MADISON, Wis. (3/9/09)--CUNA Mutual Group initiated wide-ranging changes as part of a company reorganization in 2005 that now leave it in good shape to meet whatever challenges lie ahead, Jeff Post, CUNA Mutual CEO, told attendees at an information technology conference in Madison, Wis., last week. In 2007, CUNA Mutual posted record net income of $184 million on revenue of $2.8 billion (The Capital Times & Wisconsin State Journal
March 5). The housing and mortgage industry collapse in 2008, along with the subsequent credit crisis and stock market declines, resulted in the company posting a $148 million loss in net income last year. However, the company, as a result of the changes it made over the past three years, weathered the economic turmoil in 2008 and remains ready for the future, Post said at the conference. In 2008, CUNA Mutual had total revenue of $2.9 billion, an operating gain of $150.7 million, and operating revenue growth of 6.8%, Phil Tschudy, CUNA Mutual media relations manager, told News Now
. Post said in 2006 the new CUNA Mutual is “developing a performance-based culture” by assembling experienced, world-class senior leaders (News Now
June 27, 2006). The company's foundational initiatives--corporate governance, investments, sales distribution and back-office transformation--reshaped its products, services and operations. That resulted in a company that is easier to do business with; is more efficient and effective; which lowers credit unions’ costs; has stronger customer and back-office service; and requires higher performance standards for all employees, Post said in 2006. Among the elements in the three-year plan were:
* A new leadership team leading improved decision-making and priority-setting processes; * Establishment of a single point-of-sales contact for credit unions; * A 90-basis point improvement in investment performance in the company's general account, and investment performance improvement in credit union employee and member products; * The building of a new customer service center with expanded coverage, new technologies and higher service standards; and * A new model for the company's internal services.