct multiple calls for smaller groups
  
• Start with an introductory call for larger groups, then follow-up conference calls for small discussion groups
  
• Expect lots of silence -- especially with larger groups
  
• Be extremely well prepared to present succinct statements
  
• Keep your tone positive, supportive, and authentic
  
• Ask for concerns from opinion leaders ahead of time -- address the concerns head-on in calls; explain how other concerns will be solicited
  
• Prepare specific, open-ended questions to draw participation
  
• Put at least one positive opinion leader on each call
  
• Record calls for those who cannot participate
  

Learn more about improving leadership performance ...

One-Day Workshop

Advanced Cash Flow

Sydney, Australia July 22, 2008 - Melbourne, Australia July 23, 2008
Time: 8:00 AM - 5:00 PM - Fee: $790 plus GST per participant
More information and to register

Web Seminar Series

U.S. Personal Tax Return Analysis

August 12, 14, 19, 2008
12:00 PM - 1:30 PM EDT 11:00 AM - 12:30 PM CDT 9:00 AM - 10:30 AM PDT
More information and to register

New Solutions to Improve Business

Product Mastery Solution Set

Move beyond traditional product knowledge training with four new solutions that help you and your staff capture more sales opportunities, cross-sell more products and services, and retain more customers.

Find Out More ...

Featured Papers

A New Era in Retail Financial Services

Get your complimentary copy of Omega's guide to harnessing the profit potential in creating, advancing, and sustaining customer connections.
Download Now

Leading People Through Change

Available for download now is Omega's essential guide for building your change resilience, coaching your people to commitment, and increasing business results.
Download Now

Diagnosis: Cash-Ache Analyzing Business Borrowing Causes

See a key element of Omega's acclaimed Decision Strategy in action and gain insight into how to reduce analysis time, improve underwriting quality, and build more rewarding customer relationships in this complimentary eBook.
Download Now

Quick Links ...

Our Website | Events | Omega News | About Us | Complimentary Resources

The Competitive Edge for Community Banks

Performance Improvement Tip

Use Coaching To Achieve Scorecard Goals

To a great extent, the success of your bank depends on your managers' success as coaches. Yet, the reality is that most of us start out with negative perceptions of coaching in the workplace like it's all about criticism, it's just a big fad, or when it happens, it means you're in trouble.

Good coaching isn't about any of these things. Good coaching focuses on what people are doing well, not just on how they can improve. Good coaching can help managers and their teams achieve scorecard goals.

Scorecard coaching is a regularly scheduled, one-on-one conversation between a manager and an employee to analyze results, activities, and skills and knowledge focused on critical business goals.

The outcome is to develop an action plan for sustaining successes and making improvements. Employees are held accountable to measurable results and at the same time, are developing their ability to perform important activities that drive those results.

Bottom line - coaching helps both your bank and its employees.

Learn more about improving community bank performance ...

Web Seminar Series

U.S. Personal Tax Return Analysis

August 12, 14, 19, 2008 12:00 PM - 1:30 PM EDT 11:00 AM - 12:30 PM CDT
9:00 AM - 10:30 AM PDT
More Information and To Register

Featured Papers

A New Era in Retail Financial Services

Available for download now is Omega Performance's guide to harnessing the profit potential in creating, advancing, and sustaining customer connections.

Get your complimentary copy now ...

Leading People Through Change

Available for download now is Omega's essential guide for building your change resilience, coaching your people to commitment, and increasing business results.

Download Now

Quick Links

Our Website | Events | Omega News | About Us | Complimentary Resources

The Competitive Edge for Banks

Credit

You've Booked The Loan. Now What?

You've gone through the first line of defense in preventing a problem loan: good underwriting, structure, and documentation. You have the loan on the books. Now what?

It's time to put a process in place for controlling your risk by identifying and managing problem situations. Here's a five-step process you ought to consider:

1. Monitor - put yourself in a position to observe changes, if they occur.
   
2. Identify Warning Signals - know what signs to look for and whether those signs indicate an increased risk.
   
3. Analyze Signals and Identify Problems - get to the cause and effect of warning signs and determine the nature of potential problems.
   
4. Determine an Appropriate Strategy - set the direction for action depending upon the nature of the problem.
   
5. Execute the Strategy - follow through on your action plan to resolve the problem.

This is a continuous process that should be employed through the life of the loan.

Learn more about improving credit performance ...

Sales & Service

Set Ground Rules To Keep Meetings On Focus

A lot of things can go wrong in team meetings, and we all know they do. People come late and leave early, work on emails, have side conversations, and interrupt others ... just to name a few.

You may not be able to solve all of these problems and others that could occur, but a good place to start is to set some ground rules with your team and post those at the beginning of each meeting.

Here are some ground rules you might consider for your team meetings to ensure that you set a productive tone and get maximum engagement:

• Be on time and stay on time
  
• Be "present" - no walk-outs, cell calls, or email checking
  
• Stay on the topic
  
• Be prepared and offer constructive ideas
  
• Let others talk and don't interrupt
  
• Focus on the problem, not the person
  

Learn more about improving sales and service performance ...

Leadership

Communicate 'Personally' When Leading Through Change - Part 2

One of the most important aspects of navigating through change is to always communicate on a personal level - whether you are conducting an in-person meeting, a Web meeting, or a conference call.

For Web meetings:

• Keep the number of visuals to a minimum - only those with maximum impact and those which clearly tell the truth about the change
  
• Personalize the presentation with relevant real-life stories - avoid a simple recitation of the slides
  
• Use the full functionality of the Web conferencing software to enhance and enliven the meeting
  
• Use streaming pre-recorded video and live video feeds wherever possible
  
• Use participant feedback systems wherever possible

Next week, we'll look at how to conduct a personal conference call.

Learn more about improving leadership performance ...

One-Day Workshop

Advanced Cash Flow

Sydney, Australia July 22, 2008 - Melbourne, Australia July 23, 2008
Time: 8:00 AM - 5:00 PM - Fee: $790 plus GST per participant
More information and to register

Web Seminar Series

U.S. Personal Tax Return Analysis

August 12, 14, 19, 2008
12:00 PM - 1:30 PM EDT 11:00 AM - 12:30 PM CDT 9:00 AM - 10:30 AM PDT
More information and to register

New Solutions to Improve Business

Product Mastery Solution Set

Move beyond traditional product knowledge training with four new solutions that help you and your staff capture more sales opportunities, cross-sell more products and services, and retain more customers.

Find Out More ...

Featured Papers

A New Era in Retail Financial Services

Get your complimentary copy of Omega's guide to harnessing the profit potential in creating, advancing, and sustaining customer connections.
Download Now

Leading People Through Change

Available for download now is Omega's essential guide for building your change resilience, coaching your people to commitment, and increasing business results.
Download Now

Diagnosis: Cash-Ache Analyzing Business Borrowing Causes

See a key element of Omega's acclaimed Decision Strategy in action and gain insight into how to reduce analysis time, improve underwriting quality, and build more rewarding customer relationships in this complimentary eBook.
Download Now

Quick Links ...

Our Website | Events | Omega News | About Us | Complimentary Resources

The Competitive Edge for Credit Unions

Performance Improvement Tip

Ask Good Questions During Coaching Conversations

Asking questions during member experience coaching conversations with your employees gets them thinking about the quality of the member experience they deliver and helps them feel a sense of ownership.

Asking questions also helps you as a coach see what the employee has already figured out and lets you check the employee's level of competence and commitment.

Importantly, effective questions in a coaching conversation let the employee know immediately that the conversation is not about being told what to do. Good questions make employees think and take responsibility for the activities, skills, and knowledge that will drive their results.

Often, employees have great ideas about how to improve. They just get busy or stuck in a rut and fail to stop and think about how they might connect more effectively with members.

By having regularly scheduled member experience coaching conversations - and asking good questions - you give your employees the protected time to collaborate with you on how they can enhance the member experience and their business results.

Learn more about improving your credit union's performance ...

Featured Paper

Leading People Through Change
An Omega Performance resource to help you improve business.

Available for download now is our essential guide for building your change resilience, coaching your people to commitment, and increasing business results.

Download now ...

Come See Omega

Business Lending and Other Business Services Conference
Williamsburg, VA
July 14, 2008
Topic: Building Successful Commercial Lending Strategies
Speaker: Dr. Jerry Crigger, Senior Consultant, Credit and Risk

Quick Links

Our Website | Events | Omega News | About Us | Complimentary Resources

The Competitive Edge for Banks

Credit

Prevent Problem Loans with Proper Loan Documentation

One way to minimize loan losses in your commercial loan portfolio is to ensure proper loan documentation.

The purpose of loan documentation is to create a record of the terms of the agreement to borrow and lend money. Proper documentation supports your bank's right to be repaid.

Incomplete or inaccurate documentation can make the obligation to repay or the terms of the obligation questionable. This can jeopardize your ability to collect on even a loan that is underwritten prudently.

Your internal processes for reviewing and completing a loan agreement should include those that:

• Ensure that the agreement fits the terms of the deal
  
• Use clear language
  
• Specify covenants that are clearly defined and reasonable
  
• Don't contain unnecessary terms or verbiage
  

Learn more about improving credit performance ...

Sales & Service

Capture Attention in Team Meetings

Meeting participants tune out fairly quickly if you don't focus them on something that gets their attention in the first few minutes.

By framing the meeting's purpose, outcome, and agenda and creating an opening attention-getter, you can really wake people up and engage their energy.

The attention-getter can be something humorous, big news, or a sobering wake-up call. It can include analogies or stories, or can incorporate something tangible that helps drive home a point. The key is it must relate to the purpose and desired outcome of your meeting.

You don't have to be fancy with the opening attention-getter in your team meetings. The idea is to engage people in a creative way that will:

• Wake up their brain cells,
  
• Maybe make them laugh, or
  
• Perhaps give them a wake-up call.
  

Learn more about improving sales and service performance ...

Leadership

Communicate 'Personally' When Leading Through Change

One of the most important aspects of navigating through change is to always communicate on a personal level - whether you are conducting an in-person meeting, a Web meeting, or a conference call.

For in-person meetings:

• Take advantage of the opportunity to "show things" that support the need for change
  
• Create opportunities for direct, honest participation
  
• Disperse positive opinion leaders throughout the group to create a supportive atmosphere and help employees see the value of the change
  
• Chart concerns and commit to responding honestly right then or at a specific scheduled meeting
  
• Be relentlessly honest in discussing both the benefits of the change and the challenges

Next week, we'll look at how to conduct a personal Web meeting.

Learn more about improving leadership performance ...

One-Day Workshop

Advanced Cash Flow

Sydney, Australia July 22, 2008 - Melbourne, Australia July 23, 2008
Time: 8:00 AM - 5:00 PM - Fee: $790 plus GST per participant
More information and to register

New Solutions to Improve Business

Product Mastery Solution Set

Move beyond traditional product knowledge training with four new solutions that help you and your staff capture more sales opportunities, cross-sell more products and services, and retain more customers.

Find Out More ...

Featured Papers

A New Era in Retail Financial Services

Get your complimentary copy of Omega's guide to harnessing the profit potential in creating, advancing, and sustaining customer connections.
Download Now

Leading People Through Change

Available for download now is Omega's essential guide for building your change resilience, coaching your people to commitment, and increasing business results.
Download Now

Diagnosis: Cash-Ache Analyzing Business Borrowing Causes

See a key element of Omega's acclaimed Decision Strategy in action and gain insight into how to reduce analysis time, improve underwriting quality, and build more rewarding customer relationships in this complimentary eBook.
Download Now

Webcast Replays ...

Corporate Finance: Viewing Investment Decisions Through Your Customers' Eyes

Originally aired May 15, 2008
More information and to register

The Profit Potential in Creating, Advancing, and Sustaining Customer Connections

Originallly aired March 25, 2008
More information and to download

Unraveling the Mysteries of K-1s and Pass-Throughs:
The Secret to Understanding U.S. Personal Tax Returns

Originallly aired April 15, 2008
More information and to download

Quick Links ...

Our Website | Events | Omega News | About Us | Complimentary Resources

The Competitive Edge for Contact Centers

Tip of the Week

Maintain a Personal Touch for a More Memorable Customer Experience

Customers form an impression of the agent who answered their call and your organization within the first 5 to 10 seconds of the phone conversation. That impression is formed based on how the agent sounds and what he or she says.

The sound of an agent's voice can say everything about his or her sincerity, energy, and attitude. Feelings, regardless of the source, can jeopardize the customer contact.

An agent's voice also conveys uncertainty and discomfort, so it's important for them to develop confidence in their ability to communicate effectively by phone.

Here are a few key points to consider in establishing service excellence in your center:

• Agents should reach ... with their voice - People respond well to a friendly voice. Nobody likes to listen to someone who sounds like a machine.
  
• Agents should use a friendly voice - A friendly voice smooths the way for a productive call. Since callers can't see them, agents should smile through the phone - and speak clearly.
  
• Agents should listen ... and respond - While they are smiling, they should also listen. Who's on the other end of the line? Does the caller sound busy? Agents have to adjust - sound a little more crisp and business-like. Does the caller sound flustered or confused? Agents should slow down, so the caller feels welcomed.
  
• Agents should put the call on a personal level - Responding to people's feelings and their tone of voice helps to assure that the agent is really there to help them the way that they want to be helped. You want them to be thinking, "This is someone I'd really like to meet," or "I'm so glad I got this person on the line."

Learn more about improving contact center performance ...

Feature Paper

Leading People Through Change
An Omega Performance resource to help you improve business.

Available for download now is our essential guide for building your change resilience, coaching your people to commitment, and increasing business results.

Get your complimentary copy now ...

New Solutions to Improve Business Performance

Product Mastery Solution Set

Move beyond traditional product knowledge training with four new solutions that help you and your staff capture more sales opportunities, cross-sell more products and services, and retain more customers.

Find Out More ...

Come See Omega

ICCM Canada Conference & Expo

When: October 8, 2008
Where: Toronto, Canada
Topic: Building Corporate Capability and Cutting Training Time through Product Knowledge Reference Tool
Speakers: Caroline Gray, Omega Performance Senior Vice President, Information Technology and Technology-Based Learning and Jeff Lachenauer, EQUI-VEST Training Manager for AXA Equitable

More information and to register

Quick Links ...

Our Website | Events | Omega News | About Us | Complimentary Resources

The Competitive Edge for Banks

Credit

Minimize Commercial Loan Losses

The best strategies for minimizing loan losses in your commercial loan portfolio include proper underwriting, structuring, and monitoring, and the use of effective strategies in situations involving increasing risk.

By doing these things deliberately and systematically, you will be more effective in preventing and minimizing problems. The key elements are managing loans effectively, taking strategic action, and optimizing the outcome for your bank.

Some of the signs pointing to a potential problem include:

• A call from the borrower
  
• Not meeting forecasts
  
• Missing a payment
  
• Covenant violations
  
• Late financial information
  

Learn more about improving credit performance ...

Sales & Service

Boost Customer Satisfaction and Loyalty

Providing an outstanding customer experience is key to creating lifetime customers that choose to do business with you and refer prospects to your bank.

Here are three ways to boost customer satisfaction and keep customers coming back:

• Build strong customer connections by getting to know your customers. Ask questions that require them to open up to you so that you can get a true sense of what they want and need.
  
• Offer the best products suited to their needs. Recommending products or services that aren't a good fit will only work against you when trying to build trust and instill a sense of honesty with customers.
  
• Go above and beyond the business at hand to show you value your customers' business. Follow-up with them by phone or schedule a meeting to ensure that they are happy with their purchasing decision.

Learn more about improving sales and service performance ...

Leadership

Be An Effective Leader - Here's What It Takes

Strong leadership at every level of your bank is critical to the success of any business plan.

Strategies to minimize problem loans and maintain credit quality, provide an outstanding customer experience and increase loyalty to your organization are likely to get off track - or at the extreme, fail - without the direction and momentum quality leadership provides.

The most effective leaders:

• Are active listeners
  
• Have integrity
  
• Are self-confident
  
• Express gratitude for a job well-done
  
• Coach employees and provide feedback
  

Learn more about improving leadership performance ...

New Solutions to Improve Business

Product Mastery Solution Set

Move beyond traditional product knowledge training with four new solutions that help you and your staff capture more sales opportunities, cross-sell more products and services, and retain more customers.

Find Out More ...

Featured Papers

A New Era in Retail Financial Services

Get your complimentary copy of Omega's guide to harnessing the profit potential in creating, advancing, and sustaining customer connections.
Download Now

Leading People Through Change

Available for download now is Omega's essential guide for building your change resilience, coaching your people to commitment, and increasing business results.
Download Now

Diagnosis: Cash-Ache
Analyzing Business Borrowing Causes

See a key element of Omega's acclaimed Decision Strategy in action and gain insight into how to reduce analysis time, improve underwriting quality, and build more rewarding customer relationships in this complimentary eBook.
Download Now

Webcast Replays ...

Corporate Finance:
Viewing Investment Decisions Through Your Customers' Eyes

Originally aired May 15, 2008
More information and to register

The Profit Potential in Creating, Advancing, and Sustaining Customer Connections

Originallly aired March 25, 2008
More information and to download

Unraveling the Mysteries of K-1s and Pass-Throughs:
The Secret to Understanding U.S. Personal Tax Returns

Originallly aired April 15, 2008
More information and to download

Quick Links ...

Our Website | Events | Omega News | About Us | Complimentary Resources