Leadership Down the Line: A Spotlight on Branch Management

Jenny Boyle
October 6, 2009 | COMMENTS

They come face to face with your membership every day. They hear their questions of concern over whether deposits are insured, what they'll do if they get laid off, or how they'll pay next month's car note. Branch managers like Kathy LaPaglia are the front-line connection to your members and wear many hats on a day- to-day basis.

LaPaglia, branch manager for Silver State Schools Credit Union, remembers the frightful months surrounding the collapse of the financial industry and how things have since transpired. The panic that swept the nation when giants like IndyMac and AIG faltered could be seen on the faces of every member who walked into her Henderson , Nevada branch.

Because Silver State Schools is privately insured by American Share Insurance (ASI) rather than the National Credit Union Administration (NCUA), members suddenly questioned whether their deposits were fully covered. “We had members who were concerned they didn't have that government backing,” says LaPaglia, who has been with the credit union for nearly 18 years, and opened the branch she now oversees. “We had older members, either themselves or family members, who had lost money in the Depression. There was a fear [on the part of the credit union] that they would close their accounts.” LaPaglia was able to sit down with many of them and not only explain the benefits of private insurance, but the credit union philosophy as well.

“It was a comfort for members to see a familiar face,” she says. “We found we had a lot of members who had all their accounts with us. They felt they needed to diversify and it gave us the opportunity to show them how to set up their accounts to be covered. It has been rewarding to talk to them and get them to stay with the credit union.”

Though the insurance panic among her members has since settled, the lingering economic problems in one of the fastest-growing Las Vegas suburbs have brought new challenges. “Here in Las Vegas , we've got about a 10 percent unemployment rate,” LaPaglia says. “Members have lost their jobs unexpectedly. They drop off their car keys and say, ‘I just can't afford to keep the car anymore.'”

LaPaglia says her team strives to work with members who are struggling so they don't default on their personal, auto, or home loans. “Silver State Schools has been very proactive in that process because we know it's a win-win for them to stay current on their payments,” she explains.

Naturally, there are times when members take out their frustrations on LaPaglia and her staff. But she says listening to their situation and being empathetic generally makes an impact. “Bringing them into my office, shaking their hand, and giving them the privacy to talk or vent usually makes a big difference,” she says, giving the example of a member who had requested a reversal of previous year's non-sufficient funds fees because he had lost his job. “He was yelling, ‘this is a non-profit!' and saying how unfair it was,” she describes. “I let him vent. Then I explained that I couldn't reach back into a previous year's books to make the change. He understood, and I was happy that he understood.”

LaPaglia says she finds it effective to approach challenges from an educational standpoint—something likely appreciated by the Clark County School District employees the credit union is chartered to serve—and a philosophy that carries over to her vision for branch success.

She regularly participates in the Leagues' Professional Network activities to expand her knowledge of sales techniques, lending best practices, and SEG-based marketing. She brings those tips back to her staff and encourages anyone who is interested to learn beyond the scope of their current role at the credit union. “We take the time to coach and nurture our employees so they have the opportunity to grow within the organization,” says LaPaglia. “We send every employee who is interested into product knowledge training and new accounts training. They have been very responsive. We have a heavy focus on cross sales as well. We educate staff to have a discussion with each member about their needs so we can fit our products to those needs and anchor them into the credit union. We don't just sell a Visa card to everyone.”

As LaPaglia admits, branch management requires switching gears at a moment's notice. “You are in a position where you have to push down information, accept changes, and run with them. You have to deal with staff and member problems at once,” she says. “There isn't a balance. You've just got to deal with things as they come and prioritize.”

Regardless of what's on a typical day's agenda, LaPaglia says communication is always priority number one. In addition to weekly meetings with her operations and member service managers, and monthly meetings with upper management, she makes a point to get to know neighboring businesses and starts every morning by greeting employees individually. “I think it gives them the assurance that I'm approachable and that we've got an open door policy,” she explains. “Being visible to the members, the community, and your employees makes a big difference.”

Jenny Boyle is senior editor for the California and Nevada Credit Union Leagues. This article was reprinted with permission from Credit Union Digest, the publication of the California and Nevada Credit Union Leagues.