MADISON, Wis. (6/25/08)--Credit unions can learn how to optimize their operations through people with a new report from the Filene Research Institute. Filene recently held a colloquium at Loyola University in Chicago to examine the roles that compensation, human resource management and organizational development play in a credit union’s ability to create a culture of excellence that engages in exceeding members’ expectations. A report on the colloquium, “Building a Culture of Credit Union Excellence,” is available and features presentations by Paul Davis, president, Scanlon Leadership Network, about his Scanlon Plan. The plan aims to cut the worker in on the adventure, decisions and profits of increased production, and help management tap the ingenuity of employees as a means of improving production.
“The Scanlon Plan is one truly big idea that stands out,” said Denise Gabel, Filene chief innovation officer. “Employee participation, management and labor cooperation, collaborative problem-solving, teamwork and trust are all part of the elusive formula to overall organizational success.” Dow Scott, professor of human resources, Loyola University, and president of Performance Development International, argues that based on the Scanlon plan, an organization must meet the needs of three groups. He also describes the relationship between a culture of excellence and innovation. The report details a case study of Watermark CU, Seattle, which used the Scanlon process and is building on W. Edwards Deming’s principles to drive growth and generate revenue. Charles Cockburn, Watermark CU CEO, describes the changes the credit union made by eliminating standard incentives like employee-of-the-month awards and individual sales incentives. He also shares his gain-sharing formula, which uses a ratio of operating expense to gross income to measure increases in productivity. The plan develops baselines over three-year periods, creates pools of monies and attaches percentages are attached for payouts.