Mis-quotes, status-quos, and mentors...

I apologize for the length, I had several thoughts to share...

Two days ago, I found out that my interview with the CU times, turned into an article. Awesome!! Unfortunately, the quote of the day, wasn't a quote after all.

George Hofheimer pulled together three "Gen Yers" to help him present on Credit Union 2.0 at the TCUL annual meeting this past month. Amy Stanton, AVP/Marketing from Connex CU, Trey Reeme, Director of Channel Integration from TDECU, and myself co-presented and fielded questions from a group largely full of Boomers and Baby Boomers. The presentation was great, we had some awesome questions, and we were able to answer a few questions about "our" generation.

Evidently we made enough waves that we got the attention of the CU times. The article "Generation Y breaks the news to Texas CU and League Executives: 'You're Boring' " made a few shock waves. Not the boring part, but instead the misquote:

Reeme, the former executive vice president of Trabian, a Plano, Tex., marketing agency, also suggested that those 60-plus-year-old directors looking at the industry’s future should seriously consider stepping down to make way for a generation more connected to new technology.

Why is Trey thoughts not in quotation marks you might ask? Well, he didn't say it. When I saw that Trey said the CU industry is boring, I thought well, yea, you might be able to say that. But to suggest that all 60+ Board members should step down. Well, that one threw me for a loop. At the presentation Trey had several of his own CU's 60+ Board members present. And that wasn't the message at all.


So after you read the article. What does it come down to? Here are my thoughts on this issue, straight from my keyboard to your computer screen. I only have one issue with how most Boards are ran in the CU industry. And like Trey I don't suggest that the majority of CU board members (which are likely 60+) can't run a CU that successfully attracts and meets the needs of Gen Y.

1. Credit Union boards are comprised of volunteer individuals that are elected to represent the CU membership and their purpose is to set and reassess the direction of their CU.

My issue: The Board is very often elected by acclamation, because all positions run unopposed. The Nominating and Election Committee for the board, will do what they are comfortable with. If a board member is up for reelection, they renominate them. In the event that a Board member retires, resigns, or dies, the Nominating and Election Committee, will elect one of their own to replace them. Therefore, no "new blood" ever can get in. But with all that being said, how can I expect the N&E committee to go looking for 30 year olds that are qualified to get on the Board AND actually want to sit through a board meeting. The challenge is there.

How can we resolve it: I am not sure I have the magic suggestion to change it. Lets say, I left TFCU for a job outside the industry (won't happen.) I would immediately pursue a nomination and election to the Board. First, with my application, would the N&E committee nominate me. Not likely if one of their own is up for re-election. Second, I would need to get 500 signatures (varies based on CU bylaws) on my petition for nomination (I could pull this off.) Third, looking at the voting members present at the meeting, who would vote for me over a renominated member. All that being said, my quote in the article is right on:

“Look, my whole family life has been about my credit unions, my mom works in one, but I also see how difficult change is in credit unions,” said Sugg who said he would “absolutely love to be on a credit union board” though he knows that may not happen soon based on CU governance. (I should mention that the quote is pretty accurate, but I never start a sentence with "look")


I am also contributed with:

Sugg of Tinker said he too agreed with Reeme’s general assessment, but he said the “status quo and atmosphere” problems emanate from aging boards. “How can you justify attracting a young membership when you have board members all over 60?” asked Sugg.

As I told the reporter after he asked for my response to Trey saying the industry is "boring," I said that "I wouldn't say that it is boring, but I would say that we don't like to challenge the status-quo, as it is something that we are comfortable with." The vast majority of all corporations and Financial Institutions maintain "older" boards. They attract young people all the time. Getting a voice and an understanding on the board of who our Generation is the important part, replacing them isn't justifiable. Change is difficult and slow. Gen Y is definitely difficult, but we change (for the better) on the fly.

Does your CU board represent your membership base? It goes back to what CU's were founded on. The founders challenged the status-quo and made something better. To make something stronger the best thing to do is challenge it. To make the board even stronger challenge it. If the members remain the same, great, if they are challenged than that means the right people are there.


I recently talked at our local chapter meeting in March. My main topics was that I hope that all of those 60+ somethings that are getting close to retiring, make a huge effort to pass on all of their experience and knowledge to the younger generations. Young managers and leaders like myself didn't get to experience the last 30-40 years on the CU movement, we can't read about it in history books, we need to learn about it from today's leaders so that we can be better leaders, tomorrow. Our Board and leadership is the best resource to future leaders for learning and growth. As we develop learning the past experiences is an important part in creating the future.

Learn from the past, experience in the present, grow for the future!!


Disclaimer: This post is reflective of my thoughts and concerns. It doesn't reflect the thoughts, opinions, or ideals of The Filene Research Institute or Tinker Federal Credit Union or any of their employees or representatives (other then me of course.)

So Kent, What Do You Do?

That is the question that has been posed to me by just about everyone at TFCU over the past 4 months. The scary thing. My wife asked me this last week. And I give her a daily recap, every day!!

Here is a typical Q & A of a conversation that follows the "titled" question:
(For the purpose of this conversation, we will call the employee I am talking to Ben)

Ben: So Kent, what are you doing now?
Kent: I am on a Radical Sabbatical with the Filene Research Institute, focused on implementing some really innovative projects that their i3 teams created.
Ben: Um, Okay...
Kent: Filene is a organization that supports the Credit Union Movement through open source innovation and academic research. I am helping them focus on implementing the innovation. So I am talking with credit unions about why the three projects that I am working on are so cool. TFCU loaned me to them for 6 months.
Ben: So what do you actually do?
Kent: I work on the Internet a lot, and I am on the phone a lot. I work with Maureen from Madison, she is basically a mentor, teaching me a whole bunch of stuff, she does most of the writing and stuff, while I host a blog, call CUs, and keep track of all the people we talk to. We are a very good balance for each other. She keeps me focused, I keep her from focusing too much. What we do changes a bunch, but we basically just put all our efforts into pushing our projects forward in implementation.
Ben: So do you travel and stuff?
Kent: Yea, I travel some. I have been few places for meetings with Filene, but I have also been able to go and tell people about the projects and about the cool things that Filene is doing.
Ben: Do you like it?
Kent: I love it. I have met some amazing people in the Credit Union movement. I am working with a team from the 30 under 30 group with Filene focused on Gen Y. I have met people at CUNA, CUES, the World Council, Texas CUL, oh and I have made about 30 new friends on twitter.
Ben: Twitter?
Kent: Yea, it is like a super IM. I have group conversations with CU people from all over. Alberta, Canada, Maine, Cali, Texas, Wisconsin, Washington, North Carolina, and more. It is a cool way to talk about things going on in the CU world, without leaving my desk.
Ben: So what are you going to do when your 6 months are over?
Kent: I don't know. I will be done in June, and I will be back focused strictly on TFCU. Whatever I do, I know that I want to maintain all my contacts from Twitter and other social media. I also know that I have seen a lot of really cool things, that could really help TFCU. It's awesome being a part of something as big as the Credit Union Movement.
Ben: Cool. (Walks off and stops to talk to his buddy Ryan)

Ben to Ryan: "See I told you, Kent just plays on the Internet all day, he even said something about that cartoon character Tweety."


So What do I do?? Simply put, for 6 months, Maureen and I are doing everything possible to move the needle of implementation for MatriMoney, Prize-Based Savings, and the Savings Revolution.

Bring on the Implementation

So I finally make it up to Madison, WI, the center of CU world and otherwise known as "Mad City." The very first thing on my list of to-dos over the next 2 days is walk on the frozen lake. In Oklahoma, lakes dry up in the summer, they don't freeze in the winter. But being the dare devil that I am and seeing all the crazy ice-fisher guys out in their little tents, I brave the cold and ice and find myself on the frozen lake, alone and cold.

I will say that the trip did get a bit warmer, I got to meet dozens of great credit union people. I had the pleasure of touring the Credit Union Center, CUES, and even a little of downtown. I have two thoughts that stuck out more than anything from my tours:

First: The Credit Union Movement changes lives. I used to think it just consumed them for people like myself, but it really does change lives. While touring the World Council, I was able to see what all we do for people who are truly impoverished. If you are not already supporting the World Council in some way, I challenge you to do so. The Credit Union Movement makes differences in the lives of hundreds of thousands of people. I hope one day 40 years from now I can look back and know that I was a part of something so huge.

Second: Credit unions can make a difference and they can change. What credit unions have done in the past is amazing, what we are doing the present is awesome. But if we want to do more then just exist in the future, but really expand to provide great and fair services to people all over. We need to not just talk about change, and admire change, but we must make change happen. The world is changing at a sprint, credit unions can't take baby steps and think that they will keep up. I challenge you to not just talk about change but embrace it and keep the Credit Union Movement moving forward.

I want to say thanks to Maureen for setting up such an action packed 2 days in Madison. I got to meet alot of great people that I look forward to working with in the future. I believe that we as a movement can make a difference in millions of lives that don't know what a credit union is yet. "People helping People" is what we were founded on, and it is what we will continue to do.

How do we make a difference, how do we make change happen? You guessed it, IMPLEMENTATION. That's where you come in...

Deal or No Deal

I have no doubt that all of you have heard of this new game show by now. It is like "Who wants to be a Millionaire?" without the tough questions, just tough yes or no decisions. All you do is play a game of luck and chance, with the ability to make an educated decision. My wife loves the show, I do to a point. I find it very intriqueing to see the process that someone goes through to make the decision of when to sell their case, as most of them do. Even during the current "Million dollar Mission" where half of the board has $1,000,000 in the cases. The person has a 50/50 chance of getting a million. yet nobody wins the million, even those that have it in their case, sell it becuase they would rather be garunteed several hundred thousand then they would take the risk of getting next to nothing if they pick the wrong case.

Why do we also settle on less instead of take the chance to lose it all? Here is a few suggestions.

The always popular proverb "A bird in the hand is worth two in the bush;" is ingrained into our minds and grabs hold of us. Wonder why this is, well the proverb has lasted about 2500 years, and has variations in almost a dozen languages. It is found in one of Aesop's fables, a hawk seizes a nightingale, who pleads for its life, arguing that it is too tiny a morsel to satisfy a hawk. The hawk replies, "I would be foolish to release the bird that I have in my hand to pursue another bird that is not even in sight."

(I recently learned of its origin in the book that I am reading. Made to Stick by Chip and Dan Heath. I am not much of a reader but this book has captured me.)

Question: Would you trade $100,000 for a 1 in 5 chance at winning $1,000,000.??

Answer: I would bet that almost all of you would rather take the garunteeed $100k instead of a 20% chance at a million. I would.

Life is risky in so many ways, but when an individual is provided a garuntee, it holds much more value than a good chance at something much bigger.

So now we know why NBC hasn't given away their million dollars yet. How does this relate to the Credit Union movement? Well I think it is interesting to see how individuals will take risks with their money, but when it comes down to the end and the ultimate risk is there, they almost always settle for the safe answer. Credit Unions can provide the best of both worlds. We can be the safe alternative to other riskier asset accumulation methods, but we can use an individuals willingness to take risks to help them save money. That is the idea behind products like a Prize-Based Savings account. We appeal to the risky side while providing nothing but a safe place to store their money.

By the way. My wife and Mom want me to submit an application to be on the show, I think it might be a good idea, the only problem, is that I might be the first person, that refuses to deal money with a banker. I am more of a Credit Union guy. And they don't want to buy my box back, they want to help me get to that million dollars.

It's not i2 it's i3

Completing the circle of i3... Ideas, Innovation, and Implementation.

Those are the three i's that the Filene i3 group is based on. But how successful has the i3 team been in meeting those objectives. Take a look at any number of their projects and you can see that they have been very successful at the first two. The i3 group hits extraordinary highs when it comes to creating new innovative ideas that can help Credit Unions expand their services to meet the changing member needs. But it seems there are challenges when it comes to implementation? Phil Smith an i3er from Minnesota coined the title phrase this afternoon, he is absolutely right, it is the Filene i3 group, not i2.

What good is having innovative ideas if those ideas to don't get back to the membership? Filene has been working towards providing the ideas and tools necessary for CUs to implement. Now Filene is stepping up their game. Maureen and I will be putting together proof of concepts for each that make it easier for CUs to take an idea and implement it. Anyone who has worked in the innovation process should know that not all ideas make it to the front-line, but as a CU we need to make sure that we implement as many as we can. Filene and CUs nationwide find themselves in similar circumstances, a whole bunch of a great ideas, without the ability to implement them all. We need to take the best and one by one make them available to the members.

As a Credit Union it should be your mission to make sure that you have the best products and services available to your members, to do this you need to be implementing, because innovation without implementation does nothing for your members.

Who am I?

Who am I:
Good question. Well in my profile it says my name is Kent Sugg. That is true. It also says my profession is banking. Well close, my profession is actually Credit Unioning, and since that wasn’t an option, nor is it a word, I chose banking. I should explain. My business card says that I am a Manager, Member Services at Tinker Federal Credit Union. Most days I carry the title well. But for the next 6 months, it is just my title. Who I actually am is the side-kick to the Director of Innovation Projects for the Filene Research Institute. Okay, I know what you’re thinking, you’re thinking, well side-kicks aren’t very important. Well now you know why I kept my title as Manager, Member Services.

Why I am writing this:
For the next 6 months, I will be working on the implementation of a few of the Filene Research Institute’s i3 Innovation projects. Maureen Maddox and I (she is the one with the important title, it’s an experience thing) will be working our tails off from different parts of the country to create and execute implementation strategies for these lucky products. The purpose of this blog is for me to document my experiences with the Sabbatical.

What will I write about:
The vast majority of this blog will be focused on the progress of the three Filene i3 projects: Savings Revolution, Prize-Based Savings, and MatriMoney. It will have tons of information that doesn’t go out in Press Releases about the experiences of Credit Unions in regards to innovation and even more importantly the implementation of all those great ideas. In addition to product information I will talk about my Radical Sabbatical Experience and even a few thoughts on the Credit Union movement.

My Credit Union Experience:
TFCU is the only place I have ever had a savings or checking account. I have worked for TFCU for 5 years. I was previously a teller, Member Service Officer, Teller Supervisor, and most recently a Manager. I have worked on several projects including the GenNext project at TFCU, which will be mentioned in future posts I am sure. I will also be mentioning Southwest CUNA Management School some, as I progress through my Three-Year Strategic Planning Project. Perhaps the biggest honor of my Credit Union career is being elected President of the Class of 2009 at SCMS.

My family history in one paragraph:
I am blessed to be the father of an amazing one-year old boy, Kaven, who has me trained well. I am also proud to report that his favorite word is “dada” and his favorite food Macaroni and Cheese. I met my wife, Thea (pronounced Tia) at TFCU 5 years ago, she wouldn’t go out with me because I was only 19, but we married a year later, so that worked out. She is currently a teller supervisor and aspires to be a stay-at-home mom. My dad is the manager of a glass business, he kicked me out of that line of work at 15, (Thanks Dad!!) so at 18, I went into my mom’s line of work. She is currently the HR Director at a Credit Union in Oklahoma City. She worked for TFCU for several years, and is probably the reason I got hired in the first place. She also did consulting for 5 years with numerous Credit Unions and State Leagues.

Other Disclosures:
So now you know who I am, and what I will talk about. I will go ahead and apologize for my poor grammar and inevitable typos. I welcome all feedback and look forward to getting your opinions on my opinion. Remember even though I will discuss mostly my Research Sabbatical and other subjects as related to the Credit Union movement, the opinions expressed in it are mine and don’t always reflect the opinions of the Filene Research Institute or Tinker Federal Credit Union.