Phenomenal Growth through Strategic Focus
How Frank Berrish Led Visions Credit Union to become a Top 100 CU
By Rory Rowland
Visions Federal Credit Union is a Top 100 CU in E-services. Visions offers 17 of the 22 E-services rated by NCUA.gov. Being a Top 100 CU in the most competitive category, CUs over 150 million dollars in assets, is a testament to Mr. Berrish’s leadership.
Frank Berrish
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There are many CEO’s I admire; Frank Berrish is at the top of that list. Mr. Berrish took over at Visions Credit Union 29 years ago when it was 24 million dollars in assets, and he has helped grow the credit union to over $1.6 billion dollars in assets. Woody Allen says “90% of success is just showing up” and in my humble opinion the other 10% is never leaving. Frank has continued to show up, survived and thrived. Growing a credit union from $24 million to $1.6 billion is an excellent example of a lifetime achievement, but he has also shown the credit union movement how to be more efficient using technology to gain a competitive advantage. |
Because of their heavy focus on of electronic services since the 80’s they out perform their peers in many key categories. Visions success is an example of their strategic focus.
In the mid 80’s the credit union was conducting about 22% of their transactions through electronic means, and now over 88% of all transactions are electronic. In addition Visions leads their peers in a number of key categories, and Mr. Berrish says a big part of that is the use of E-services.
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Visions CU
Sept 2004 |
Peer numbers
Sept. 2004
NCUA.gov |
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Operating Exp. / Gross Income |
33% |
50.3% |
*Net Worth / Total Assets |
13.42% |
10.75% |
*Return On Average Assets |
1.34% |
1.05% |
Net Operating Exp. / Average Assets |
1.49% |
2.16% |
Strategic Focus
Visions Credit Union got it’s start serving IBM employees in Endicott N.Y. With their astonishing growth there is one very important key to their success. Mr. Berrish said “We started to look at using e-services to be more efficient in the early 80’s. We wanted to increase productivity. We have accomplished our goals through a strategic focus.” Mr. Berrish is a big believer in strategic planning, and he says “our annual strategic planning is a key to our success.”
In interviewing Top 100 CEO’s I have found that strategic planning is the key success of their organizations. Not one CEO in the Top 100 of any category accomplished success by mistake. The category they lead in is the category that was discussed in their annual planning session while setting specific targets to measure their success. No one is ever surprised when I call to tell them they are a Top 100 CU. If they are the best in lending it is because they made lending a strategic focus. To be the best in one area, you have to be an expert.
Mr. Berrish said in the 80’s they looked at their transaction growth. He said “If we were growing at that rate, we would need 20 to 30 branches back then. So we looked at how we could be more efficient. That question of efficiency became an important strategic question, and that focus is the foundation of how well we are positioned today.” Visions has been using full function ATM’s to cash checks and now the cost per transaction is approaching $.01. Reducing cost to that level is an example of the cumulative impact of strategic focus.
The next strategic focus is how do they can make business accounts more efficient. Visions community charter has been in place for a number of years. And now they want to streamline their business services. They are working with Diebold to make the process simpler and easier for their business members. Mr. Berrish said the question we are asking is “How we can automate the business accounts?” He continued, “ We feel we have done a good job on the consumer side. Now we want to use that expertise to streamline the commercial accounts.” On the consumer side the credit union has been very successful. They have about 6 million dollars of assets per employee, well above their peers.
Another key to the continued success is going to the Carver model of governance.
Mr. Berrish said, “It is a process that requires patience and time. But once it is in place it allows the Board to focus on the big picture.” In 2005 their goal is to continue to make the Board meeting more than simply a Board meeting, but an opportunity to continue to look forward with a strategic vision. Visions is working with Tecker Consulting and Dean Archer from CUNA to put together a strategic thinking process for their Board.
Mr. Berrish said, “We think it is important to bring in outsiders to look at our credit union and work with our Board to make sure we maintain our strategic focus. The board needs to hear it from someone who does planning for a living. We think that everything we did yesterday was right. But looking to the future is nebulous, foggy and uncertain. We need someone to challenge our thinking, and challenge our focus. It is easy to look at the past, but looking to the future is the challenge of uncertainty.”
Mr. Berrish said “We do lots of membership surveys, to be certain that the new services that we offer benefit the members. The helps us stay member focused at a Board level.”
Mr. Berrish demonstrated his ability to look to the future with this important question for the staff at a recent meeting. Mr. Berrish asked “Is the combustion engine dead? What will the next generation of cars be? Will our collateral values become obsolete? How will the change in energy needs impact our credit union?” Mr Berrish continues to challenge his staff to think in the future tense, and that continues to be a testament to his success as a credit union CEO.
Mr. Berrish’s Key to Credit Union Success
1) Ask important and challenging questions
2) Have a strategic focus
3) Have a vision of the future you wish to create
4) Strategic planning is very important
5) Spend your time in your Board meetings looking forward, not back
6) Be good at something, Visions is good at E-services
7) Stay on to see your efforts compound
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