STARRING SAM TRENCH AND SLICK SHOES IN CUMIS RATES

Transcription

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Canadian Conference of Credit Union Executives
A special report
HEADOHICF.
P.O. Box 2038, 144 1 Creekside Drive
Vancouver, B.C. V6B 3R9
TELEPHONE NUMBERS
734-2511
B.C. Central Credit Union
734-25 11
Central Counselling Lid.
734-2511
Central Financial Corp. Ltd.
736-2911
Data Processing Division
734-2511
Printing & Supplies
734-2511
Greentree Developments Lid.
BOARD OF DIRECTORS
P. J. Heyming, chairman, Kclowna
J. Wcrcmehuk, vice-chairman, Surrey
R . E. Davies, second vice-chairman,
North Vancouver
A. R. G len, Nanaimo
E.T. Cross, Coquitlam
J. W. Darling, Burnaby
T . Sankey, Victoria
Gordon Shepherd, Port Alberni
Lloyd Biech , Pri nce George
S. Rasc hdorf, Nelson
S. Sutherland, Vanco uver
G. Viereck, Prince Rupert
E. A. Kaulius, Surrey
J. Aussant, New Westminster
H. Down, Sid ney
ENTERPRISE
Published by B.C. Central Credit Union, in
the intertst or its membcr-organilations.
Distribution is controlled and circulation is limited
on the following basis:
• one copy to the office or each memberorganizarion of B.C. Ccnrral Credi! Union
• one to each credil union director and credit
committee member;
Opinions expressed in rhis publication are not
necessarily those of the publisher or cdiror. The
contents arc covered by copyrighl and all rights
arc reserved.
No material in this publicarion may be
reproduced in any form withoul permission.
For info rmation concerning 1hc publication
contact:
Communications Department, B.C . Central
Credir Union,
Editor: Pixie McGeac hie
Associate Editor : An ne Sharp
ISSN 0319-8626
SAM TRENCH ANDSLICK SHOES IN CUMIS RATES BEST
A CUMIS LIFE INSURANCE COMPANY AUDIOVISUALPRODUCTION
Cover Design: Bruno Madsen
STARRING
BROUGHT TO YOUBY @OOOCJD00 THE
CREDIT UNION MEMBERS' INSURANCE SOCIETIES
Reco~gi~2~edas
ENTERTA INMENT
Vol. 39 No. 6 November/ December 1979
T ime management saves time
You cannot add more hours to your day
but you can in crease your available time
Family housing - a co-operative effort
Credit unions and labour unions work together
to initiate housing developments
Special CCCUE report:
Old phi losophy no longer relevant_ _ _ _ _ _ __ __
8
Canada is consumi ng its future _ _ __ _ _ _ _ _ _ _ _ 9
Most important challe nges lie ahead
10
Disc ussion determ ines direc tor s' du ties
11
Success depend s on leadership
12
Chris Hegarty' s lead er profile
13
Demographics aid planning
13
Chang ing attitudes create impacts
14
CFDP looks to grassroots
15
Lapierre decries lousy PR
16
OWL steps up productivity
18
Roles should be spelled ou
19
Is large beautiful?
O
The trend is to representative democracy
1
Other features
Christmas message _ _ _ __ __ _ _ _ _ _ _ _ _ _ 5
Guest ed itorial
6
Cloversquare opens its doors
29
Colum ns
TheEconomis~----------------~23
Small Credit Un ion News
Drawing Board
Security
Co-op Comment
Peop le and Places
25
26
27
8
30
In this issue
At the end of October, 430 women and men from
across Canada, converged on the Bayshore Inn in
Vancouver B.C. , to spend four days seeking answers to
problems, sharing hopes and expectations and meeting
other people who believe in co-operative principles.
The event in which they came to participate was the
1979 Canadian Conference of Credit Union Executives,
planned and put together by the Canadian Co-operative
Credit Society with on-site assistance from B. C. Central
Credit Union personnel. The theme of the conference was
"A Sense of Change."
A roster of speakers, moderators and panelists
provided sessions of information, provoked serious
reflection and stirred up lively discussion. It was four
days of educational and social interaction when those
from the east got to know more about the west, those
from the west traded ideas with prairie representatives
and prairie delegates learned about co-operative activities
in the east. It was people sharing common concerns and
common goals.
The program for the conference was set on a high
plane. The speakers, moderators and panelists, without
exception, kept it there. It was an important conference
held at a time when the credit union movement in
'
Canada must examine carefully how much, when and
where it should respond to the challenge of "change".
The original intention of Enterprise was to allot a few
pages to the coverage of the CCCUE in this issue. Every
session of the conference, however, provided so much
food for thought that it was decided a smorgasbord
should be offered instead of a sandwich, so that all those
who were not fortunate enough to attend the conference
could digest its offerings.
It took a storm of writing to prepare conference copy
to meet the Enterprise deadline but publications staff (all
two of us) managed to surmount the task and still have
enough strength left over to wish all Enterprise readers a
Safe and Happy Holiday Season and a New Year full of
good things.
CChristttl.as
1979
i
J
I
I
I -,
I :i
'\ 1:
I'
Regional Executives
THE KOOTENAYS
•J. Harasin, Rossland
R. Leamy, Castlegar
C. Manson, Grand Forks
D. Zaremba, Kimberley
W. Belding, Cranbrook
H. Webber, Castlegar
0. Almaas, Kootenay Savings
S. Raschdorf, Nelson
lliEOKANAGAN
•G. Bowie, Kelowna &: District
J. Taylor, Vernon&: District
M. DeNeef, Thompson Valley
A. Olson, Salmon Arm
L. Campana, Summerland & District
F. Noel, Salmon Arm
F. Olynyk, Revelstoke &: District
P. Heyming, Kelowna &: District
H. Biddlecombe, Penticton &: District
lliE NORTHLINE
•J. Sequin, Nechako Valley
4
J. Quelle, Quesnel&: District
P. Fradette, Williams Lake
R. Bretherick, Terrace &: District
D. Griffeth, Lake View
L. Biech, Prince George &: District
G. Viereck, Kaien Consumers
A. Von Hollen, North Peace Savings
WESTMINSTER 6: FRASER VALLEY
•E. Wittal, Westminster
R. Lewis, 0.F.I.
B. Elliot, Maple Ridge
G. Loewen, Clearbrook
B. Voth, East Chilliwack
K. Sheaves, Delta
W. Carpenter, Surrey
W. Read, Dogwood
J. Weremchuk, Surrey
E. Cross, District of Coquitlam
VANCOUVER ISLAND
•V. Devries, Victoria Public Savings
C. Kinney, Chemainus
GREATER VANCOUVER
•D. E. Gallagher, Compensation Employees
B. Phillips, Richmond Savings
R. W. Slater, North Shore
G. T. McCulloch, United Services
J. Duffie, Gr. Vancouver Catholic
Charles H. Lee, Elco
R. E. Tyldsley, V.P.
H. Albrecht, Metro Services
P. Moore, Gr. Vancouver Catholic
J. W. Darling, Vanfed
D. G. Campbell, VanCity
K. Markwiski, Jubilee
As Christmas approaches with its traditional concept of goodwill to
men, it is pleasant to reflect that the co-operative move!"11e~t, in which
we all believe, was founded on that very same prmc1ple.
In a world in which demand and aggression seem to be requisites for
survival - both personal and in business - it is reassuring to become
aware of the growing undercurrent.of desire among indivi~u.als and
corporations, to work together to achieve common and benef1c1al goals.
We all need to take time to examine the fact that each one of us is
dependent on the goodwill of our family , our neighbours, our business
associates, our governments and the nations of the world . When th?t
goodwill is withdrawn a vacuum is created which eventuall~ dr?ws m
all manner of destructive forces that choke out human dignity.
\
R. Philip, Courtenay
L. Notter, Duncan
J. Grant, Cee Pee
J. Torry, Union Bay
N. Hulshof, Lake Cowichan
L. Muldrew, Westcoast
G. Shepherd, Albemi
A. R. Glen, Nanaimo District
J. Sankey, Westcoast
,,
!' !
The Christmas season which serves to remind us of our need to
exercise the spirit of goodwill should also remind us of the challenge to
keep this spirit bright throughout the months to come .
I
1,
I
t
The Board of Directors, Management and Staff of B.C. Central Credit
Union would like to extend our feelings of goodwill to you all and
wish you much success in 1980.
~
7--7·
Peter Heyming
Peter Podovinikoff
ENTERPRISE NOVEMBER/DECEMBER/79
ENTERPRISE NOVEMBER/ DECEMBER / 79
5
Guest editorial
Credit unions: personal
and collective financial strengths
At a time when Americans reveal a
disturbing distrust of nearly all their
institutions, from business to the news
media and Congress, co-operatives
offer us a chance to believe in
something - ourselves.
The average consumer today finds
himself or herself isolated from the
centers of power and decision.
Decisions about the food we eat, the
fuel we burn, the health care we
receive and the way we manage our
money are increasingly made by
people to whom consumers are just
numbers on a sales chart, not
individuals.
What better illustration of the
alienation of the American consumer
than last summer's gasoline shortage?
Lacking the power or the confidence to
take a constructive and united stand,
we occupied ourselves with assessing
who was most to blame for our
collective discomfort.
Co-operative action and co-operative
organizations put people back in the
driver's seat. Not that they could have
solved the gas shortage, but cooperatives do provide an antidote to
our economic paralysis, because they
join the interests of buyers and sellers
and give ordinary people confidence in
their abilities to improve their own
lives.
Based on the democratic principles
that people are both responsible for
their own lives and have an obligation
to their neighbors, co-operatives
reinforce the value of individuals
relying on themselves and each other ,
rather than on big business and
government to solve fundamental
economic problems.
Credit unions, like a ll co-operatives,
believe that informed consumers,
armed with the power to control the
institutions that serve their needs, can
be the most positive force in the
American economy .
Credit unions first came to the
United States in 1909 to offer people of
ordinary means a financial institution
6
ENTERPRISE NOVEMBER/OECEMBER/79
that would encourage thrif t and
provide inexpensive credit in a
friendly, convenient atmosphere. More
than 22,000 credit unions, with 40
million members and $70 billion in
assets, are still serving that purpose,
despite vast changes in the financial
marketplace over the past 70 years.
The coming decade will bring even
greater changes in the financial world.
Gradual government deregulation is
likely to strengthen the large and
wealthy financial institutions at the
expense of the small. And the
revolution in data communications will
mean that automatic computer tellers
will replace the real thing in more and
more places.
While consumers will certainly
benefit from the increased competition
and better service, individual contact
with financial institutions is bound to
suffer.
Credit unions won't be immune to
the trends of the '80s. They will be
growing and adding the new services
their members want. They will be
using computers to speed and simplify
service, too. But as technology
encourages the financial industry to
grow more impersonal and removed
from individual consumers, credit
union members, through participatory
democracy, will still control every
aspect of their credit unions, from
electing the directors to deciding what
services they want, at what price and
under what terms. And, of course,
they will share fully in the return on
earnings of these not-for-profit cooperatives.
Credit unions have always offered
their members a good deal when it
comes to saving and borrowing. They
have long been committed to the
principle that the members are the
owners and ought to be treated as
owners. And listened to as owners, as
well. That's why credit unions and
other co-operatives will become more
1
1979 Canadian Conference
of Credit Union Executives
important in coming years as people
seek to control their own economic
lives, and to remain individuals in an
impersonal world.
Even though credit unions are rooted
in the past, they are the financial
institutions of the future, a fu ture in
which it will be important for people
to believe in themselves and in their
abilities to manage the economic forces
affecting their lives, for their personal
well-being and for the well-being of the
nation.
(Editor's note: This editorial is
reprinted from Management Notes
with. permission of the author, Jim
Williams, president of the Credit
Union National Association. )
Letter to the editor
Dear Sir or Madam:
Valerie Whitfield, editor of the CUMIS publication, Dimensions. prepares to
photograph (/. to r.) Chris Hegarty, Bob Ingram, Elliott Horner and Joe Weremch uk.
Conference chairman: Bob Ingram, corpora te secretary, CCCS.
Session breaks were times for conversation or relaxation. Here, Joe Weremchuk,
1st vice-chairman of 8. C. Central's board of directors, (centre-smiling) gets into a
conversation.
Conference co-ordinator:
Ray Cadorette, manager
munications for CCCS.
I received a copy of your p ublica tion
Enterprise at the recent CCCS
Conference in Vancouver and as you
can see I wish to subscribe. It's a great
publication!
Just one correction could be made;
on page 11 under "Credit Union A TM
Programs" the Cu-Teller installation
that has 3000 PIN numbers is the firs t
installation and the one you refer to as
the second installation is also in fact
the first installation. Our transaction
volume has gone from 437 in January
'79 to 3418 in October '79. The other
Credit Union on our C u-Teller system
is experiencing under a 1000 entries per
month.
Should you have a ny further need of
comment on our program I would of
course be pleased to share it.
Yours very truly,
A . Niessen,
General Manager.
Auto Family Credit Union
(Niagara) Limited.
of com-
"A Sense of Change" ... "A Sense of Change" ... "A Sense of Change"
ENTERPRISE NOVEMBER / OECE MBE R/ 79
7
1
George May
earl Beigie
Old philosophy no longer relevant
(Editor's note: During the Canadian
Conference of Credit Union Executives,
George May, chief executive officer of
the Canadian Co-operative Credit
5 ·t
was
.
.
oc1e y,
interviewed
by
Enterprise.)
.
What do you perceive as the prime
role for CCCS at this time?
George May: CCCS' prime role is
clearly being mandated by the
shareholders and the role is that of coordinator of liquidity for the Canadian
.
.
ered 1t union movement. The
I
d
eve opment of th is liquidity function
has taken place in the past two years.
The secondary role of CCCS is that of
acting as a broader financial facility
for both the credit union and the cooperative movement. CCCS is only
beginning to address itself to this role
and will see greater activity in 1980.
cccs· role can be summarized into
h
t ree parts: .natural financial service,
bro.ad. er nationa l association, legislative
activity.
Being national leader of the Canadian
Co-operative movement would seem to
demand great strength of purpose on
your part. In what area do you feel
you should be stressing leadership?
George May: Leadership requirements
today for credit unions relate to the
seeking out, study and consideration of
new definitions to put together a new
course for credit unio ns. In the past
decade there has been tremendous
growth in every respect for credit
unions . Throughout all this growth the
movement has clearly been drifting
and no longer has a clear v ision of
what we are doi ng or wh y we are
doing it. T he old concept p revented
usurious practices of granting credit.
This is irrelevant today .
We have not been able to articula te
and p ut together a clear defini tion of
our role as a movement. Individ ual
credit uni ons, individual centrals, and
individual na tional organizations of the
credit union movement have set out
missions a nd purposes bu t we - as a
movement - are deficient. Leadership
needs to really direct its attention to
putting together a new vision. The
hard pa rt is coming with the
availability of more and more financial
8
ENTERPRISE NOVEMBER/ OECEMBER /79
technical 0 r f
h. · ·
situates us i:e~ :~~ so~ts1~t;ci~tlon that
flexible position to b~ing th h a good
b d
I f
h
e ow to a
new roa er ro e or t e movement as
a whole
·
It has been suggested by one of the
conference speakers that CCCS should
act as agent in funneling Canadian
credit unions' money into capital
investments. How do you view this
suggestion?
G
M
eorge ay: Considerable work has
d
b
1
area
Y een done on that suggestion.
We talked of this in 1975 _76 in B.C. It
.
is going to come and will be structured
.
m a way to allow us to optimize on
.
regiona1 economic development. The
first stage will be on a provincial basis
then regional (particularly western
'
Canada) and then national, allowing a
broad participation in our country's
development and complimenting
provincial initiatives.
I
h
see t e suggestion as only a part of
the role the credit union movement
could be playing in the socia l and
economic development of Canada.
. I also see tha t we are going to
implement this suggestion with others
that begin to position the credit union
movement as a movement that is able
to not only provide financ ial services
to individuals but also provide
financial services to our country for
ecomonic development. In the longer
term we will have to develop
mechanism s that are provided by the
whole movement and not by province
only.
I have the notion that a new mission
lies in the area of bringing forward cooperative en terprise as a significant
social and economic part of our
society.
Wh at are your feelings in regard to the
rising interest rates in Canada? Do you
thmk they wi/J achieve their p urpose?
~eorge May: I believe today's high
interest rates have more than ach ieved
their purpose. The psychology of
individuals, family units and the
private and public sectors has changed.
Conservor philosophies and
approaches are now the order of the
day.
Canada is consuming its future
I~terest rates are now severely
1amhag1~g
the economy and if there are
urt er increases then we are clearly
overreacting
·
·
I believe the results of further
increases will be very high
unemployment and a deeper reces 5 ·0
t~an anyone anticipated. We have ~ ~
billion current account deficit bu t w
have ot~~r alternatives to correctinge
that def1c1t. In dealing with inflation I
believe we need to take action on th '
It
.
ose
a ernattves now rather than to
increase interest rates. A primary
alternative relates to increasing the
h
s ort term export of natural gas and
h
ot. er resources and at the same time
widely propaga ting the need for
7
restraint on prices and wages.
Current high levels of interest rates
have created the right psychology to
have self-restraint implemented .
Do you think the philosophy on which
the co-operative movement was based
can survive?
'
George May: No , I don't believe the
credit union movement - as a
movement - can survive with the old
philosophy. The old philosophy of
offering low cost credit through a pool
of mutually held savings is gone - it's
irrelevant. I believe the philosophy
that the individual credit union was
the end is also gone and a new
philosophy is going to have to
incorporate a much broader role for
the credit union movement which itself
incorporates the three levels of the
movement we have in Canada today.
For the future, I see a fourth level an international level - with
opportunities that will ha ve to be a
part of the ph ilisophical approach . Our
philosophy, in my view, is going to
have to incorpora te a broader vision
that incl udes in our Canadian
movement a systems approach so that
we can truly meet the financia l needs
of the governmen t sector and to some
extent, the community sector and to a
new extent, the whole co-operative
sector.
Our ph ilosophy might well be
framed with a movement thrust as
opposed to a thrust from any
particular level or organization within
the credit union movement.
Monday's kick-off speaker at the
Canadian Conference of Credit Union
Executives was econom ist Carl Beigie,
president and chief executive officer of
the C.D. Howe Research Institute in
Montreal and associate professor in the
Faculty of Management at McGill
University. He delivered a clear,
concise and concentrated view of the
current and futu re financial scene in
Canada.
Referring to the uneasy fee ling that
prevails in financial institutions today,
Carl Beigie sa id, 'There is always a
great deal of uncertainty but in time of
stability we don't pay much attention
to that uncertainty."
"The current environment for
financial institutions in Canada is
chaotic," he continued, "and it is only
a matter of time before rates at current
- and possibly even higher - levels will
begin to squeeze the demand for credit
quite markedly."
Referring to the centra l bank policy,
Beigie went on to say that he had
serious doubts about the notion that
centrals banks can determine the rate
of growth of credit solely through their
own actions. "I think that for the
economy as a whole, especially one in
which foreign sources of credit can be
accessed fairly readily, credit demand
generates its own supply."
He expressed a conviction that in the
United States at least, the point is fast
reached where borrowers will modify
their expectations of future inflation
and will look on borrowing in a totally
different light and they will see a credit
crunch in the only sense this term has
any meaning - an unavailability of
credit at a price they are prepared to
pay.
"In that sense," he emphasized, "a
credit squeeze will contribute to a
contraction in purchases of goods and
services bought with credit, thereby
contributing to a demand recession
that I regard as inevitable and
probably more severe that most
forecasters are projecting for 1980."
Beigie pointed out that recessions are
bitter medicine and added that he had
no sure-fire solution for avoiding a
recession at this time. Recovery will
come, he said, but precautions must be
taken to ensure that it does.
Looking a t the link between Federal
Reserve and Bank of Canada policy
Beigie said, "It is essentially an
economic question but it has been
made a political issue by opportunism
on the part of the opposition parties in
Ottawa. Canada will run a current
account deficit of at least $7 billion in
1979 in its international accounts. This
means we are importing about $7
billion more than we are exporting in
our trade in goods and services."
He listed four ways to cover the
deficit:
(1) Run down international reserve
assets. We do not have enough of
these assets to pay our bills for even
one full year.
(2) Cut back our bills by imposing
controls on imports and giving
subsidies to exports. This will provoke
retaliation and lead to an environment
like that of the 1930s.
(3) Allow our do ll ar to decline even
further in international currency
markets. This would tend to push
inflation rates even higher, but we may
have to accept this consequence over
time to get our balance of payments in
better shape.
(4) Pay interest rates that are
attractive enough to keep foreigners
willing to lend to us and Canadians
willing to keep as much of their money
here as possible. This means keeping
our interest rates attractive to lenders
relative to what they can obtain in the
U.S.
Referring to the conference theme "A
Sense of Change", Carl Beigie stated,
"There is not the slightest doubt in my
mind that the industrialized world is
going through a series of changes that ,
when taken together, represen t the
most profound challenge in modern
economic history .
"There are many dimensions to our
current problems, but I think they can
be summarized best by the observation
that Canada is consuming its future
rather than investing in it. We are
paying for our short-sightedness now
in terms of inflation; our children and
grandchildren will have to pay for it
later in terms of income and
consumption sacrifices."
Expressing the view that investment
spending, not consumption spending is
the most effective way to move
Canada out of recession along a path
that will strengthen our ability to grow
in a more balanced, non-inflationary
manner, Beigie listed five things in
which we must begin to invest more of
our current output:
(1) long-term energy self-sufficiency;
(2) greater attention to the longterm sustainability of our basic
environmental conditions;
(3) upgrading skills of and the
equipment available to the Canadian
labour force;
(4) improving our competitiveness in
international markets in the face of
import pressures from lower-wage
developing countries;
(5) upgrading what economists call
the infrastructure of a nation transportation and communication
facilities, municipal sewage treatment,
for examples.
"Add these and other factors
together," he cont inued, "and l see at
least a decade of intense demand for
credit to restore our economic health.
Moreover, the struggle for credit will
be widespread around the world
making it that much harder to obtain
foreign capital, even if we want it.
'The message I would leave you
with today, " concluded Carl Beigie, "is
that we are heading into an era when
there will be a premium on toughness
and leanness. Those characteristics can
be imposed on us by circumstances we
allow to remain beyond our control,
or they can be the result of an exercise
in collective self- discipline that
produces a superior base for our future
well-being. In a democratic society, the
choice is ours. If it ever comes to a
vote, my ballot will be cast in favo ur
of investing in our future rather than
consuming it. My children deserve that
much from me and so do yours."
(Carl Beigie is president and chief
executive officer of C. D. Howe
Research Institute.)
ENTERPRISE NOVEMBER/OECEMBER/79
9
b
Case study
Most important challenges lie ahead
Moderator: John Nicholson vicef
'
"d
pres1 ent ~ Credit Union Central of
Nova Scotia. Panelists: Peter
.
. "k ff
Po d ovm1
o , chief executive officer,
B.C. Central; Harley Biddlecombe
general manager, Penticton and '
. · C d"
D istnct
re it Union; Vincent Devries,
general manager, Victoria Public
Savings Credit Union · Geoff Hook
. f
.
'
'
ch 1e executive officer and general
manager, Vancouver City Savings
Credit Union.
might be
"bl
h
·
poss1 e ot erw1se Credit
unions are not the e d . h.
but
nd m t emselves,
a means to an en and a mea t
achieving our broader oals
ns o
..0
.
g
·
lie ahuer dmosft impNortanthchallenges still
a 0 us. ow t at we have
achieved the current I v I f
.
it is importa t th t e ~f 0 .matunty
br d
n
a wee echvely
oa en our impact on our
co
.t.
d h
.
mmun1 1es an t e environment ·
which w f
t"
Th
m
h " h e u~~ ion:
~successes
~ 1c w~· ac 1eve m .this respect over
~/o~~~ff:~~i~:~;:sv:'.ill be the true test
·
Introduction
"It is impossible to capture the
dynamics of the development of the
Bewildering Times
credit idea in British Columbia in a
Vince Devries expressed the thought
short series of 10 or 15 minute
t~at
we a7e goin~ through bewildering
presentations, " said Peter
times durmg which the original
Podovinikoff. "However, it is our hope
purpose of the credit unions _ loyalty
that at the end of this afternoon
to the member - has tended to change,
session, delegates will have a much
because of the hiring of professionals
greater insight into what it is that we
to run credit unions, to loyalty to the
are all about. "
organization.
After giving a brief overview of the
"As credit unions grew in size and
B.C. credit union history to date, he
a~sets, " he said, "we moved th~
continued, "Currently, the credit union
directors from the kitchen to the
system in the province is moving
boardroom but perhaps we are still
through a period of consolidation and
selling an old product."
redefinition. The marketplace in which
He advised that credit unions must
many of our credit unions function is
look ahead an d also look to CCCS and
one of the most competitive in
the .provincial centrals for leadership in
Canada. The credit union system is
setting up research centres and
recognized by the vast majority of the
programs and a lso education programs
population; however, our research
to teach people about money
indicates that our range of specific
management.
services is not well understood.
"People want a direction and a sense
"Credit unions within this province
of purpose," emphasized Devries
are living in a time when there is need
adding, "Let's look at the produc~s we
to give much more recognition to the
have and at the members we have and
competitive marketplace because it is
find a sense of purpose."
not possible to rely on the loyalty of
the member which, in many instances
Aggressive Environment
is non-existant. Members have becom~
"Never before have credit unions
increasingly rate sensitive in recent
been faced with such an aggressive
years.
e~vironment, " commented Harley
"We (in B.C.) continue to believe
B1ddlecombe. "In provision of services
that the co-operative idea must spread
credit unions are no longer leaders. We
to as many facets of our life as
must take a long hard look at
~ossible. Credit unions are only an
ourselves to see what we are and
instrument which enables people, who
where we want to be. "
willingly come together, to do things
A~ gen.era! manager of a community
for themselves more effectively than
credit union, Biddlecombe felt strongly
about credit union involvement in the
community.
10
"W
·11 h
.
e a~e sti t e only financial
mtermed1ary owned by the commu .
.
.
h. h
nity
m w ic we 1ive: Credit unions should
move toward bemg an economic h b
of the community."
u
H 1
d
~ a s? a vocated careful plannin
to d1vers1fy portfolios, adding "We 1
change and with care and planning
.
.
we
w1 11 cope with tha t change. "
Wh
k d
en as e from the floor about h"
idea on community involvement
is
Biddlecombe replied, "We can b '
syno.nym?us with the communit~. If
you .identify yourselves in every
possible way in which you serve
people they will come to regard you as
part of the community. "
He suggested means of involvement·
sponsorship of educational forums· .
taking more of a consumer advoc;te's
role; making members aware of legal
rights.
!·n
Regional Credit Unions
Geoff Hook expressed optimism for
the future of credit unions in B.C. and
felt that both timing and planning had
contributed to the success of these
credit unions.
Predicting that we will be seeing
more branching in trust companies and
banks he emphasized the need for
credit unions to look to good business
procedures.
'.'Business goes to the lowest possible
pnce for the best possible service," he
pointed out. ' There should be a fair
charge for a fair service with no
gimmicks such as charging 'here' for
service 'over there'. People are too
smart to be fooled by this."
Adding a word of caution, Hook
remarked, "We don't have to meet the
leader with every service. We must
build on our strengths. We are not
ready or equipped to deal in some
fields yet. Our role is to manage our
members' money on their behalf. "
He concluded, "We are in a period
of rapid change. It is disturbing and
we don' t like it. We should encourage
regional credit unions because if we
don't many credit unions will fall by
the wayside."
continued on page 17
Discussion determines directors' duties
The bonus session on Directors'
Responsibilities at the CCCUE was
attended by about 150 people, most of
whom were directors. Chris Hansen,
moderator for the session, introduced
the key panelist Joe Dierker, a lawyer
who has been involved with credit
union and co- operative organizations
during his entire practice and has
recently completed a report on
directors' responsibilities for Federated
Co-operatives Limited.
Dierker explained that the commonIaw duty of care of good management
can best be explained as follows: the
director must use the care, skill and
diligence of a reasonably prudent
person in comparable circumstances.
In terms of fiduciary duties, two
concepts should be considered: the
director acts as a trustee; and he/ she
must act with common sense. In
layman's terms, this means keep your
fingers out of the till and promote the
activ ities of your credit union.
In the case of negligence by
directors, the law describes certain
standards which it does not require of
directors:
1) They are not required to take all
possible care but only to use
reasonable care. In the absence of any
breach of fiduciary duty, a court will
not substitute its judgement - in the
light of hindsight - for a particular
business judgement of directors that
was reasonable under the
circumstances as they existed at that
time;
2) In the absence of grounds for
suspicion, they may delegate board
discretion to committees of directors or
corporate officers to manage the more
detailed aspects of the corporation's
business. They have a right to rely on
officers, auditors and other experts;
3) They are not required to devote
the whole or even any specific amount
of their time to the affairs of the
corporation;
4) The directors are not required to
meet any particular qualification or
have any special skills, although they
must exercise any special skills which
they have.
The director is held responsible if
J
Discussing panel presentation: Sheila Edmonstone (centre), a director of
Westminster Credit Union; Vince Devries, general manager of Victoria Public
Savings Credit Union (left centre); August Schiller, a director of Westminster
Credit Union.
he/she effectively abdicates this
board of Westminster Credit Union,
function by failing to turn attention to
pointed out that if credit unions don't
the business of the organization, or by
seem to have enough people
delegating powers to irresponsible
volunteering for director positions,
persons or to persons of whom no
they should try harder to attract
surveillance is maintained.
women to the board. {Out of 105
Regarding insurance policies to
people at the session, only three were
protect directors, Dierker pointed out
women.) She said many women don't
that credit unions may just as well
feel qualified for the job right away
save their money because if directors
and explained that Westminster Credit
act properly and with reasonable care,
Union allowed her to do volunteer
keep their hands out of the till , and
work for the credit union before she
promote their credit union, they won't
ran for a director position.
need insurance.
This idea of potential directors doing
John Witt, the third panelist,
work of an apprenticeship nature with
detailed the concerns of directors,
the credit union was well received by
including where their organization is
the group . It was felt that most
headed, how it is being monitored,
organizations don't really work at
member/ public relations, expectations
attracting directors, phasing people
of their general manager, and review
into the job and training them and
of the manager's performance.
improving their skills.
The group also discussed the idea of
One participant pointed out that too
full-time, paid, professional directors
many directors have a rear-view
versus the volunteer system. It was felt
mirror approach to the future. They
that, at the credit union level, paying
look at statements and reports from
directors isn't the answer. Rather,
the previous month but they never
credit unions should strive to make the
look ahead to where they want their
job an interesting, attractive venture
organization to go.
and guard against discouraging
The question, what is the key
potential directors by playing up the
responsibility of a director, brought
responsibilities of the job.
forth a number of answers: to oversee
the CEO; to make policy; long-range
Sheila Edmonstone, member of the
11
Chris Hegarty
Success depends on leadership
H~w can credit union executives
continue to promote staff development
~hen ~oday's increasingly competitive
fin~~c1al market demands greater
eff1c1ency and, in some cases, staff
cutbacks? Seeking to answer this
question, Chris Hegarty, management
consultant par excellence, treated the
CCCUE participants to an hour and
half of well-delivered comments .
Emphasizing that the successful (or
non-successful) results of mobilizing
people resources depends on the
quality of leadership, Chris Hegarty
noted that there are four
'
denominations of leadership: the drive
leader, the draw leader, the default
leader and the develop leader.
The drive leader excels in distrust
seeks control rather than confluence'
forgives no one (including himself), '
focuses on what people do wrong,
leads by way of punishment, turns
others off, and value judges instead of
evaluating.
Even more detrimental to an
organization's progress is the default
leader who engenders even less loyalty
than the drive leader. This type of
leade~ does not really lead but instead
lets his staff live in a vacuum. He/she
sees people as things, value judges
rather than evaluates, pursues then
abandons projects, inappropriately
delegates and doesn't know that people
prefer being punished to being ignored.
The draw leader, on the other hand
leads by use of validly earned
'
recognition and creative
c?mmunication on what people do
n_ght, not _what they do wrong. He/ she
~1ves pr~c1se fe~dback, involves people
~n assessing their work, is open to
innovation and evaluates rather tha
value judges.
n
The develop leader causes people to
feel reverence for themselves and treats
them as equals. He/she has high
expectations for people based on
reality, causes his/her people to be
competative and co-operative
simultaneously, teaches achievement
motive, lets people own and solve their
problems and encourages new values.
12
Because of the variance in leadership
(management), group (staff) function
also varies and can be slotted into
t~ree levels, according to Hegarty who
hsted the following ways in which
groups function:
A. Low energy - low confluence
. No ~ne interested in doing his/her
1ob or in a~sisting others in group.
Causes: dnve leadership; default
leadership; lack of communications·
~ack of explicit job descriptions; w~rk
imposed by boss; no requirements to
perform.
Results: high levels of boredom and
stress; lower self-esteem of indi "d I .
v1 ua s,
1 . d" "d I
ow m 1v1 ua productivity; high rate
of staff turnover; resistence,
resentment, revenge cycle when people
spend more time and energy to get out
~f wo~k than it would take to do the
1ob with excellence.
B. High energy - low conflu
Ind"iv1"d ua Is are interested ence
in d .
om~in
their job. but they have no interest
suppo~tmg o_thers in the group. The
sometimes view others in th .
Y
as adversaries.
eir group
Causes: lack of explicit job
descriptions; over-emphasis 0
..
I
n
competition;
ack of communi·ca t ion·
"
· I d
d rive ea ership; default leader h " .
R_esults: hi~h levels of suspicio~ ~~d
distrust; high levels of stress and
Jboredom; high rate of staff tu mover·
ow group productivity; resistance •
resentment, revenge cycle; low selfesteem.
C. High energy - high confluence
Individuals want to do their j0 b
~ith excellence. They are also s
int~r~sted in and are rewarded for
ass1stmg others in the group.
Chris Hegarty's leader profile
Should I be trusted?
Am I trusted?
How can I be trusted (more)?
Am I able to handle being misunderstood?
Am I a hie to handle being disliked?
6. How much control do I have over what I do (in reference to my
1.
2.
3.
4.
5.
work)?
7. How much control do I have over when I do what I do (in reference
to my work)?
a) How much power (in a positive sense) do I have over my work?
b) How much power (in a positive sense) do I give those who work
for me?
8 . How much control do I give the people who work for me over what
they do (in reference to their work)?
9 . How much control do I give the people who work for me over when
they do what they do (in reference to their work)?
10. ls my need to be needed greater than my desire to grow as a leader?
11. Do I retreat to things familiar when under challenge?
12. Does my self-esteem depend on being treated fairly or am I more
interested in having more freedom to do my own thing?
13. Do I feel the exercise of authority is the most effective way a leader
can use to get things done?
14. Do I feel that allegiances are what get things done on a permanent
basis?
15. Do I feel people often live up to the level at which they are trusted?
16. Do I feel people have to be distrusted?
17. How many people do I think lose their jobs because of
incompatibility rather than incompetence?
18. As a leader, am I more concerned with efficiency of my workers
than with their effectiveness?
19. If my workers were to describe me as a leader in one word, what
would most of them answer? Why?
20. Which of the four forms of leadership do I use most?
a) Drive b) Draw c) Default d) Develop
21. Does my leadership raise the self- esteem of my people?
22. Does my track record verify what I say?
23. a) In relationship to the people I am responsible for, what form of
communications do I most often practice?
1) One way 2) Two ways 3) Congruent way
b) Does my form of communication vary depending on which
Chris Hegarty (left) chats with Patrick G d
.
.
CCCS, and Elliott Horner Cred"t U . C e gel, special pro1ects co-ordinator for
'
1
mon entra of Manitoba .
employee I am dealing with?
24. What do I do to break the set and setting of what I do?
25. What do I do to break the set and setting of what my people do?
26. How do I view tradition?
27. How do I view change?
28. Am I open to de-hiring winners?
29 . Am I open to rehiring former employees?
30. Am I moving toward a higher level of self-direction?
31. What are the ingredients of self- direction?
32. Of the four ingredients
a) which do I excel at?
b) which causes me the most difficulty?
33. Is my work enhancing or diminishing my self-esteem?
Demographics
aid planning
Taking a look across Canada, Dr.
Leroy Stone, a leading demographer
and a senior advisor on population
studies and statistics for Statistics
Canada, delivered to conference
participants a presentation that placed
emphasis on description of patterns
and trends that may have significant
ramifications for the development and
delivery of credit union services.
Panelists Peter Cook, economist of
B.C. Central. and Hirsh Tadman,
director of research, CCCS, added
further comment.
It was pointed out that various age
groups would create market impact
between now and the end of the
century. For instance the largest age
group in 1980 will be the 19-21 year
olds. By the year 2000, the 35-45 age
group will be the majority with those
people over 65 making up 12 percent
of the population.
"The market we are going to face
will be very different," said Tadman .
"Large cities are going to get much
larger and credit unions are going to
be concentrated in these areas where
competition is strong."
It was predicted that there would be
a slowdown in the rate of house prices
and that credit unions will have to be
more careful in making loans for
homes. A whole new form of mortgage
lending will evolve and create new
challenges.
Informing young people now about
the co-operative movement, was
suggested as good strategy as there
"will be a great contest for their
funds." And preparing to take
advantage of the growing demand for
recreation and travel loans was noted
as a good move. Planning to invest in
environment development, small
business development, electronics and
the personal finance area was also
considered wise.
13
\l
Changing attitudes create impacts
"Credit Unions in Canada have
evolved over the yea rs to meet
changing environments. The
uncertainty of the present coupled with
the inability to accurately predict the
future makes vital an understanding of
the recent past," prefaced Robert
Wyckham to his CCCUE presentation
titled "Changing Attitudes - Credit
Union Impacts."
Referring to the change in the
concept of family, he noted, "The
concept has changed . While the
traditional family unit is in the vast
majority, there has been a significant
grow th in the single parent family.
This makes an interesting challenge for
credit unions. How do you develop
services that w ill satisfy the needs of
one parent families7"
The attitude to family size has also
changed and "children are no longer
always seen as assets, but now are
often seen as liabilities. And one very
potent force in changing behavioral
patterns," said Wyckham, "is that
society now seems to expect more of a
woman than looking after the house
and the kids. Because women have not
found it easy to find financial
assistance in the past , there is a feeling
of hostility among the single and the
unmarried women who need financial
services."
'They are pressing for credit at the
moment. Are you prepared to deal
with increasing demands from this
market segment7" he asked.
From now on there will be a
growing number of senior citizens and
they will present special financial
needs. "Are you prepared to counsel
and assist these people7" Wyckham
queried.
Robert Wyckham pointed out the
problems of housing and the fact that
the attitude that everybody should
have a house on a lot is changing.
Also, education ideas are changing
with non-credit and part-time
programs on the increase. He advised
that credit unions get a fee l for young
people's attitudes in order to deal with
the needs they will experience as they
progress in life.
When it comes to attitudes towards
saving, Wyckham pointed out, "we
14
ENTERPRISE NOVEMBER / OECEMBER/79
have traditionally been a saving nation
and if we are going to change, credit
unions wilJ surely be affected. When it
comes to borrowing, there is potential
for great conflict because there are a
lot of negatives in the minds of people
about credit. Is there a need to educate
the consumer7"
Robert Wyckham continued by
listing some potential impacts for
credit unions:
The Family
1. It is anticipated that the new types
of family units (single parents, cooperative families, one-sex couples)
will remain a minority. Credit unions
may wish to examine the criteria and
processes used in granting and in the
sale of deposit instruments to meet the
characteristics of these new groupings.
2. The single-parent fa mily, a growing
special segment, may warrant the
development of services designed to
meet their needs.
3. Smaller families may cause a change
in the typical fam ily financial life
cycle. A change in the time at which
most families switch from being net
borrowers to net savers could have
profound effects on credit unions.
4. Smaller fami ly units may well result
in a changed orientation to the
personal financing of post-secondary
education. Instruments used for this
p urpose should be examined to see if
they meet the changing situation .
5. With the female labour force
participation rate expected to continue
at a high level. and with salaries for
females rising, greater demands on
credit unions by females also can be
expected .
6. Financing of retirement years may
be the most important cha llenge facing
credit unions. It seems likely that
government programs will fa ll short of
needs and expectation. Personal
planning will be necessary to make up
the short-fall. Credit unions must be
prepared to assist their memberships.
Housing
1. Credit unions will have to develop
programs to assist their members in
dealing with the future housing
situation. Ways must be developed to
assist consumers to reach their goal of
single-family housing.
2. Credit unions may wish to get more
fully involved in the housing market
by acting as developers, assisting in the
creation of co-operative housing or
not- for-profi t housing . Credi t unions
may wish to act as land banks to help
control the inflation in land values, or
Cathy Manson, manager of Grand Forks District Savings Credit Union (left) has a
discussion with Eldon Anderson, corporate secretary of Credit Union Central
(Saskatchewan) and Robert Wyckham, while Lou Campana, manager of Summer/and and District Credit Union (seated) ponders over a delegate's remarks.
provide profits to assist in other
housing programs.
Education
1. A re-examination of the role of
credit unions in educating members
rnay be suggested by the tremendous
demand for non-credit educa tion
courses.
2. The development of a pool of
highly motivated, well-educated,
career-oriented graduates will provide
credit unions, and their competitors,
with a valuable source of talent. Fitting
these people into current operations
will require much skill.
Religion and Recreation
1. Does the trend to more traditional
values in religion have any
implications for the application of cooperative philosophy7 Credit unions
which have moved away from cooperative notions may wish to reexamine their position.
2. Rising cost of travel suggests
examination of such things as: cooperative forms of small-group travel
in credit union vehicles; a creditunion•owned chain of low-cost motel
and camping outlets.
3. The demand for physical fitness
suggests that credit unions may want
to organize fitness testing and
recreational counselling for their
members, in co-operation with the
YMCA or municipal recreation
departments.
Savings and Credit
1. Consumers want to save, even in
time of inflation. Will it be necessary
for credit unions to develop inflationproof savings instruments7
2. In developing marketing plans fo r
payment cards, credit unions must be
cognizant of the conservative attitudes
of Canadians toward credit. It w ill be
necessary to design the launching of
payment cards to meet the consumer's
needs.
3. Continuous monitoring of consumer
attitudes and behaviour in the use of
credit and debit cards must be carried
out.
"Changing attitudes," concluded
Wyckham, "are going to have
considerable impact on your
organization."
Panelists Cathy Manson, manager of
Grand Forks and District Credit
Union, and Lou Campana , manager of
Summerland and District Credit
Union, added comment to Robert
Wyckham's presentation.
"We must learn to cope with
changing attitudes" emphasized Cathy
Manson. "If we refuse to acknowledge
change, we may be asking 'where did
we go wrong?' "
She advocated that credit unions
should be involved in community
activities and also in educating and
informing the community. She felt that
using members of all ages as sounding
boards for ideas and involving staff in
forming new services, were essential
processes. She also saw a place for
credit union involvement in future
recreational development.
Lou Campana advised that credit
unions should take a good look at the
need to meet current demands such as
those of the young people and women
in the work force. He noted that the
young people of today save little,
borrow and spend, and rely on credit,
as opposed to today's seniors who
have tended to be savers.
"Where will savings come from to
replace the savings habits of the
seniors7" he asked. "And where will
the new leaders of credit unions come
from7 Will the young accept present
credit union concepts? We have to get
off the interest rate syndrome and get
into developing the services our
particular members need."
(Dr. Robert Wyckham is a Professor of
Marketing Research at Simon Fraser
University, Burnaby,
B.C. )
CFDP looks to grassroots
Jack Craig, Professor in the
Sociology Department of York
University and Project Manager for the
Co-operative Future Directions
Committee, explained that the Cooperative Future Directions Project
(CFDP) is a research and action project
aimed at helping the Canadian Cooperative movement understand its
changing environment and clarify its
desired direction.
The project focuses attention on
these management issues: democratic
control, the workplace, co-operative
and government relations, co-operative
development in new areas, the co-op
image and the public. co-ops and the
native population of Canada, cooperation with co-ops in other
countries, worker-owned coopera tives, social audit, financial
developments, new business
opportunities, national organiza tions
and development of co-operative
theory.
Craig pointed out that the committee
is looking for involvement from the
grassroots level, not just an elite group
active at the national level. He said
that the vision credit unions originally
had, to overcome usury and ensure
and the o rdinary individual had access
to savings and loans, has been
realized. What then is the vision credit
unions want to achieve in the next two
decades?
The CFDP will be carried out over a
three-year period and is sponsored by
provincial and national co-operatives
from all sectors. The committee is
working on an audio-visual
presentation for use at annual general
meetings, is involved with the CBC in
producing documentaries about co-ops
and credit unions and is planning a
major conference in Ottawa to be held
June 14 - 18, 1982. All co-operators are
encouraged to plan to attend.
ENTERPRISE NOVEMBER/ OEr;EMBER / 79
15
Lapierre decries lousy PR
Laurier Lapierre, assisted by Silvana Giesse, listens to a delegate's comments.
Panelists: (/. tor.) Dick White, Jack Schriener, Pat Young and Al Charbonneau.
16
"You have the lousiest marketin
and public relations program of a;
. . m
. t he w ho Ie world " y
organization
exclaimed Laurier Lapierre as he'
proceeded to impress on delegates to
the CCCUE the need for credit unio
to seek a higher profile both externa7i5
and internally.
Y
"Men:ibership s~~ms to have a high
rate of ignorance, he continued.
"Every day we are bombarded by the
banks. Even the schools are
bombarded by material from the
banks. I was scandalized recently whe
I went to a high school class and foun~
only three students were involved with
credit unions ."
"Maybe our problem lies in
communication," answered Al
Charbonneau . "Do we sometimes try
to focus communication to the public
rather than to our members?"
It was pointed out that people do
not participate like they used to in
their credit unions, part icu larly if it 1s
of any size, because there isn't the
opportunity for them to do so, and
because the business schedule of credit
unions has necessarily changed.
John Macintosh, Scarborough
Educational Credit Union (which has a
large membership) felt, however, that
being big was no reason for a credit
union to not involve members. He
advocated the rep system used by his
credit union, which has among the
membership about 400 representatives
who filter information and ideas from
their groups of members, to the board.
The board uses this feedback as a basis
for deliberations on the credit union's
operation.
Referring to current pressures on
credit unions, Lapierre asked, "In what
direction should you go? You will have
to ask yourself some serious questions.
One of them is - are you becoming
mini-banks? You should also ask
yourself if your basic values are
obsolete and if you should be pursuing
other values which cou ld be just as
worthy. Make your movement an
instrument of hope."
In the early days, Lapierre pointed
out, credit unions and co-operatives
had a way to reach out to peoele and
that today they should still be reaching
out to provide specialized services to
5uch groups as the young, the women
and the "little people".
It was suggested that one problem
credit unions have today is that they
aren't equipped to handle the financial
dealings of big businesses. Said Jack
Schreiner, "The perception of the
movement is that it is an organization
of small institutions. Should it be? Do
businessmen representing large
concerns have confidence in credit
unions?"
Schreiner also felt strongly about the
fact that credit unions don't seem to be
taking advantage of the opportunity to
"sell side orders." He noted an area RRSPs - where he felt credit unions
were losing out because they do not
provide the professional information
and counselling services needed to
attract the amount of RRSP business
they should be getting.
One reason for th is lack of service
counselling, panelists suggested, was
that the credit unions don't have as
many professional people on staff as
they should. "Perhaps credit unions
haven't been perceived yet as places
with career jobs for qualHied people, "
said Charboneau.
Referring to the subject of women
being involved in credit unions, it was
pointed out that women have
traditionally filled the roles of board
members and that today there are
many women holding responsible
positions in the credit union
movement.
At which point, Pat Young looked
at the service side of the credit union
movement and stressed, "Credit unions
are going to have to pay much more
attention to women's financial needs."
This commen t brought the discussion
back to the need to make both
members and non-members aware of
what credit unions are all about.
Education, panelists agreed, should
certainly be stressed on a local basis to
let members know about specific
services.
After showing a film which pointed
out the low perception of credit unions
by both members and non-members,
Lapierre fired questions and comments
at conference delegates.
Lapierre: How much autonomy can
be left with individual credit unions?
How m uch with the centrals? The
national? What do you perceive as
being wrong with the credit union
movement and with your service?
Charbonneau: One of the difficulties
we (credit unions) are having is that
we are going through a change
process. Times, conditions and we are
all going through a re-evaluation
process and a process of discussion.
But we have the ability to operate in a
democratic structure and we will come
out stronger."
Lapierre: Your movement has one
thing in common all across this
country - trying to find diversity. We,
in Canada, have reached beyond
ourselves and created a country. Your
movement is similar. You were created
to serve those who needed you. Your
movement me t the needs of the time
by reaching out and touching,
teaching, knowing and loving. You are
part of what we have been attempting
to do - to reconcile a people into a
country.
If you are in a period of transition
and dissertation, that is good. But if
you lose sight of your original
purpose, you will be inoperative in the
future . You depend on input from all
around you. You are an essential
instrument of solidarity of human
beings.
Panelists: Al Charbonneau, chief
executive office of Credit Union
Central of Ontario; Jack Schriener,
western correspondent and editor of
the western business section of The
Financial Post; Pat Young, a member
of Vancouver City Savings Credit
Union; Dick White, president of Credit
Union Central (Alberta ), a director and
vice-president of Camrose Savings and
Credit Union.
Discussion determines ....
planning; ensure that members' assets
are fully protected; accountability to
members; to keep afloat in these rough
financial times; to secure competent
management; to move humanity from
its present enslavement to big money
power to the control of the people.
However, as one old-time director
remarked, "There are very few
absolutes." Perhaps a director has no
"key" repsonsibility but instead many
important duties.
Most important . ...
Summary
Summarizing the presentations and
discussions, John Nicholson said that
the concensus of opinion seemed to be
that credit unions have gone through a
period of rapid growth in membership
and services but that the banks have
now caught up and credit unions, from
now on, are going to have much more
competition in providing services.
"It is also evident," he said, "that we
are concerned with democracy and
want to continue to dialogue."
ENTERPRISE NOVEMBER/ DECEMSER / 79
17
~~:~;·;~~f~;~~ prodnurc~t-;i'.v'f'i'lt-yr- :r- :-~'!l" "'j'.'"'- r -: -:r- ~-. ,. . . . ,. .,. . . . . .__
to orgamzmg work, says its
proponent, Norm Bromberger, general
manager and CEO of Credit Union
Central, Saskatchewan. "If people can
meet their own personal goals then the
organization's goals will be more
efficiently met."
QWL is a new approach arising out
of previous approaches to work
?rganization, including Max Weber's
ideal type of bureaucracy' time and
motion studies by Frederic Taylor in
the US, and the Marxist idea that the
collective is more important that th
e
individual. Each approach, says
Bromberger, places the organization
over the individual worker and tends
to overlook environments.
QWL is the notion that
organizations should be more flexible
and. more open in keeping with the
rapidly changing environment
including today's a ttitudes of ;he work
force. Prevailing attitudes include·
l ) people are lazy; 2) there is little or
no loyalty to an organization;
3) workers wish to have greater
~esponsiblity and a more meaningful
JOb; 4) people want involvement in
decision-making; 5) the carrot and
stick approach to motivation is Jess
th,~n satisfactory.
In the co-operative movement "
says Bromberger, "we talk about'
individual involvement, but we don't
practise it. Our organizations are
bureaucracies. "
The "Quality of Work Life"
approach emphasizes: 1) results _ the
organization decides what is to be
done; 2) individual responsibility _ by
the work group in obtaining those
~es~l~s; 3) the work group with
md1v1dual input decides how the
results will be achieved; 4) the aim
objectives, long-term targets, polici~s
etc. of the particular organization are
clearly understood by all.
. Soun~s good, but what does it mean
m practice? Credit Union Central
Saskatchewan began studying the' idea
two and a half years ago. At first,
18
there were real pockets of resistence by
some managers who felt they were
already practicing it or were worried
~bout what might happen to their own
Jobs. An extensive work environment
survey was carried out and it was
discovered that, although most
em~l~yees were fairly satisfied with
the~r Jobs, one big concern was the
desire. for. more information about the
organization as a whole. People
wanted to know what was happening
and how their jobs fitted in. It was
suggested that more communication
~et~~en management and staff on an
md1v1dual. and
I
. group basis would h ep.
0 ne thmg 1s
clear: if QWL is to
succeed, there must be a long-term
commitment from everybody in the
?rganization. Bromberger reports that,
m most cases, there has been improved
morale and efficiency and, therefore,
greater productivity; and there is less
buck passing because individuals and
work groups accept more
responsibility.
The pu~ose of the QWL approach
for orgamzmg work is to improve
productivity, achieve the results
exp~~ted, ~nd improve the employee's
position with respect to decision~aking and how the job is done. As
time goes on, Credit Union Central
Saskatchewan will be pleased to sh~re
its experience with others in the cooperative movement. The board is
optimi~tic about the new approach to
the pomt of suggesting that if
productivity increases, the financial
benefits will be shared with staff.
Roles should be spelled out
Faced with decreasing margins and
critical decision-making,
board/management relationships must
be even more solid today than ever
before. So said Wayne Carpenter,
111oderator, on a panel of four credit
unionists at the Board/Management
break-out session at the CCCUE.
Other panelists included Clayton
Handrigan, board member of
Newfoundland Teacher's Credit Union;
Bob Russell, Swan Valley Credit Union
in Manitoba; Ken Berglund , Sherwood
Credit Union, Saskatchewan; and John
Witt, Western Management
Consultants. Each had personal
vcperiences (relating to
board/ management relationships) from
his own credit union to share with the
participants of the session.
Participants, in turn, provided their
opinions and comments in a thoughtprovoking two-way discussion with the
panel.
Some highlights:
1) A manager should feel trusted by
the board and have the board's
confidence; the board should
appreciate the manager's expertise and
value.
2) In many cases, there is a
duplication of effort when the manager
has to provide presentations to
committees and the board. What about
relieving the manager of committee
responsibilities and allowing him / her
to go directly to the board?
3) The manager should be given as
much freedom as possible to manage
the affairs of the credit union.
4) A clear cut contract should be
made between management and board
detailing the conditions of control.
Each should sit down and discuss
mutual expectations.
5) Communication is the most
significant link between board and
management.
6) Board members should ask
themselves why they were elected. Are
they fulfilling their role?
7) Profitability and good member
relations measure how well the board
and manager function together.
8) Credit unions would be further
ahead if they obtained more guidance
from a stronger provincial central and
a stronger national central. The
opposite point of view was also stated.
9) Boards require a standard of
performance and scrutiny just as
managers do. They should be able to
take criticism. The provincial
organization should lay out these
standards of performance.
10) Boards must face the fact that
credit unions will do well to hold their
own much less grow during the 80s.
Managers are under a great deal of
pressure and deserve their support.
Boards shouldn't meddle in the tough
times anymore than they did in the
good times.
11) Board meetings should include
managers. Keep committees to a
minimum to avoid message passing
and segmenting the board.
Ken Berglund pointed out that
Sherwood Credit Union set aside
several months to develop its mission,
aims and objectives. When the board
arrived at policies it felt comfortable
with, it turned them over to the
manager to develop strategies for
operation. The manager developed a
one year plan and, with the board's
approval, a five- year plan. This
process, Berglund said, did more for
their board/management relations than
hours and hours of discussing could
have done. It gave the manager the
freedom to know the boundaries and
mandate of the credit union - what
business it is in and where it is going.
The session emphasized that the first
task for any board is to agree on
respective roles and relationships.
There should be a detailed discussion at a full board meeting with top
management present - of the
responsibilities of the chairman, board,
executive committee (if any), CEO and
general manager in all areas of the
organization's operations. Items that
should be discussed at such a meeting
include planning activities, staff, public
and member relations, social
responsibility in the community,
associated organizations, government
relations and expectations of the
board. This leads to standards for and
review of the performances of the
CEO, general manager and
management group. The board can
review its own performance, using the
responsibility agreement as a guide.
Also discussed at the
board/management session was
whether or not a representative from
staff should be on the board; whether
or not there should be fixed terms of
office; and how to attract good people
Delegates respond to a show-of-hands survey.
ENTERPRISE NOVEMBER/DECEMBER/?9
19
ifhe trend is to representative democracy .
Is large beautiful?
Moderator: Aj Gill, chief financial
officer of B.C. Central Credit Union .
Panelists: Sandra Sutherland, lawyer,
vice-president of Vancouver City
Savings Credit Union, a director of B.C.
Central Credit Union; John Nicholson,
vice-president of Cred it Union Central
of Nova Scotia, member of the
Executive Committee of the Canadian
Co-operativeCredit Society's board of
directors; John Vineck, general
manager of Lloydminster Savings and
Credit Union, president of Credit
Union Central of Saskatchewan, a
director of the Canadian Co-operative
Credit Society; Rodger Lutz, chief
executive officer of Westcoast Savings
Credit Union, Victoria.
At June 30, 1979, the assets of the
100 largest credit unions in Canada
ranged from $28 million to $774
million . The top SO had slightly more
than half the total of credit union
assets in Canada (excluding Desjardins
movement caisses populaires) while the
balance of some 2,000 credit unions
had roughly the same amount of total
assets. Fifty-four credit unions had
assets of more than $50 million.
For the purpose of discussion in this
break-out session at the CCCUE,
"large" was defined as credit unions
with assets of more than $50 million.
Panelists, in presenting their view on
the subject of Credit Unions: Is Large
Beautiful? referred to a paper which
listed a number of philosophical
considerations regarding large credit
unions:
(1) Are co-operative principles less
evident among large credit unions?
(2) Is it impossible for a credit union to
maintain effective relations with 15,000
or more, or is it merely more
challenging?
(3) Can a board of seven or even
fifteen directors be truly representative
of such a large group?
(4) Do their members have more in
common with customers of other
financial institutions than with
shareholders of a co-operative financial
institution?
(S) Are annual general meetings really
meaningful when attendance averages
two or three percent of total
membership?
(6) Are directors elected by groups of
insiders who may not reflect the
overall composition of the
membership?
(7) Do members who use outlying
branches have a say in the affairs of
their credit union?
Panelists also considered the fact
that to some, large credit unions risk
becoming just another "near bank". To
others, they are considered overly
sensitive to individuals and / or small
pressure groups that attend the annual
meeting but whose preferences may
run counter to the general
membership. Then, too, the fast
growth of the large credit unions has
resulted in a large influx of
management and other employees who
are more tuned in to conventional
banking rather than a co- operative
environment.
It was also suggested in the paper
that large credit unions often feel they
are "carrying " smaller credit unions,
through their funding, leadership and
participation in provincial
organizations, as well as in the
marketing programs and the visibility
they provide for the entire movement.
On the other hand, it is the small
credit unions' image of "grass-roots cooperation" that is considered a major
reason why generally favourable
provincial legislation continues to
benefit large and small credit unions
alike.
It was also pointed out that large
credit unions are more complex to
operate and more susceptible to
economic and rate pressures.
Even though large credit unions
have - because of their size - different
opportunities, needs, and problems
than their smaller counterparts, all
credit unions have many things in
common, it was noted. Every credit
union is owned by the members it
serves; is guided by the decisions of its
member-elected representatives to the
board of directors and other
committees; is part of a dynamically
diversified movement; strives to be
responsive to local conditions
regardless of size.
Referring to the question of whether
a board can truly represent a large
group, John Vinek responded, "Yes,
they can. In our credit union our
nominating committee is fairly active
and each year they assess the makeup
of the board to see who is retiring, etc.
As an objective, we try to have a good
mix of members on the board. At the
present we have three farmers, two
teachers, an insurance agent, a
business woman, a retired person, a
businessman and a wage earner. We
feel that by being able to draw
directors from a wide membership
base, we can obtain a good cross
section of member representation."
Summarizing his presentation, Vinek
said, "Smaller units can and will
continue to service their members'
needs but they will have to become
full service units to service the
diversified financial requirements of
their members. The large credit unions
are doing this very effectively. Yes, big
can be beautiful, so long as it is not
just for the sake of being big. "
To which another speaker added, "A
virtue of bigness has to be that we can
do collectively that which we can't do
as a myriad of small units. We are not
looking far enough to see what we can
do as a group."
"When we talk about democracy, we
;ee an ideal goal and goals ~re
important," stated Jack Craig as he
Op ened his conference talk titled
' Representative Democracy" .
He pointed out that direct
democracy no longer serves the
ember's needs and that in a world of
rarge organizations we, in order to
. d
k
survive. have to hn ways to ma e
. d
k · both
representative emocr~cy_ wor m
large and small organizations_.
This process of representative f 1 .
democracy has been most success u m
. h h
1 d
organizations w~ic ~~e ent 0 Yf . 1
long-term pl~nnmg, hm~g o ana ytica
experts, vertical and horizontal
·
d'ivers1·f·ica t.ion and largeintegration,
scale technological solutions . This
trend , however, raises many questions
about co-operative principles and
creates conflict in the minds of those
trying to reconcile philosophy with the
need to compete in the marketplace.
Craig suggested some of the
questions that co-operators should be
examining:
1) Should co-operatives be turned over
to the specialists who would do more
of the decision making?
2) Should boards of directors be
professional directors?
.
3) Should more decisions be centralized
in the CCCS level, or in a new super
North American central?
4) What role does the or~inai:
member have in the credit union
movement?
5) What does member involvement
really mean?
6) Is small beautiful? ls large beautiful?
or?
7) What is your definition of
democratic control in the credit union
system?
Craig pointed out that there are two
major goals in a democratic system:
full development of every individual's
capacity and the structuring of th_e
organization on universal laws with
freedom to change those laws.
"A participation base is necessary,"
• he said, "to make democracy work.
'b'l'f
ave been un d erRespon~i i i ,!es h
e~phas1zei~·too much talk about past
Ther~ ments .. observed Craig.
accomplish h ' '
embers all
"W e.impose
.. t 1s on our m
the ~~:i~ that it is important to
. H
rs in lookin into the
involve membe
l
g
future inh or~erlto p danhe advocated the
compre ens1ve Y an
f . t est base planning which
concept o m er
enables problems to be clarified and
analyzed by interest groups that will
be affected , and enables democratic
b d
l
d
plans to e eve ope ·
"This is the main process needed to
revitalize democratic processes," he
1 . d dding "Two provincial
exp ame • a
'
Credl.t union systems have applied .
interest-based planning ideas to their
liquidity managem~nt over the past
five years . Interestingly, these _two
provinces have been able to withstand,
better than the ot h ers, t h e curren t
economic. crises. Why? Because
democratic processes worked ..
Management-by-interest and mterestbased planning are processes which can
d
..
stimulate emocracy.
(Jack Craig is a professor in the
Sociology Department of York
University, Toronto, and project
manager For the Co-operative Future
Directions Committee.)
Jack Craig
20
21
Time management saves time
Twenty-six management personnel
from various points in B.C. gathered
together recently in B.C. Credit Union
Centre. They came from credit unions,
co-ops and B.C. Central departments
to spend a concentrated day looking
for ways to make their time more
productive. Their leader for the day
was Dr. Alec Mackenzie, a specialist in
the field of time management.
Punctuating his lively presentation
by observations such as "We are
tyrannized by the urgent" and "The
average manager is interrupted every
eight minutes all day long", Dr.
Mackenzie involved the group in
examining and solving the problems
that rob managers of time that could
be better spent. He guaranteed that
before he left he would show each and
every one in the room, ways to
recover at least two hours a day from
their current schedules.
"One of the fundamental
characteristics of time," he remarked,
"is that, technically, you cannot put
more time in to a day. You can get
mo re product ivity out of the day and
that means making more effective use
of available time."
How does one set about using
available time more effectively?
1. By establishing priorities
- long range
- short range
- growth trends
2. By setting and sticking to
priorities
- controlling interruptions
- resolving conflicting priorities
- delegating responsibilities
In order to se~ priorities, objectives
must be clearly identified and plans to
obtain these objectives spelled out.
Annual, monthly, week ly and daily
objectives and plans sho uld be listed in
order of priority and then dealt with in
that order.
"Take time to schedule your year's
objectives and plan your days,"
emphasized Dr. Mackenzie. "At the
end of each week, look back over your
list of objectives and see which ones
were not met. And, in trying to meet
all your objectives, remember that if
you start the day with only your
number one objective on your desk
22
..
Dr. Alec Mackenzie keeps track of time as participants complete an assignment.
you will have to work on it until it is
completed and then you can go on to
the next objective. Twenty percen t of
your effort produces 80 percent of the
results, so concentrate on that 20
percent and get the number one
objective done first."
But ... what about the crises that
arise and take over a manager's time
and attention? What about the
demands of the telephone and drop-in
visitors? How does one organize the
cluttered desk and control the urge to
procrastinate? How does one learn to
delegate responsibility and stop
massaging one's ego by insisting on
taking on tasks that could by handled
as well as, or better by someone else?
Can all these and other time-wasters be
dealt with effectively? According to
Dr. Mackenzie, yes - most
emphatically.
One good way to start dealing with
time problems is to comp lete a time
profile with your work team. For a
given period, each member of the team
accounts for each hour of his/her work
day. From this profile will emerge a
picture of where and how time is being
wasted. Now the various contributors
to wasted time can be identified and
dealt with accordingly. It is not always
easy, however, to solve time wasting,
because people are involved and one of
the hardest things to do is change
peop le's habi ts and inclinations .
When trying to correct your own
time wasters, make an effort to solve
the top three on your list first, and
you will probably gain your two hours
a day right there, said Dr. Mackenzie
adding, "Measured against optimum
performance the average manager is 30
percent effective."
Taking a timewaster profile
worksheet , Dr. Mackenzie weighted
and ranked the ten most guilty wasters
of time as they were identified by the
seminar group.
1. Crisis management
2. Telephone
3. Routine delegation
4. La ck of objectives and priority
planning
5. Visitors
6. Attempt too much
7. Personal disorganization (cluttered
desks)
8. Procrastination and indecision
9. Lack of self-discipline
10. Paperwork / reading
Taking a look at the biggest violator
of time - crisis management - Dr.
In a few weeks, the 1980s arrive.
Since 1979 has been a challenging year
!or credit unions, it is probably an
opportune time to consider credit
unions' achievements in the decade .
past and reflect on the further
challenges of the decade now facing us.
In 1968, did anyone anticipate the type
of development and the degree of
111aturity credit unions would achieve a
111ere ten years later?
The phenominal expansion of British
Columbia credit unions is now a
matter of record and is news to no one
1ssociated with the financial sector.
Indeed, the achievement of sustained
high growth rates over a decade was
somewhat mystifying, not only to
others in the financial industry, but to
credit unions as well. Between 1969
and 1978 assets grew at an annual
compound rate of 31.5 percent,
membership grew 11.3 percent and
assets per member grew at 18.1
percent. The system had deposit
liabilities of about $110 thousand in
1969; ten years later they are close to
S4 billion. About one million persons
are credit union members today .
A major shift in the asset / liability
structure of credit unions has been an
attendant feature of expansion. On the
asset side, the portfolio has become
increasingly concentrated in mortgages.
Indeed, credit union growth has been
primarily in residential mortgages, in
response to the demands of the
housing market. Residential mortgages
comprise about 65 percent of assets
today; ten years ago, they accounted
for 38 percent. Personal loans, on the
other hand, have declined from 40
percent to 10 percent of the portfolio
during the decade.
The most notable change in
liabilities has been the decreasing use
of share savings accounts by members
in favour of demand, term and
registered plan deposits. Currently,
shares account for less than seven
percent of the total, whereas ten years
ago they comprised 57 percent. Term
deposits, on the other hand have
tripled from 20 percent to 60 percent
of liabilities over the decade .
Housing market developments, led
by the baby-boom generation,
provided the basis for expansion.
Credit unions, to a certain degree ,
were in the right place at the right time
to finance these needs, but perhaps of
greater significance is the fact that they
were leaders in the competitive
financial marketplace. The decade's
achievements include such items as
mortgages, variable rate mortgages,
Peter Cook
graduated-payment mortgages, the
decision by credit unions to allow rate
reductions when market rates fall ,
daily-interest accounts, free chequing,
golden accounts and innovativeregistered plans. In the past decade
credit unions have provided members
with superior, more flexible services
than the industry in general. This fact
has played no small role in their
development .
The hypothesis that membership
growth has largely resulted from
superior services such as those
mentioned above, is supported by
research studies which show that credit
union members are more financially
astute than non-members. (see
Enterprise, January / February , 1979,
page 20) For example, a member is
twice as likely to make use of
mortgage services, term deposits,
RRSPs or golden accounts than nonmembers are at their institutions .
Further, members are also twice as
likely to use more than one institution
than non-members in order to take
advantage of a wider range or more
specialized services.
When comparing credit unions today
with their position ten years ago , one
striking development can be noted and
that is the degree of maturity which
the system has achieved in a relatively
short time. In 1969, the ratio of all
loans and mortgages to deposits and
shares was 105 percent. Today, that
ratio is less than 90 percent. In the
same vein, liquid assets have gone
from 12 percent to 15 percent during
the period . Ten years ago , credit union
operating statistics reflected an
industry in its infancy when compared
to financial institutions generally.
Today, the credit union system has a
liquidity pool which compares very
favourably with other sectors of the
finance industry.
In the past decade credit unions have
evolved from a small financial system
to a large and mature segment of the
finance industry. They achieved and
sustained high rates of expansion by
financing the mortgage needs of a
housing market which was responding
to the requirements of the baby boom
by making available better and more
flexible products and services than
were the industry norm. Credit unions
today are vastly different from 1969 .
Where will they be ten years from
now?
by Peter Cook
Economist
ENTERPRISE NOVEMBER/ DECEMBER / 79
ENTERPRISE NOVEMBER / DECE MBER/79
23
Champlain Heights
Family housing. a co-operative effort
In a province where many hundreds
of _n ew. homes are built annually, forty
units of family housing may not
appear very significan t . The innovative
features of a development presently
under constructio n in Vancouver's
Champlain Heights, however, has
attracted considerable attention over
the past year.
A committee composed of members
of B. C. Central Credit Union (board
and staff) and members of trade unions
(I.W.A. 1-217, 1.W.A. 1-357, B.C.
Government Employees Union)
developed a concept, applied for, and
received a grant from Canada
Mortgage and Housing Corporation.
The o bjective was to establish an
active continuing relationship between
credit union organizations and labour
unions in B. C. for purposes of
providing resources and incentive to
local organizations throughou t the
province to join together in a common
effort to initiate specific housing
developments.
The Champlain Heights project,
known as Enclave 17, loca ted in the
south east sector of Vancouver is a
pilot project. Architects from the firm
of Downs, Archambault were retained
to design a mix of forty patio houses
and townhouses with the aims of
overcoming the usual "row housing"
effect generally associated with
multiple housing and of providing a
sense of privacy while making wise use
of land and natural foliage. As well, in
an effort to further depart from the
"tunnel effect" n ormally encoun tered in
ro':" housing, one h alf of the forty
units were designed as one storey patio
type houses while the remaining half
were two storey townhouses.
Eventually, plans for eleven small
clusters of three and four units were
produced with each home having a
pa tio exclusively for its own use.
It is anticipa ted these homes, which
24
~.
/".
,,.
re built on 4.6 acres (10.4 hectares) of
City of Vancouver ninety-nine year
prepaid lease land, will be marketed
inder the Strata T itles Act in the
149,000 to $57,000 range. Specific
,elling price for each home will depend
an type as well as location on site. Of
!he forty units, the mix is comprised of
oine two-bedroom one-storey units, .
eleven three-bedroom one- storey and
1wenty three-bedroom two-storey
mits. Completion for the first cluster
was scheduled for the end of October
and subsequent units following
;equentially with anticipated
completion by the year end of 1979.
To date there have been many
inquiries and twenty-six interested
purchasers have made deposits. The
Jllarketing program is being coordinated by Mark Bostwick. For
further marketing information, Mark
can by reached at 291-9611 or
Z28-0430
Greentree Developments Ltd., a
wholly owned subsidiary of B.C.
Central Credit Union, assumed a ro le
of developer and project managers for
this development, while financing is
being provided by credit unions
through Central Financial Corporation.
It is hopeful that projects such as
Enclave 17 will slowly but steadily add
to the provincial housing stock of
desperately needed affordable housing,
and, depending on the success of
Enclave 17 and the economic climate
of a very volatile housing market, it is
hopeful another enclave in the same
area may be investigated for a similar
housing project in the near future.
1
by Don Nann
Manager
Green Development Limited
During 1979, four credit unions have
passed the $2 million asset milestone in
their growth. The credit unions were:
Kaslo Credit Union, Pender Harbour
Credit Union, Mt. Pleasant Credit
Union and Quadra Credit Union.
We extend congratulations to these
credit unions and wish them continued
success in bringing the benefits of
credit union membership to the people
within their common bond.
Reminder
The May Campbell Bursary Fund, a
perpetual education fund was
established in 1975 by Westcoast
Savings Credit Union in appreciation
of the work done by May Campbell in
the credit union and co-operative
system. The fund is available annually
to assist women to participa te in
training courses, seminars, etc.
This is training courses season, so if
your credit union wishes to have a
female employee participate in any of
the courses offered, please inquire
through B.C. Central's Development
Division for further information about
the fund. If your credit union has
assets under $1 m illion as of December
31, 1978 , your course participant (male
or female) is also eligible for a 50
percent financial assistance from B.C.
Central Credit Union or 25 percent if
your assets are between $1 million and
$2 million, towards course fees, travel,
accommodation, m eals and
replacement staff.
by Gertie Rubio A labau
Development Division
ENTERPRISE NOVEMBERI OECEM BER/79
ENTERPRISE NOVEMBERIDECEMBER/79
25
~rawing
.....,..
Board _ _ _ _ _ _ _ _ _ _ __ ,,.
Do you have members who
complain about inflation, agonize over
meeting monthly household budgets or
criticize a payment system that forces
them to scurry about at least once a
month paying bills and clearing up
payments that have gone astray? No
doubt you do and, being involved in a
member-oriented credit union, you'd
probably like to help them. As it
happens, there may be a way.
Let's take a look at the lifestyle of
Harold B. Average. He is your credit
union member and all of the
characteristics mentioned in the
opening paragraph apply to him.
Harold rents his home, has life
insurance policies to protect his family
and belongings, maintains his home's
upkeep and purchases a vast array of
consumer goods throughout the course
of the year (the majority of which he
knows well in advance).
How can your credit union help
Harold? Using conjecture - what if
your credit union lent enough money
to Harold at the beginning of his fisca l
year to meet all of his basic domestic
needs and arranged for him to pay out
the loan in one year with monthly
installments? But what, you are
saying, is the advantage to Harold,
and besides, isn't what you're talking
about basically a more sophisticated
budgeting system?
True. What I'm talking about is
essentially a sophisticated budgeting
system and the advantage to Harold
can result in real savings in both time
and money - if Harold does a couple
of very simple thii:igs. If Harold thinks
of the goods and services he purchases
throughout the course of the year as
commodities which when purchased in
bulk or in advance will provide both
discounts and a hedge against
inflation, the funds he borrows to
finance these purchases will actually
save him money.
Let's assume that Harold's known
yearly expenses amount to $5000. This
includes rent, heat, utilities, insurances
and storable items such as frozen
meats, canned and packaged goods.
Let us also assume that he is able to
obtain a 15 percent bulk purchase or
advance payment discount on these
goods and services from the vendors
and that his landlord would enjoy the
advantages of investing funds (pre-paid
rent) and eliminating collection
problems. Let us also assume that his
hedge against inflation is six percent
based on the current annual rate of 9.6
percent amounting to a gross savings
of 21 percent or $1050 on purchases
valued at $5000. Harold would borrow
$3950 from your credit union at 15
percent with monthly payments of
$356.61 for a total of $4278.19,
resulting in net savings of $721.81. In
addition to this saving, there would be
the various service charges saved in
not writing cheques and, of course,
Harold's time would also be saved. He
would not even have to make loan
payments in person if he authorized a
payroll deduction.
What your credit union has done is
saved Harold a significant amount of
money, simplified his budgeting
systems, helped him control his
spending, insured his basic needs for
one year and made it easier for him to
set aside a little money for his future.
There are, however, some
drawbacks to such a plan for Harold.
For one thing, the scheme is dependant
on Harold's ability to secure discounts
from vendors and his landlord, in
order to make the plan financially
beneficial. Secondly, Harold would, to
a certain extent, become locked into a
particular lifestyle for a minimum one
year period - living in the same home
and eating from the same side of beef.
Last and probably most important,
Harold has to take the time to plan his
year out effectively and that is not an
easy task . In any case, Harold and the
credit union would have to sit down
and work out a plan that would meet
his particular needs.
As for such a program's
marketability, who knows? Budget
programs are not new, consolidation
of debt loans have proven to be
effective in the past, and time has a
way of making people need new ways
of doing things. Remember when
RRSP were just four letters in the
Income Tax Act?
by Stan Alexander
Development Division
Success depends . . .
How to cause: let your people solve
their own problems; bring people of all
levels together; create mutual support
agreements; hold reverse staff
meetings; manage with continuity;
respect personal values; give people a
voice in who you hire or promote;
create revolving work units.
Results: clarity, communication,
commitment; people produce high
levels of achievement; low staff
turnover (except for upward turnover
where staff member, because of
learning from leader, progresses to
higher levels of employment); high
self-esteem; exceptional client loyalty;
high level of trust (at all levels); low
stress and boredom.
This group is created and maintained
by a develop leader who employs a
creative and relentless training and
development program.
Everyone on the work force has
three major needs, stressed Hegarty:
the need to be rewarded tangibly pay, promotions, etc. - for what
he/she achieves; the need to be
accepted as a unique person; the need
to be appreciated as a human being as
well as for the function he/she
performs. And for most people, he
concluded, competition is not the only
factor in job excellence. The desire to
be productive and the satisfaction of
handling challenging tasks, are also
powerful factors.
Average forgeries this year have
by over $100 per claim; not
1nly is the total dollar loss on the
1pswing, so is the number. Most fraud
osses are not covered under the
,faster Bond; only forgeries are. The
easoning is simple. While funds and
1ccounts can be verified by telephone,
.ignatures cannot. Frauds can a lmost
tlways be avoided, forgeries cann ot,
iut they can be kept to a minimum.
If every teller fo llowed the
1rocedures listed below, frauds would
1e reduced by more than 50 percent.
1. A lways insist on cheques being
0creased
endorsed in the teller's presence even if
the cheque has a lready been endorsed.
(Signs which state '"To prevent fraud,
please endorse your cheques in front of
the teller" act as a reminder to tellers
and assist in educating members)*
2. Hold funds on all cheques.
(Losses would be nil if this practice
was adhered to at all times.)
3. Never cash cheques for
nonmembers. Where the person
belongs to another branch, insist on
proper I. D. (Again, a successful sign is
"We cash cheques for members only.)*
4. Always check signatures against
the signat ure cards. If there is any
doubt, request a second signature.
5. Avoid third party cheques unless
the member is well known. Most losses
occur on new accounts which have
been opened fo r less than 3 months .
6. Call the originating financial
institution to ascertain there are
sufficient funds, and that the account
is genuine.
• (Our thanks to Richmond Savings
Credit Union.)
fime management . .. .
tvlackenzie listed a six-point method of
controlling crises:
Log crises - develop contingency
plans
Set objectives - get regular
progress reports
Don't over schedule
Don't switch priorities
Don' t over react to transitory
problems
Delegate problems to those who
can solve them acceptably
Continually stressing the need to use
time effectively by setting objectives
and by planning on a daily basis, Dr.
Mackenzie pointed out the main
obstruction to successful management
of time.
- Without objectives you can't know
what to do
- Without priorities you can't know
what to do first
- Without deadlines you can't know
when to do them
- W ithout progress reports you can' t
know how you are doing
Conclusion
It would take a volume to interpret
all of Dr. Mackenzie's thoughts on
time management and for those who
are interested in a book's worth of his
philosophy, he has written a book
titled The Time Trap.
For those who participated in the
seminar, it was a totally positive
experience, according to evaluation
sheets distributed and later compiled
by B.C. Central's Education
Department which arranged and
sponsored Dr. Mackenzie's
presentation . On summation, the
general concensus of the day was that
the time had been very well spent.
by Pixie McGeachie
Publications Editor
Management is responsible to ensure
proper training of tellers. Not o~ly is
staff training important, so a lso 1s that
of the membership. Once your
members are aware that these
procedures are for their benefit
(protection). they will be readily
accepted. Approval limits should be
established - large cheques which
require supervisory scrutiny is one
more way of deterring the cashing of
large fraudulent or forged items.
Wherever possible, credit unions
should ensure charges are pressed
aga inst the person perpetrating frau~s the time spent may not seem worth 1t,
but it is a deterrent to future activity
by the criminal who has been released
from prison, or is out on bail.
Everybody in Vancouver remembers
"Mr. X" , but we were responsible for
his success.
by Risk Management Department
Credit Union Reserve Board
Credit Union in Ontario, said that
fixed terms of office were a
condemnation of the democratic
system in that people who want to be
involved are thrown out after a period
of time. He said credit unions should
inspire people to want to join and take
part, not make rules regarding how
long they can participate. But, pointed
out an old-time board member,
perhaps there should be terms so that
new blood comes into the board.
After spirited discussion by many of
the participants (divided almost
equally into managers and directors),
one person suggested that "because the
movement is democratic, what works
for one credit union may not work for
another. We. must work together cooperatively on solutions."
Roles should . ...
to your board by making the .
.
experience of serving your credit union
interesting and worthwhile and by
encouraging people to contribute, learn
and grow.
John Mcln.t osh, member of the
board of Scarborough Educational
Moderator: Wayne Carpenter, general
manager of Surrey Credit Union.
Panelists: Clayton Handrigan, president of Newfoundland Teacher's Credit
Union; Bob Russell, president of Swan
Valley Credit Union; Ken Berglund,
president of Sherwood Credit Union;
john Witt, managing director of
Western Management Consultants.
ENTERPRISE NOVEMBERIDECEMBER/79
26
ENTERPRISE NOVEMBER/ DECEMBER/79
27
Book review
At last there is available to us a well
researched and comprehensive history
of the co-operative movement in
English-speaking parts of Canada
covering the first half of the present
century, or more precisely, from the
early beginnings of the Canadian
movement to the end of World War II.
Previous historical works in this field and there are many - have been
provincial or regional, or dealt with
just one organization or one type of
co-operative only, or did not give an
overall account of institutions seeking
to achieve some degree of unity or
integration.
But in Each For All, by Ian
MacPherson, associate professor of
history at the University of Victoria,
we have in one volume an historical
record that covers all parts of the
country outside Quebec and includes
all the many kinds of organizations
through which Canadians have tried,
under the banner of Co-operation, to
improve their livelihood, modify the
existing economic order, or, in some
cases even lay the groundwork for a
modern utopia. The sub-heading of
Dr. MacPherson's new book is: A
History of the Co-operative Movement
in English Canada, 1900-1945.
Here we have an historian's acco unt
of how co-operatives in Canada came
to be what they are: the European
roots of the movement and the
contributions made by various ethnic
groups; the struggle for legislative
recognition; the American contacts and
influence at a few points; the saga of
the Prairie grain-marketing co-ops,
easily the largest Canadian cooperatives during the period covered;
28
ENTERPRISE NOVEMBER/ DECEMBER/79
the influence and effects of two world
wars and the Great Depression on cooperative development; the careers of
the leaders who made things happen,
including George Keen, whose dogged
efforts to develop consumers' co-ops
after the British model went so often
unrewarded; and the long-standing
struggle between centralists and
decentralists in the estalishment of cooperative enterprise.
Dr. MacPherson provides at least
some of the answers to questions that
have troubled Canadian co-operators
over several generations, questions
such as these: What ever happened to
the string of consumer co-ops in
Ontario that showed such great
promise about sixty years ago? What is
the genesis of the conflict between the
UGG and the Wheat Pools in Western
Canada7 Why did labour unions in
Canada change over the years from
hot to lukewarm, if not cold, in their
attitude and support to co-ops? How
did it come about that Canadian coops, in con trast to those of many other
countries, are so firmly apolitical?
The reader will be interested in
scores of little known facts scattered
throughout this book. I venture to say
that even well informed co-operators
will come upon bits of information
that are new to them; for example,
that Canadian co-ops put up money in
the 1930's, lean years though they
were, to help refugees escaping from
fascist regimes in Europe; that workclothes were once manufactured in a
co-op factory in Toronto; that R. B.
Bennett lent support to the pool signup in Alberta in 1923-34; that
enthusiasm for the boot-straps way
moved Saskatchewan farmers to not
only esta blish the first co-op oil
refinery in the world but also
undertake a co-op reservoir project.
The names of a great number of
leaders in the Canadian movement are
found in these pages, and some appear
again and again. MacPherson makes a
point of dividing them into three
classes: first, the occupational leaders,
who saw in co-ops an instrument of
change for the benefit of a special
section of society; second, the
pragmatists, who provided the
practical knowhow and business
experience needed for success; and
third, the utopians, idealists who
sought to bring about a more just and
equitable social order.
The book is divided according to
periods: 1900-1914, 1914-1919,
1920-1924, and so on, to match the
major social and political eras in
Canadian history, and ends with a
chapter summarizing the state of the
movement in 1945. The author makes
much of the economic conflict between
the "hinterland", basically the agrarian
population and the outlying regions,
and the centres of power in urban
Canada . He concludes: "In an uneven
struggle against the metropolitan
power brokers, the primary producers
of the hinterland found co-operation
one of their most effective protectors .
. . Quietly, but with remarkable
rapidity, co-operative techniques had
become a major defender of the
hinterlands between 1900 and 1945."
The perennial problem of what to do
about footnotes is handled by putting
them all together at the end of the
book, which readers may find
inconvenient. MacPherson's notes are
of considerable value, providing
supplementary details and secondthoughts culled fro m fifteen or so years
of research, much of it done in the
Public Archives of Canada, as well as
in co-operative organizations and
libraries across the country. Students
will find his Bibliography particularly
helpful in their work.
Each For All, is No. 116 in the
Carleton Library, a series of writings
relating to Canada, edited by the
Institute of Canadian Studies of
Carleton University, Ottawa, and
published by Macmillan Company of
Canada .
With one Canadian in three
belonging to some type of cooperative, the movement in this
country is strong in terms of numbers,
but it is a patch-work system,
exceptionally strong in some areas and
relatively weak in others. Its history
too is fragmented, scattered about in a
few books and countless pamphlets
and occasional papers . Ian
MacPherson's work will serve to give
co-operators an overall view of the
movement in which they are involved,
and the general public a better
understanding of what co-ops are all
about.
Ken Casey, manager of Surrey Co-op, and Wayne
Carpenter, general manager of Surrey Credit_LJnion shake
hands to signify their pleasure at the completwn of Cloversquare shopping centre.
C/oversquare mall also houses Maple.Lea~ Travel L_imited's
first branch office not situated in credit union premises.
Surrey Co-op's food centre in Clove~s.quare is _equipped to
give customers full selection and eff1c1ent service. The Coop's head office is now in the shopping complex.
Surrey Credit Union's Cloverdale branc~ has moved into a
bright, spacious office in the new shopping centre.
by Dr. A. F. Laidlaw
ENTERPRISE NOVEMBER/DECEMBER/ 79
29
Trust in
your Credit Union
Twenty years without a promotion
That's how people roasted Arvid
.
Olson a t a surprise party held in
honour of his 20 yea rs of dedicated
service as genera l manager of Salmon
Arm Savings and Credit Union, on
October 13th. Approximately 175
~eopl~ were in attendance at the party,
mcludmg representatives of B.C.
Ce~tral Credit Union, Okanagan credit
unions, past and present board
members a nd staff. Many speeches
were made roasting Arvid and then
congra tulating him and Arvid was
presented with numerou s gifts and a
plaque. Included in the night's
.
festivi ties was Eagle River Branch
Manager Ted Ackerman, dressed in a
red tu-tu, jumping from a huge cake to
present Arvid with a banner which
read "Mr. Credit Union - Better In So
Many W ays ".
~rv id replied to the roasting by
stat ing that even though it has been
"twenty years without a promotion"
the credit union has achieved great
success. When h e first became general
manager in 1959, assets were in the
region of $144,000. Today they are
close to $50,000,000. As the sign on
the head ta ble stated "We've come a
long way".
Ted Ackerman and Arvi'd 01son ,,'Shoppers
Guide photo)
I
for Registered Home
Ownership Savings Plans
TRUST SERVICES are more good reasons to belong to Credit Unions. Through our trust
company, Co-operative Trust, we're able to provide first-time home buyers with a way to save
tax-free money towards the purchase of a new home. People working together for the benefit of
all. That's what our trust services are all about. Ask your Credit Union about an R.H .O.S.P.
today. It could be your "plan of a lifetime."
On
29
of th e progressive
· c onservative Federal caucus met
withSeptember
th
. ' 17 members
.
e executive committee of 8 c Cent /' b
d Fd
Officer Peter Podovinikoff and Ge;ald
ra s oar o _ire:tors, Chief Executive
H
.
Long, B. C. Central s director of government
affairs (left tor· h t) p
:;
eter eyrr:mg, president of B. C. Centra/'s board of directors;
Ken H~rdin
anager of Pnnce Rupert Fishermen's Co-op Association · Ron
Da .
g,
vies, genera 1 manager of North Shore Community Credit Union;and Gerald Long.
30
ENTERPRISE NOVEMBER/ OECEMBER/79
ct
CO-OPERATIVE TRUST ~
COMPANY OF CANADA ~f'
Owned by Canadian Credit Unions and Co-operatives
I+
Return Requested
ENTERPRISE
P.O. Box 2038
Vancouver, B.C. V6B 3R9
Ctm1d1
Polt
Po1tH
C.nad1
Poa. . pMd
Porl payt
~
~--
Third Troisieme
class classe
2072
VANCOUVER. B.C.
Published by
B.C. CENTRAL CREDIT UNION
•
For information about career
opportunities contact one of
these Branch Managers or
supervisors.
Maury Dolder
Ste. 102, 17704 - 56th Ave.
Surrey, V3S 1(7
Phone 574-7475
Jim Pescott
444 Douglas Street
Prince George, V2M 2M2
Phone 562-4422
Henry Krott
3618 Shelbourne Street
Victoria, V8P 5J5
Phone 595-3442
Paul Herdman
Suite 800
1441 Creekside Drive
Vancouver, V6J 4S9
Phone 736-4246
Denis Aubrey
1475 Ellis Street
Kelowna
Phone 763-2332
og the CO·OJJE!lf!!.§.
Serving Together

STARRING SAM TRENCH AND SLICK SHOES IN CUMIS RATES

Transcription

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