Change Happens. Navigating Successful Credit Union Data Conversions.

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1 Change Happens Navigating Successful Credit Union Data Conversions

2 FORWARD Although resolving all technology issues in a conversion is critical, both internal and external communications are no less critical to the project s success. A non-existent or poorly planned conversion process can have disastrous results; a thoughtfully planned-out and executed course of action can ease anxiety and smooth over bumps in the road during the conversion. To help credit unions best prepare themselves and their membership for a core system conversion, we will examine the process through two key lenses: employees and members.

3 GUIDING EMPLOYEES THROUGH A SUCCESSFUL DATA CONVERSION When it comes to communications, it is better to overwhelm than underwhelm. Employees Members: 7,400 Assets: $68 million Locations: Millinocket and Island Falls, Maine expect and deserve to know about major changes in the way their credit union does business and how it can impact their lives. Tina Jamo, Vice President of Operations with Katahdin Federal Credit Union in Millinocket, Maine, feels a key component in this is attitude. Keeping an upbeat and positive approach certainly helped us through the process, especially with the employees, she says. By focusing on the efficiencies and features of the new system, the staff was enthusiastic about the changes. Communication is Key Ensuring that communications is a two-way street is also important, Jamo notes. During the process, it wasn t so much what we told our employees it was what our employees told us. We spent a lot of time doing surveys, evaluating processes, and discussing current practices. This process involved staff and was a real learning experience for all of us. Often, the earlier you can start a communications process the better. Think of it like birthday party invitations. You want to send them out early enough that people can plan their schedules accordingly and attend, yet not so far out that it is forgotten before the important Tina Jamo Vice President of Operations, Katahdin FCU date. Help transition staff for the conversion process by getting them in the information loop as soon as possible. Samantha Noyes, VP of Member Service and Operations with Oxford Federal Credit Union in Mexico, Maine, offers, We began communicating with our staff as soon as we decided to move forward with the conversion process about one year prior to the live date, she says. 9 months before live 6 months before live 4 months before live 2 months before live LIVE Sales handoff to conversion team Review of deliverables Management kickoff meeting Surveys completed Database cleanup Member communications plan begins Training schedule created Initial data mapping Mapping finalized Core conversion code written Preliminary training database developed Install and test connections Custom programs written Staff kickoff Staff training Database verification Third-party integration testing Parallel processing Readiness review Onsite support Synergent senior management onsite visit Conversion team support Handoff to ongoing support team Sample core conversion project timeline

4 Letting your employees know about the conversion early on is a definite help to the overall conversion process. Mary Carrozza, Operations Manager with Mass Bay Credit Union in Boston, Massachusetts, says, Employees should be in the loop from the very beginning. Members: 16,000 Assets: $131 million Locations: Mexico and Norway, Maine If they know a conversion is coming they can provide valuable insight into what should be a priority in the new system. The Importance of Staff Buy-In Gaining staff buy-in before, during and after the conversion process is also critical. Including staff in the planning and decisioning can certainly help with buy-in, says Jen Berry, Synergent Team Lead for Deployments and Training. The management team needs to have an internal plan to demonstrate why changes are coming, what those changes are, who will be involved, and a solid time line of the conversion events leading up to the new changes. Coaching and Staff Learning Curve Conversion talking points communicated with staff necessarily differ in some ways from what you will share with members. Staff, like any other people, can become accustomed to the way things have always been done at your credit union. Transitioning them over to a new system, especially for employees with longer tenure, requires patience and a learning curve. Jamo notes, We wanted to make this a positive change and attempted to relieve the apprehension Samantha Noyes Vice President of Member Services and Operations, Oxford FCU of learning a new system. It really forced our employees to go outside of their comfort zones and become active learners. Filling staff in on how the conversion changes will affect their jobs and the ways they deal with members is also important. Carrozza notes that her credit union communicates changes that affect staff jobs and affect the member. Staff needs to be coached on how to respond to member reaction to the changes. If handled properly, this helps both members and staff to be more comfortable with the transition. Employees should be in the loop from the very beginning. If they know a conversion is coming, they can provide valuable insight into what should be a priority in the new system. ~ Mary Carrozza, Mass Bay CU Change can be hard. This is as true for your staff as it is for your members. Noyes adds, We communicated the importance of change. Our old square pegs were not going to fit into new round holes! Noyes also notes her team communicated how the conversion would affect daily staff work and the way that they serve members.

5 Positive Staff Leads to an Easier Conversion Erica Vachon, Senior Credit Union Representative for Synergent Direct Marketing Services, adds, If the staff is comfortable, well informed and excited about the upcoming conversion, it will be conveyed in their daily contact with members, making them more at ease with the transition. Members will be able to view it in a more positive light if they feel staff has it all under control. Asking questions of your staff instead of simply issuing decrees from on high also helps. Erica Vachon Direct Marketing Services Representative, Synergent One of the greatest lessons learned is not to assume anything, says Jamo. Listen to all parties involved and ask questions a lot of questions. You really have to make sure everyone is speaking the same language and is on the same page. Noyes adds, Preparing the staff and getting them on board was a top priority. The conversion impacts them the most. How they reacted to the change would have a direct impact on our members, through the service provided to them. When guiding employees through a data conversion process, consider the following tips: Provide as much information as early as possible Take time to listen to the questions, comments and concerns of your employees Be prepared to help some employees get out of their comfort zones to learn new ways of doing things Ensure employees know what is expected of them in this time of change Don t assume anything: be ready to learn from the experience and questions of others

6 GUIDING MEMBERS THROUGH A SUCCESSFUL DATA CONVERSION Communicating changes to members is usually a different animal from communicating changes to staff. You are dealing with a much larger and diverse group. They are also less of a captive audience than is your internal staff, making catching and holding their attention a more challenging undertaking. Katahdin FCU s Conversion Poster Overcoming Member Challenges There are ways to overcome these challenges, however. Members love to hear how we are going to make things better for them! adds Noyes. Focusing on faster, more convenient services along with additional security features in a positive, upbeat manner helps to get their buy-in for the change. The more excited we get about changes, the more receptive our members are to them. Jamo concedes that member communication during a conversion process is perhaps the most challenging aspect of the plan. Conversion updates were posted on our website, she begins. On conversion day we did the unthinkable we knew it was going to be extremely busy as we closed on the last day of the month. We chose to barbeque hotdogs outside as a special treat for members. (Board members and the CEO did a lot of the cooking!) We also thought this might take the sting out of longer than normal wait times. Members were receptive and seemed to appreciate it. Keeping the Conversion Message Simple and Relevant While it is important to share as much as possible, credit unions must also be careful to avoid confusing members with technical jargon and other information unlikely to help them through the conversion process. Although every granular detail does not need to be shared with either group, the changes that affect them need to be clearly explained and as well as the reasoning for the conversion, shares Carrozza. Knowing why the conversion is necessary helps with accepting the resulting changes. Conversely, while it is not imperative to get into the granular details of the changes, as noted above, Berry adds that sufficient detail is key to help alleviate potential member confusion and fear. The credit union and staff need to inform their membership of all pending conversion changes, Berry notes. This could be changes to third-party integration, new product offerings, any changes in existing products offered, any regulatory announcements and the timing of conversion activities. Issues are always expected to be kept to a minimum. If a foreseeable issue is expected the credit union should be proactive in notifying their staff and membership to alleviate any panic.

7 When guiding members through a data conversion process, consider the following tips: Members: 14,000 Assets: $170 million Locations: Boston, Medford, Quincy and Everett, Massachusetts Communicate the change in succinct language that focuses on the benefits to the member Think outside the box and look for unusual ways to inform members about the coming change Don t overwhelm members with jargon-laden language or technicalities Think ahead, anticipate possible hitches in the conversion process and have a plan in place to best inform members DATA CONVERSION COMMUNICATIONS TOOLS FOR STAFF AND MEMBERS Communications cannot be understated when it comes to letting folks know about a systems conversion process. Noyes agrees, sharing, Constant communication through conversation, , newsletters and meetings ensures that everyone is aware of the changes that are coming. She also states, It is also important that employees understand that each individual has a role in the success of the conversion. Helping them see and understand what they can do to assist in the process, whether it is on a large scale or a small scale, gives them a sense of ownership in the process. Use Every Communication Tool to Help the Conversion Process When it comes to communicating during a conversion process, get ready to roll out the full arsenal at your disposal. Carrozza states her credit union used Newsletters, letters, website and employees themselves. We strived for a consistent message delivered repeatedly by a variety of means. Jamo emphasizes the importance of utilizing credit union staff as communications vehicles during a conversion process. We kicked off our conversion training with a meet the conversion team reception, she begins. We invited the Board of Directors to participate. At this meeting, the conversion team was introduced and they presented the steps in the process. The conversion team did a great job putting employees at ease. After this meeting we held a number of staff meetings where we asked for crucial staff input. CONCLUSION Steering your credit union through a core systems conversion process is not an easy task. With the right tools and preparation, however, it is not an insurmountable one. Preparing well in advance, keeping both staff and members in the information loop and looking at the best practice ideas from others who have already gone through this can help. When looked through the prism of greater member satisfaction and service, a successful conversion process becomes remarkably important and will benefit your credit union s development for years to come.

8 SYNERGENT offers solutions and services exclusively to credit unions to compete in today s marketplace. Our delivery is designed to increase operational EFFICIENCY, CAPITALIZE on credit union growth opportunities, ease regulatory compliance, and enable the electronic services your members are demanding. We are a single organization composed of different service divisions, all located UNDER ONE ROOF, in a state-of-the-art facility in Westbrook, Maine PO Box 1236, Portland, Maine White Paper 4/2013