A Strategic Guide for Implementing a Youth & Adult Advisory Committee at your Credit Union

A Strategic Guide for Implementing a Youth & Adult Advisory Committee at your Credit Union

Executive Summary OPPORTUNITY (Usually a standalone document and presented prior to the presentation of the full toolkit) The young adult market is receiving an incredible amount of attention from businesses in most consumer-focused industries. At 76 million strong, Generation Y (Gen Y) is slightly smaller than the Baby Boomer generation. For credit unions, the need to attract young adults is a practical matter of necessity for survival. The average age of a member is approaching 47 years old -- and rising each year. Research shows banks are outperforming credit unions in attracting young adults by a 3 to 1 ratio. How will your credit attract young adult members and integrate them into the cooperative movement? SOLUTION If credit unions fail to tap into this market, they will continue to fall behind banks in terms of financial services penetration and innovation, making it difficult to stay relevant. They must find an effective way serve Gen Y by offering products and services through their preferred channels and meeting their unique needs. One way to start is to get young adults more involved in your credit union by participating on an advisory committee. Your credit union will gain access to a wealth of knowledge from these young adult members. In return, the committee will be provided with knowledge, tools, and skills to be active and educated members of their credit unions. Below are four topics that offer a snap shot of the toolkit you can use to foster this idea at your credit union. 1. Identify Champions : Movers and Shakers Offer career development opportunities to an employee of your credit union who will ignite the fire. Being a champion requires supporting the idea, mentoring the participants, searching for partners and funding, and general management of the process and committee. 2. Establish Advisory Committee Guidelines Having a set of guiding principles and guidelines for the committee to read, understand, and follow will ensure the success of the Youth Advisory Committee. 3. Recruit Participants: People Power The recruitment of dedicated young adult members is the most critical factor to the success of the committee. Identify the area within your credit union where young members can be chosen. 4. Committee Guidelines & Sample Meeting Agenda Once the committee has been established and its structure has been formed, it can move to the more interesting task of figuring out what exactly it wants to do in addressing the needs of the credit union. 1 Young Adult Advisory Committee Toolkit

Table of Contents Detailed Overview: Opportunities and Solutions Pages 3-4 Seven Step Strategic Implementation Plan Pages 5-6 Detailed Review: Importance of a Youth Committee Page 6 Detailed Review: Identify Champions Page 7 Champion s Checklist Page 8 Establishing Guidelines & Goals Page 9 Sample Advisory Board Expectation (from State Employee FCU) Page 10 Detailed Review: Recruitment Tactics and Plans Pages 11-12 Recruitment Checklist Page 13 Marketing Message Pages 14-15 Meeting Planning Page 16 Sample Agenda (for meetings) Page 17 Sustainability, Success and Process Tracking Page 18 2 Young Adult Advisory Committee Toolkit

Overview This toolkit is designed to provide you a comprehensive approach to developing and implementing a Young Adult (Youth) Advisory Committee within your credit union. While this toolkit will provide you with a wealth of information, there is still much more to consider. Use this guide to work through the most effective and efficient approach best suit for your credit union. It has been designed to address, at best, a strategy for increasing membership of younger generations. OPPORTUNITY The young adult market is receiving an incredible amount of attention from businesses in most consumer-focused industries. At 76 million strong, Generation Y (Gen Y) is slightly smaller than the Baby Boomer generation. This size gives Gen Y significant power to change American society and will play a pivotal role in the massive wealth transfer over the next couple of decades. For credit unions, the need to attract young adults is a practical matter necessary to survive. The average age of a member is a approaching 47 years old -- and rising each year. Credit unions are under-penetrating this market and recent research shows they are drastically missing the target compared to banks by a 3 to 1 margin in attracting young adults. The million dollar question is: How is your credit union going to attract young adult members and integrate them into the cooperative movement? SOLUTION If credit unions fail to tap into this market, they will continue to fall behind banks in terms of financial services penetration and innovation. If this happens, it will be difficult to stay relevant. They must find an effective way serve them by offering products and services through their preferred channels, meeting their unique needs. One way to start is to get young adults more involved in your credit union by participating on an advisory committee. Your credit union will gain access to young adult members and their insights by making them active within the credit union. This toolkit includes processes you will need to follow, to create a committee of young adults who can provide your credit union with the Gen Y guidance needed to attract and retain this segment. From there, the credit union will have the ability to nominate leaders from the advisory committee to become a non-voting associate board member. Then if a member desires, he or she can explore the possibility of becoming a voting member of their credit union board. GROWTH After a successful pilot program gets under way at a few CUs, launch a marketing campaign with testimonials, facts and statistics showing the success of the program. Using the help of Leagues and other trade associations, along with the guidance of our team, we can encourage other CUs to pick this idea up. At first, this new concept may require some hand holding from our team and other CUs where this program is a success. 3 Young Adult Advisory Committee Toolkit

PENATRATION Until this concept becomes widely accepted in our industry, we will have to sell it hard in order for it to be picked up by mature credit unions that may be apprehensive at first. Once we get the first few credit unions on board with this, it will be an easier sell with firm statistics and testimonials. SATIFICATION MEASURES The ultimate measure of satisfaction would be seeing someone move through the ranks of the committee and becoming a full-fledged member of the Board of Directors. Until then, we will have to measure satisfaction with what the committees are accomplishing at individual CUs. This is where maybe a list serve, a blog, a Facebook page or other source of sharing ideas amongst a group would come in handy. 4 Young Adult Advisory Committee Toolkit

Strategic Implementation Plan Seven Steps to Creating, Maintaining, and Sustaining 1. Determine the Why : IMPORTANT!!! One of the key determinants in creating a young adult advisory committee Council is to first identify WHY? The reasons will be slightly different for each credit union but here are some thoughts to consider: Balance flexibility with structured commitment Make it about them Value Diversity Demonstrate Benefits Give them real voice 2. Identify Champions : Movers and Shakers Offer career development opportunities to an employee of your credit union who will ignite the fire. Being a champion requires supporting the idea, mentoring the participants, searching for partners and funding, and keep the process moving forward. 3. Establish Advisory Committee Guidelines Have a set of guidelines, principles and a group agreement for the council to read, understand, and follow. The group agreement should describe the structure of the Young Adult Advisory Committee. 4. Recruit Participants: People Power The recruitment of dedicated, young adult members is the most critical factor to the success of the committee. Identify the area within your credit union from where young members can be chosen. A good starting point may be the Marketing Department as they will be instrumental in assisting with a campaign message. 5. Outline Activities: The Meats and Potatoes Once the committee deals with setting up its structure, it can move to the more interesting task of figuring out what exactly it wants to do in helping the credit union meet its goals. The processes that each credit union uses to make this decision will be slightly different, but typically, the common denominator is the need to ensure each member has a say. 6. Ensure Sustainability: Where do we go from here? Once the committee has been established, it takes work to make sure it operates for a long time, or is sustainable. Key committee priorities should be raising awareness, retaining members and recruiting new members. 5 Young Adult Advisory Committee Toolkit

7. Evaluate Progress: Success Tracking Keeping track of young adult advisory committee activities and progress is a key ingredient to its overall success. It s a way for people to learn and for the committee to flourish. Members can celebrate successes and figure out where to improve Positive outcomes can be used to build a case for new or ongoing projects and products for the credit union to undertake. Detailed Review: Importance of Youth Committee Now, more than ever, it is important to recognize how young leaders can make positive difference within our credit unions. There is a positive connection between involving young adults in community activities and the increase in overall community vitality and engagement. Young adults bring new energy and ideas to standard issues and concerns, often with a unique perspective as to how best to tackle challenges and opportunities. Adding input from this group to the decision making process will provide credit unions with ideas, solutions. Things their input may produce are: to offer relevant products at the right time, improve convenience for members, ultimately increasing their member wallet share and lowering average membership age. 1. Prepare today s Champions to be tomorrow s Leaders 2. Help Credit Unions to live the Cooperative Model Voluntary and Open Membership. Democratic Member Control. Member Economic Participation. Autonomy And Independence. Education, Training & Information. CO-operation among CO-operatives. Concern for community. 3. Engage and increase membership in the a younger market segmentation 4. Prompt acceptance, awareness and diversity within younger market segmentation 5. Align goals and strategic efforts across all channels and avenues within the Credit Union movement 6. Motivate young members and employees to work and volunteer at your Credit Union Selling Points: A Youth Board can provide young people with a forum to voice their needs and allows them an opportunity to make a difference in their credit unions. Every credit union can benefit by actively involving youth in governance. By involving young people, not only are they guided into meaningful activities of leadership, they can also learn about problem solving and gain business experience. A credit union Youth committee can help build relationships across all generations. In many cases, youth members can form mentor relationships with adult champions. 6 Young Adult Advisory Committee Toolkit

State Employees Credit Union in North Carolina shared that the biggest benefits they have received from advisory panels have been word of mouth advertising and ideas for new products and services Detailed Review: Identify Champions A Real Winner! Start with young adult involvement from within your credit union; they are your future leaders. Having a young adult credit union employee champion the advisory committee will allow them to demonstrate their leadership capabilities, effectively recruit and manage the young adult advisory committee, provide them access to senior leadership and preserve the cooperative spirit for the next generation. Champion could be: A valued member. A parent. An employee. A manager. An interested sponsor. A community member. Local government official. School teacher. CALL OUT! 1. Keep in mind the champion and the Youth Council President is two different roles; fulfilled by two different people. While the champion oversees formation and sustainability, the president actually operates the Youth Council for a set period of time. 2. A champion should be someone who supports the concept of Youth Committee participants as decision-makers versus imposing his/her own ideas or personal agenda. If the champion is not a youth, he/she needs to act only as an advisory resource or liaison. Also provide a senior leader that will sponsor the advisory committee and help mentor the champion of the advisory committee. This will provide a mentorship for your employee, a great deal of knowledge and experience to maintain a high level of institutional memory of how the industry became so great, and what it needs to prosper for generations to come. It is also recommended that an administrative employee is made available to the champion and sponsor to aid in the logistics of committee meetings keep them running smoothly. 7 Young Adult Advisory Committee Toolkit

Champion Identification Checklist Start with young adult involvement from within your credit union; they are your future leaders. Having a young adult credit union employee champion the advisory committee will allow them to demonstrate their leadership capabilities, lead recruiting efforts, lead meetings and manage the advisory committee. Identify a senior leader to sponsor the advisory committee and help mentor the champion of the advisory committee. This will provide an opportunity to transfer knowledge to your next generation of leaders. Task Start Date End Date Resources Identify champion(s) within credit union Identify leadership sponsor Identify administrative lead (scheduling, notes, meeting room set up, follow up email) Set goals, expectations and develop a strategic plan for the committee Schedule regular 1:1 meetings between champion(s) and sponsor 8 Young Adult Advisory Committee Toolkit

Establishing Guidelines & Goals for the Committee Start by defining the size and make-up of your advisory committee, here are some recommendations: Who will take part: size, age range and general make-up of group. The advisory committee should be comprised of 8-12 young adults from ages 18-35. Size of committees should be reflective of credit unions size. Commitment timeframe of participants, each member should serve a 24 month term. It is recommended that half of the first recruitment group serve a 12 or 36 month term so that not all individuals are turning over in the same year. The committee will meet 4 times per year; one of the meetings should coincide with your annual board planning session to provide direct access between the advisory committee and your board. Frequency and duration of meetings. Identifying when participants are able to speak within a meeting. The role of credit union staff in meetings. Identifying and outlining individual roles and responsibilities of youth members, e.g. chair/president, vice-chair, secretary, treasurer, or note taker. It is also important to develop a set of guiding principles or an outline of advisory expectations so that each advisory committee member clearly understands their commitment to the credit union and what expectations the credit union has of them. Every Youth Council should have a set of goals. Goals outline the big picture as to why the Youth Advisory Committee comes together and to what end it dedicates its time and effort. Each Youth Council determines its own goals based on the issues of interest/concern and assets it has identified to meet the needs of the credit union. CALL OUT! 1. Goals should be strategic, outlining what the group as a whole would like to accomplish. The committee should review these regularly to make sure their activities are still aligned with its vision. 9 Young Adult Advisory Committee Toolkit

Sample Advisory Board Expectation Provided below is a snap shot from State Employees Federal Credit Union. 10 Young Adult Advisory Committee Toolkit

Recruitment: People Power The recruitment of dedicated young adult members is the most critical factor to the success of the advisory committee. You have to look for candidates that are driven, committed and focused. Starting with the champion(s) identified within your credit union to assume a leadership role on the committee. Create an opportunity to show your champions you are investing in their professional development and empower them to take the lead on helping with the recruiting process. Recruiting Members Now that you have your champion (s) chosen, start tapping them for ways to best reach the types of members you are looking for. Provide a solid understanding or description of what candidates will gain from a development standpoint. Here are some suggested ways to recruit: 1. Pull membership file data and determine how many members fit your age criteria, and do direct, personalized marketing to them. 2. Reward employees for helping recruit candidates (bonuses, time off, lunch with management, gift cards). 3. Social media. See YouTube video for your use in Appendix 1. 4. Branch ads, e-statement emails, web advertisements. 5. Member referral bonuses (paid when referral joins committee). Look for candidates that have a wide range of skills and interests to create knowledge diversity. Some skills to look for include: IT/Computer Science. Business/Management. Marketing/Public Relations. Finance/Economics. Education/Training. 11 Young Adult Advisory Committee Toolkit

Recruitment: Checklist Qualification Requirements to Consider Are they a member of the credit union? Do they have experience, aspirations, educational background or training that would contribute positively to the role of a committee member? Do they have the ability and desire to attend and contribute in regular committee meetings? Do they have a desire to learn about the credit union, its services and the overall financial marketplace? Do they have an open mind, the ability to use sound judgment, a willingness to accept responsibility, and the capacity to speak with one voice once a consensus has been reached? Do they have an interest of the entire membership rather than for personal gain or on behalf of special interests? Do they have a potential conflict of interest, either personal, occupational, or with family members that may preclude committee service? Other Considerations 1. Youth apply to be involved instead of appointed or elected. 2. Balance flexibility with structured commitment. 3. Make it about them. 4. Value Diversity. 5. Demonstrate the benefits. 12 Young Adult Advisory Committee Toolkit

Recruitment: Checklist Task Start Date End Date Identify champion within credit union Develop messaging campaign Select mediums to use in recruiting process Examples include: Pull membership file data and create list of members that fit your age criteria Reward employees for helping recruit candidates (bonuses, time off, lunch with management, gift cards) Social media (YouTube, Facebook, LinkedIn) Branch ads, e-statement emails, web advertisements Referral bonuses Review candidate pool with Sr. Management and Board of Directors Select, notify and celebrate candidates Announce committee and goals to membership 13 Young Adult Advisory Committee Toolkit

Marketing Strategy YouTube Video Scripts: Generic script for all credit unions to use. Open on a screen shot of the famous We Want You! poster that has Uncle Sam on it. Young Credit Union Professional, in generic CU wear from CU Swag, performing a monologue in front on the camera: Credit unions, a cooperative philosophy of people helping people. Being a member of your credit union, you are eligible to become a volunteer to ensure this philosophy is carried on. We are seeking young, motivated, dedicated individuals to share their ideas with the credit union and help adapt to the needs of our members. We are seeking individuals to serve the credit union in the following capacity of a Young Adult Advisory Committee. Serving in a volunteer role will provide an opportunity to move up the ranks, and possibly become a full voting member of the Board of Directors, here at your credit union. In the ever changing world of financial services, we need new ideas to help us adapt and remain a pivotal component in our member s lives. This is a great leadership opportunity and will provide you with experiences you will carry with you, throughout your life. Contact your credit union today for complete details. Become a volunteer today and help ensure the continuation of the democratically controlled notion of people helping people. 14 Young Adult Advisory Committee Toolkit

Script for a credit union that wants to record their own Open on a screen shot of the famous We Want You! poster that has Uncle Sam on it. With CU logo in lower left hand corner. Young Credit Union Professional, in credit union logo wear or generic CU wear from CU Swag, performing a monologue in front on the camera: Credit unions, a cooperative philosophy of people helping people. Join us at (name of credit union) and become a volunteer to ensure this philosophy is carried on. We are seeking young, motivated, dedicated individuals to share their ideas and help (name of credit union) adapt to the needs of its members. We are seeking individuals to serve the credit union in the following capacity (rolls/positions the CU is looking to create.) Serving in a volunteer role will afford you the opportunity to move up the ranks, and possibly become a full voting member of the Board of Directors, here at (name of credit union). In the ever changing world of financial services, we need new ideas to help us adapt and remain a pivotal component in our member s lives. This is a great leadership opportunity and will provide you with experiences you will carry with you, throughout your life. Contact (name and contact information) us for details on how to volunteer and help shape the future at (name of credit union.) Become a volunteer today and help ensure the continuation of the democratically controlled notion of people helping people. Other Marketing Methods External/Internal Website. E-Mail Campaign. Facebook Page. Blog Site. Twitter. LinkedIn. Branch Staff. Word of Mouth. Direct, Personalized Marketing pieces. 15 Young Adult Advisory Committee Toolkit

Meeting Planning An agenda should be set for each face-to-face meeting so that you re effectively using the committee s time and gaining the most from their input. Agenda topics for consideration include: First meeting of each year should include introductions of committee members and an overview of the credit union, including the history, mission and products offered. Any follow-ups from prior meetings. Is there something your Board of Directors wants an opinion on? Any new products or services you want their input on? How can they help you think about your e-marketing efforts. Keep open time to just listen to what they have to say. Minutes should be taken and prepared for each advisory committee meeting. Key concepts should be summarized and shared with the executive sponsor, other senior leadership and the board of directors. Outside of the face-to-face meetings four times a year, you should regularly solicit feedback from committee members on-line via a Facebook page, Google groups, emails or other electronic methods of communication. Also think about how you can involve the young adult advisory committee in your annual meeting or other charity events the credit union participates in. 16 Young Adult Advisory Committee Toolkit

Sample Agenda ABC Credit Union Young Adult Advisory Committee Meeting Agenda Date: Time: Location: Welcome Roll call Credit Union Update Products Services Current campaigns Additional topics Brainstorm/idea sharing Open discussion to share ideas Recap and Next steps Notes: Next meeting time 17 Young Adult Advisory Committee Toolkit

Sustainability, Success and Process Tracking Track your Success Keeping track of activities and progress is a key ingredient to the overall success of the committee. It s a way for people to learn and track the progress, allowing the group to flourish. Members can celebrate successes and figure out ways to improve. Positive outcomes can be used to build a case for new or ongoing funding if needed. Results can be communicated to people within the credit union s field of membership to demonstrate successes, promote the committee and foster relationships. People outside of the community might also be interested in learning about the committee, ie; trade associations and trade publications. Evaluation is a form of research where information is compiled, organized and analyzed to look at the effect of activities. This is done to help make decisions about programs. It helps determine how well programs are working and identify reasons for success or failure. Conducting an Evaluation Include youth members in the development of your evaluation. Think about why you want to evaluate. Develop your picture of success. Determine methods for collecting information. Develop tools for collecting information. Get that Info! Analyze. Communicate Findings Act on Results. 18 Young Adult Advisory Committee Toolkit