Credit Union Persuasive Speech
If you?re sitting here at our AGM this afternoon, it means that you as an owner want to be an informed and are interested in the welfare of your credit union. It also means that for some of you with the willingness to ask the pertinent - Why, What, How questions ? Why is the AGM so late? What is the status of our new head office and when will it finish? How is it that we?re only getting ah 4% dividend? My answer to you will be simple: I mean to tell you how our credit union is doing and highlight some suggestions to build on sixty-three (63) years of progress and continue moving our credit union forward.
Since the registration of the Credit Union by our founding fathers in 1953, our Credit Union has developed a fabulous and irresistible …show more content…
mix of authentic history, relatively stable finances, cultural-heritage and traditions that adds up to a highly-prized feel-good factor
Membership in our credit union used to be a source of pride, because our bond with the Massy group of companies meant that we had a common cause, shared values, and there were certain ideals that we stood for. It was an organization that changed lives and there was a camaraderie that was engendered through participation in functions organized by our Events committee.
A part of the ethos of this organisation is the democratic control owners enjoy. Owners are free to participate in decisions affecting the credit union, without regard to their standing in the workplace. In this regard, the Board intends to make the voting process more efficient and later today we will introduce electronic vote counting. Members are encouraged to exercise their franchise and remember that the decisions we make are an opportunity for us to make a difference in our credit union?s future
?
Throughout our most recent history, our relatively stable finances have always allowed us to pay a dividend. Last year the surplus was at the lower end of expectations owing to a 7% decline in overall revenue. Loans interest income declined by 4% compared to the previous year and our market-sensitive investment income suffered from weak investor sentiment and the prevailing economic conditions and declined by 28%. However, we continued to make progress in several key areas inclusive of membership, shares, assets and loans. After statutory deductions, the Board will be seeking your approval to pay out 100% of our surplus as dividends this year.
Emblematic of our traditions is the timing of our AGM. Having an AGM in May is unprecedented in the history of our credit union, and as extraordinary as the event that would have augured this, the inconvenient truth is that the root cause of the delay was the resolution of a financial irregularity spanning over eighteen (18) months.
The enemy was within, while some members have sought to steal the future; most of us still retain our values, good behaviours and attitudes - on the whole we are defined by these things, hence our endeavours aim to own the future.
As we go forward, the Board of Directors will endeavour to continue the dialogue and further details will be provided to you during this afternoon?s AGM.
I now want to draw your attention to some other challenges that confront us.
Due to the uncertainty surrounding the world's economic outlook, a slowdown in China and the continued fall of oil prices; Trinidad and Tobago?s economy is confronting a major shock with severely depressed energy prices.
To put some further context in our current economic environment; alternative means of financing are available to owners as they have wide choices and very attractive offers from other financial institutions. Within the Credit Union sector, many Players have similar strategies and there is not much differentiation between players and their products, hence, there is much price competition.
?
Now all this coupled with the financial impropriety that I described earlier would make it seem that the World is shifting under our feet in a most alarming way and we?ve finally hit rock bottom. On the contrary, rock bottom will become the solid foundation on which we rebuild our credit union.
Transformation is the key:
Transformation is the key to engaging our younger generations and making our Credit Union more relevant to young people;
Transformation is the key to embracing and leveraging the digital revolution; and
Transformation is the key to owning the future.
As a result, the theme for this mission critical year 2016 is ?Renewal,? and I now want to focus on three (3) initiatives that are in progress to secure that future.
In driving the performance of the organisation the responsibility starts with the Board. We took bold, urgent action in 2016 to reset the business and position the credit union to deliver sustained profitable growth.
Firstly, the rebranding initiative is a deliberate change in strategy. It?s for this reason, our theme this year is ?Renewal;? the thinking is that it provides our organisation with the opportunity of a clean slate, or in Latin "Tabula rasa.?
It's about accepting that challenge and making the commitment to become your primary financial institution of choice.
Secondly, I believe that it is extremely important for the Credit Union to establish appropriate infrastructure to meet current and future needs. It speaks to our image, accommodation for staff, the provision of consultancy services and facilitating complex transactions for owners, parking and the add-on value as an investment for future generations.
If we don?t undertake and execute on these capital projects we are more than likely to end up on the wrong side of history.
Along these lines, our intention is that the Brand ?reveal? should coincide with the opening of our new head office.
?
Thirdly, in order to heighten the level of capability of the credit union as a financial institution, we have to have a hard-nosed focus on execution and this can take the form of a stroke of the pen initiative or attitude changes. For this reason, nothing short of a completely fresh look at strategic planning was required and ultimately we decided to adopt the ?Four Disciplines of Execution? (4DX) model.
Using this management tool we embarked on a path of enlightenment and self-discovery; we had to identify exactly what is our most Wildly Important Goal or WIG that we wish to achieve and then plan to collectively focus on achieving it. At this time our most Wildly Important Goal (WIG) is a financial target.
In the ensuing years, in pursuance of our WIG we must invest in the five (5) pillars that we?ve identified are absolutely critical to our credit union?s future.
As noted by Chandler, ?Structure follows Strategy,? but it?s easier to focus on chasing opportunities rather than building out the internal resources needed to execute those opportunities. Hence, in pursuance of our WIG it is incumbent on us to transform the credit union?s organizational structure so that it better serves you the owners. New roles such as education, marketing, and human resource have been identified among others.
Incidentally, the proposed position of Education Officer will revolutionize the way we support that activity. It has pertinence and a relevance to today and will be the Credit Union?s most ambitious education initiative in years.
But what is equally groundbreaking is that this new dedicated resource will also be responsible for keeping alive our fabulous and irresistible mix of culture and traditions by connecting owners among themselves and with the institution.
?
We?ve won the category ?Best Human Resource? for Large Credit Unions in the League?s awards for the last X years. Those awards are by no means the pinnacle of our achievements; it's the beginning of a future where the Board and management will continue to keep our planning at all levels focused on a strategic outlook on recruitment and making the development of top talent a priority.
The reforms also aim to determine performance measures, design and implement a reward and recognition program and impose greater accountability on managers.
Ever so often someone comes up with an idea for the Credit Union; some ideas put forward may be fresh and new; some might be a bit ahead of their time, while others might be right on time. Accordingly, I want to ?place my hat in the ring? and be an advocate for two (2) ideas that have resonated with me for some time.
Firstly, we need to be addressed as owners; there should be no more reference in our literature to us as members. This engenders a sense of ownership ? sets in motion an ownership mindset, where we think and act like an owner ? and brings about a sense of responsibility. Hopefully this will also add a different perspective to our decision making.
Following on this, our mindset as owners has to change regarding our individual choices as key performance indicators.
Whereas a dividend possesses a traditional appeal as a measure of success, Credit Union co-operatives have measured success by human progress. For while the owners of this great institution have different backgrounds, different stories, different beliefs, what concerns you most in your life and the aspirations you hold dear is the same for all of us - an opportunity for a better life that we eventually pass on to our children.
Our Credit Union as part of its mandate should give the highest priority to?improving life chances from the cradle to the grave; therefore, my second initiative and I consider this to be the centerpiece of what is essential to the dual social and economic character of credit unions in serving owner?s needs, is that we consider a new goal, a new measure - a quality-of-life index.
We have to determine the elements for the index i.e. education, housing, car, health insurance, and how we implement and measure it. But, the only way to move to owner quality-of-life index, and finally address the future that we want, is to lay a new foundation for our Credit Union?s long-term economic
growth.
Ultimately, it should not be enough to say that the credit union co-operative model is better than other types of banking and financing models, we must demonstrate this.
Announce mortgage product
The most important investment many families make is their home, our credit union does offer a bridging finance facility and mortgage financing of up to 1.5 million dollars at a rate of 6%.
Announce health plan
An important investment should be in our health, in that regard your credit union will be introducing a health plan that is offered by X. This is a chance to enroll in an affordable health care plan with tangible benefits
Distribute the KYC sheet on AGM day
In further response to the diversifying tastes and preferences of our customers
I would like to have better insight to, better information about, better access to
?
Like it or not, history is upon you. Let us make this a year of action, there are challenges and opportunities ahead for this 21st century credit union, and we?re now gearing up for more transformative changes in this mission critical year than you?ve seen in the past sixty-three (63) years.
There should be no illusions about the work ahead, we must display rejuvenated vigour and eagerness to achieve our stated deliverables and none of those deliverables can be properly instituted without embracing good governance and promoting a culture of compliance within our Credit Union.
We must acknowledge that the performance of the loan portfolio was lacklustre over the last X years and a comparative analysis of the last ten (10) years show that dividends are also at historic lows.
It is my opinion that we need to have a credit union with a clear and sustainable revenue stream predicated on an internal growth strategy for our loan portfolio, that can ride out external shocks i.e. buoyancy of the investment market.
As we go forward, the Board of Directors will endeavour to continue our dialogue with you about the need to transform the Credit Union, through the rebranding exercise, building appropriate infrastructure, execution through our use of a strategic management model and organisational restructuring.
Something to also ponder is the idea to commit to a new goal, a quality-of-life gauge. This initiative bolstered by an ownership mindset and a push to hire the internal resources that are needed to execute on new opportunities would ensure that we will have a better tomorrow than we have today.
?
I wish to thank our General Manager and her staff. For Mrs. Thomas this will be her last AGM after X unstinting years of service.
I also wish to thank our volunteers, i.e. my fellow Board members, other elected Officers and Liaison officers for their guidance, support and advice during the term. We must seek to encourage volunteerism; you are in the service of something higher, and I think that's why most of us are so interested in doing this.
I could not cover all the issues facing the Credit Union in this speech. But I do know one thing for sure: we have to adapt to be ready for future challenges.
When you try to do big things and make big changes, in forums such as these, it may sometimes stir passions and controversy and despite the need to work through those differences, I know there isn't a person here who would trade places and be with any Credit Union other than Neal & Massy (North), because here is ?where you?re someone special.?
Since the registration of the Credit Union by our founding fathers in 1953, our Credit Union has developed a fabulous and irresistible …show more content…
mix of authentic history, relatively stable finances, cultural-heritage and traditions that adds up to a highly-prized feel-good factor
Membership in our credit union used to be a source of pride, because our bond with the Massy group of companies meant that we had a common cause, shared values, and there were certain ideals that we stood for. It was an organization that changed lives and there was a camaraderie that was engendered through participation in functions organized by our Events committee.
A part of the ethos of this organisation is the democratic control owners enjoy. Owners are free to participate in decisions affecting the credit union, without regard to their standing in the workplace. In this regard, the Board intends to make the voting process more efficient and later today we will introduce electronic vote counting. Members are encouraged to exercise their franchise and remember that the decisions we make are an opportunity for us to make a difference in our credit union?s future
?
Throughout our most recent history, our relatively stable finances have always allowed us to pay a dividend. Last year the surplus was at the lower end of expectations owing to a 7% decline in overall revenue. Loans interest income declined by 4% compared to the previous year and our market-sensitive investment income suffered from weak investor sentiment and the prevailing economic conditions and declined by 28%. However, we continued to make progress in several key areas inclusive of membership, shares, assets and loans. After statutory deductions, the Board will be seeking your approval to pay out 100% of our surplus as dividends this year.
Emblematic of our traditions is the timing of our AGM. Having an AGM in May is unprecedented in the history of our credit union, and as extraordinary as the event that would have augured this, the inconvenient truth is that the root cause of the delay was the resolution of a financial irregularity spanning over eighteen (18) months.
The enemy was within, while some members have sought to steal the future; most of us still retain our values, good behaviours and attitudes - on the whole we are defined by these things, hence our endeavours aim to own the future.
As we go forward, the Board of Directors will endeavour to continue the dialogue and further details will be provided to you during this afternoon?s AGM.
I now want to draw your attention to some other challenges that confront us.
Due to the uncertainty surrounding the world's economic outlook, a slowdown in China and the continued fall of oil prices; Trinidad and Tobago?s economy is confronting a major shock with severely depressed energy prices.
To put some further context in our current economic environment; alternative means of financing are available to owners as they have wide choices and very attractive offers from other financial institutions. Within the Credit Union sector, many Players have similar strategies and there is not much differentiation between players and their products, hence, there is much price competition.
?
Now all this coupled with the financial impropriety that I described earlier would make it seem that the World is shifting under our feet in a most alarming way and we?ve finally hit rock bottom. On the contrary, rock bottom will become the solid foundation on which we rebuild our credit union.
Transformation is the key:
Transformation is the key to engaging our younger generations and making our Credit Union more relevant to young people;
Transformation is the key to embracing and leveraging the digital revolution; and
Transformation is the key to owning the future.
As a result, the theme for this mission critical year 2016 is ?Renewal,? and I now want to focus on three (3) initiatives that are in progress to secure that future.
In driving the performance of the organisation the responsibility starts with the Board. We took bold, urgent action in 2016 to reset the business and position the credit union to deliver sustained profitable growth.
Firstly, the rebranding initiative is a deliberate change in strategy. It?s for this reason, our theme this year is ?Renewal;? the thinking is that it provides our organisation with the opportunity of a clean slate, or in Latin "Tabula rasa.?
It's about accepting that challenge and making the commitment to become your primary financial institution of choice.
Secondly, I believe that it is extremely important for the Credit Union to establish appropriate infrastructure to meet current and future needs. It speaks to our image, accommodation for staff, the provision of consultancy services and facilitating complex transactions for owners, parking and the add-on value as an investment for future generations.
If we don?t undertake and execute on these capital projects we are more than likely to end up on the wrong side of history.
Along these lines, our intention is that the Brand ?reveal? should coincide with the opening of our new head office.
?
Thirdly, in order to heighten the level of capability of the credit union as a financial institution, we have to have a hard-nosed focus on execution and this can take the form of a stroke of the pen initiative or attitude changes. For this reason, nothing short of a completely fresh look at strategic planning was required and ultimately we decided to adopt the ?Four Disciplines of Execution? (4DX) model.
Using this management tool we embarked on a path of enlightenment and self-discovery; we had to identify exactly what is our most Wildly Important Goal or WIG that we wish to achieve and then plan to collectively focus on achieving it. At this time our most Wildly Important Goal (WIG) is a financial target.
In the ensuing years, in pursuance of our WIG we must invest in the five (5) pillars that we?ve identified are absolutely critical to our credit union?s future.
As noted by Chandler, ?Structure follows Strategy,? but it?s easier to focus on chasing opportunities rather than building out the internal resources needed to execute those opportunities. Hence, in pursuance of our WIG it is incumbent on us to transform the credit union?s organizational structure so that it better serves you the owners. New roles such as education, marketing, and human resource have been identified among others.
Incidentally, the proposed position of Education Officer will revolutionize the way we support that activity. It has pertinence and a relevance to today and will be the Credit Union?s most ambitious education initiative in years.
But what is equally groundbreaking is that this new dedicated resource will also be responsible for keeping alive our fabulous and irresistible mix of culture and traditions by connecting owners among themselves and with the institution.
?
We?ve won the category ?Best Human Resource? for Large Credit Unions in the League?s awards for the last X years. Those awards are by no means the pinnacle of our achievements; it's the beginning of a future where the Board and management will continue to keep our planning at all levels focused on a strategic outlook on recruitment and making the development of top talent a priority.
The reforms also aim to determine performance measures, design and implement a reward and recognition program and impose greater accountability on managers.
Ever so often someone comes up with an idea for the Credit Union; some ideas put forward may be fresh and new; some might be a bit ahead of their time, while others might be right on time. Accordingly, I want to ?place my hat in the ring? and be an advocate for two (2) ideas that have resonated with me for some time.
Firstly, we need to be addressed as owners; there should be no more reference in our literature to us as members. This engenders a sense of ownership ? sets in motion an ownership mindset, where we think and act like an owner ? and brings about a sense of responsibility. Hopefully this will also add a different perspective to our decision making.
Following on this, our mindset as owners has to change regarding our individual choices as key performance indicators.
Whereas a dividend possesses a traditional appeal as a measure of success, Credit Union co-operatives have measured success by human progress. For while the owners of this great institution have different backgrounds, different stories, different beliefs, what concerns you most in your life and the aspirations you hold dear is the same for all of us - an opportunity for a better life that we eventually pass on to our children.
Our Credit Union as part of its mandate should give the highest priority to?improving life chances from the cradle to the grave; therefore, my second initiative and I consider this to be the centerpiece of what is essential to the dual social and economic character of credit unions in serving owner?s needs, is that we consider a new goal, a new measure - a quality-of-life index.
We have to determine the elements for the index i.e. education, housing, car, health insurance, and how we implement and measure it. But, the only way to move to owner quality-of-life index, and finally address the future that we want, is to lay a new foundation for our Credit Union?s long-term economic
growth.
Ultimately, it should not be enough to say that the credit union co-operative model is better than other types of banking and financing models, we must demonstrate this.
Announce mortgage product
The most important investment many families make is their home, our credit union does offer a bridging finance facility and mortgage financing of up to 1.5 million dollars at a rate of 6%.
Announce health plan
An important investment should be in our health, in that regard your credit union will be introducing a health plan that is offered by X. This is a chance to enroll in an affordable health care plan with tangible benefits
Distribute the KYC sheet on AGM day
In further response to the diversifying tastes and preferences of our customers
I would like to have better insight to, better information about, better access to
?
Like it or not, history is upon you. Let us make this a year of action, there are challenges and opportunities ahead for this 21st century credit union, and we?re now gearing up for more transformative changes in this mission critical year than you?ve seen in the past sixty-three (63) years.
There should be no illusions about the work ahead, we must display rejuvenated vigour and eagerness to achieve our stated deliverables and none of those deliverables can be properly instituted without embracing good governance and promoting a culture of compliance within our Credit Union.
We must acknowledge that the performance of the loan portfolio was lacklustre over the last X years and a comparative analysis of the last ten (10) years show that dividends are also at historic lows.
It is my opinion that we need to have a credit union with a clear and sustainable revenue stream predicated on an internal growth strategy for our loan portfolio, that can ride out external shocks i.e. buoyancy of the investment market.
As we go forward, the Board of Directors will endeavour to continue our dialogue with you about the need to transform the Credit Union, through the rebranding exercise, building appropriate infrastructure, execution through our use of a strategic management model and organisational restructuring.
Something to also ponder is the idea to commit to a new goal, a quality-of-life gauge. This initiative bolstered by an ownership mindset and a push to hire the internal resources that are needed to execute on new opportunities would ensure that we will have a better tomorrow than we have today.
?
I wish to thank our General Manager and her staff. For Mrs. Thomas this will be her last AGM after X unstinting years of service.
I also wish to thank our volunteers, i.e. my fellow Board members, other elected Officers and Liaison officers for their guidance, support and advice during the term. We must seek to encourage volunteerism; you are in the service of something higher, and I think that's why most of us are so interested in doing this.
I could not cover all the issues facing the Credit Union in this speech. But I do know one thing for sure: we have to adapt to be ready for future challenges.
When you try to do big things and make big changes, in forums such as these, it may sometimes stir passions and controversy and despite the need to work through those differences, I know there isn't a person here who would trade places and be with any Credit Union other than Neal & Massy (North), because here is ?where you?re someone special.?