STOCKHOLM, Sweden–What can credit union leaders learn from Michelin-starred restaurants? There are at least five things on the menu, according to two people.

The Michelin Guide—developed by the tire company to encourage people to drive more and wear out those tires—gives its highest rating of three stars to those restaurants it has judged to offer “exceptional cuisine worthy of a special journey.”

The question posed by two people during the World Council of Credit Unions’ World CU Conference  was, “What can a credit union do to make itself worthy of a special journey?”

Bringing to the table some answers to that question were Mark Meyer, CEO of the Filene Research Institute, and Courtney Arnold, community development director with Filene. Arnold is also a foodie and patron of Michelin-starred restaurants whenever possible.

Arnold said she has come to recognize that the best restaurants create “special memories” as a result of their abilities to treat their clients very well from the moment they walk in the door.

Five Criteria

Meyer explained there are five universal criteria for Michelin’s ratings:

• Quality of the ingredients
• Harmony of the flavors
• Mastery of Techniques
• Personality of the chef as expressed through their cuisine
• Consistency both across the entire menu and over time.

Meyer and Arnold took their audience through each of the five Michelin restaurant criteria and drew parallels to credit unions.

Citing Arnold’s comment on how certain restaurants make a person feel, Meyer asked, “Imagine for a moment that is how people thought about your credit union and their credit union experience. Is that even possible in financial services? Let’s try to make that so.”

One: Quality of Ingredients

This credit union equivalent to quality ingredients is the product suite and experience, Meyer said.

“How do you take that product and turn it into something bigger?” Meyer asked. “What does this look like? What does this feel like? We live in this inflection point in financial services right now. Ten to 15 years ago the experience would probably be retail, in real life, in the branch and it would be this human connection that we would have together.”
But something has happened over that time, he said. 

“We’ve been Netflixed. We’ve seen the digitization of financial services so that experience now might look and feel a lot different than it did 15 years ago when we talked about experience,” Meyer stated.

Describing the Amazon shopping experience so many consumers have become accustomed to, Meyer asked, “When we start thinking about experience, if we are accustomed to search, it’s click, click, maybe a third click and then delivery. How does your digital onboarding work? Can they join in less than three to five minutes and maybe get a debit card the next day? Or is it click, click, click, click, opt-out, call the call center, and maybe get a debit card in 8-10 days?”

How Do Credit Unions Understand Mx Data.

Meyer noted:

• Credit unions that focus on MX data have substantially more satisfied members.
• Collecting MX data is easier than implementing the changes it might recommend

In reviewing the metrics, as shown at left, Meyer said credit unions have the most opportunity in those categories ranked lower than 50.

He urged CUs to be careful with survey results. 

“We spend too much time asking (members). What they say and what they do are different. Instead, spend time understanding their data. We’ve got to build that muscle of data,” he advised.

Getting Back to Basics

Arnold shared her experience in “getting back to the basics,” noting she worked with credit unions in Wisconsin on onboarding.

“What we actually learned is that the process may not be consistent and it also may not match with what members need and want,” Arnold said. “We have this idea of customization, of collecting real number information as they’re joining our credit unions so that way we can tailor an onboarding process to each individual. That means touch-points that matter to each person instead of saying every single member comes in is exactly the same. They have all the same needs and wants, which we know not to be true.

“But it inevitably allows you to say, ‘OK we have one member coming in for a loan, we have another coming in for deposits, and how might we tailor our products and services to those needs as those individuals are coming in?’” Arnold continued. “It’s really going back to the basics and looking at your processes…and potentially going back to the drawing board.” 

Two: Harmony of Flavors

This is people and culture at a credit union, said Meyer. 

“That really brings us back to this phenomenal experience. What lies at the heart of the Je ne sais quoi of your credit union?” Meyer asked. “More than anything else it is the people, the talent. When you look at where the talent comes from…it does start at the top.”

He noted that over a recent five year period one-third of CUs had CEO turnover, which often leads to staff turnover, which can change the culture of an organization.

“We have to find people who are excited and passionate about mission first and excited to put people’s money to work in their communities,” he said. “We have to understand what got us here won’t get us there, so how are our jobs evolving? Are we making the necessary investments in upskilling? Are we looking at who we are partnering with to recruit talent?”

Retention-Getters

To retain people, Meyer advised”

• Revisit benefit offerings
• Address workplace inequities
• Tackle employee burnout
• Realign corporate social responsibility efforts

“We also have to look at the workplace of the future. An effective hybrid strategy can be part of the winning solution to attract and retain top talent,” he said. “Much of our workforce doesn’t want to be in the workplace every day. So how do we keep everyone aligned?” 

Arnold noted that many younger workers are also looking for professional development opportunities, and that “dollars really matter.”

She urged CU leaders to ensure they’ve created environments in which managers are not “elusive” but available for comfortable conversations that are relevant.

Three Pillars

Meyer said the three pillars of employee engagement that create a loyal, engaged workforce are:

• Transparency
• Trust
• Fair Treatment

He said the key is often effective communication with clarity.

Three: Mastery of Techniques

In credit unions, mastery of techniques is about operational effectiveness, not just efficiency, according to Meyer.

“Effective institutions have a buffer when times are challenging. They continue to operate as business as usual. Those who don’t operate effectively have little margin for error,” he said. 

Meyer cited research showing 20% of credit union leaders say focus is the top barrier they face. 

“Sometimes what holds us back is just the ability to decide what not to do,” he said. “Operational effectiveness is not just about cutting costs. Operational effectiveness is about optimizing the dollars you spend to produce value.”

Four: Personality of the Chef as Expressed Through Their Cuisine

Credit unions express their chef’s personality through brand identity and differentiation, said Meyer.

“We start to think about how do we look and feel different in a fairly crowded financial services marketplace,” he said, pointing out the average consumer has five to seven accounts with different financial services providers. 

“Is there opportunity? I assure you there is an opportunity for us,” he added.

Meyer said when it comes to finding where a credit union fits, the questions to ask include: 

• Who do you serve? How would you describe your core ideal member. What matters to them? Where can you find them? What do they need? What are their realistic options and alternatives?
• What products and services do you offer and how do you offer them? Does what you offer match what your core members need most? What are the barriers or constraints to access?

Five: Consistency Across the Entire Menu and Over Time.

The ultimate questions for credit unions to answer he said, are what are you capable of delivering, what do your members need and how do you meet in the middle?

Just as a restaurant menu must offer consistency over time, there must be consistency across touch-points at a credit union, Meyer shared. 

“To better address member compatibility, focus on who constitutes your ideal membership and who you are as a credit union,” he advised.  

He urged the collection of data around member experience and for CUs to be transparent with that data across the enterprise.