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Embracing Change
CUES' 2004 chairman enjoys new challenges.

By Diane Franklin

Editor's note: This first appeared in the January 2004 issue of Credit Union Management.

Michelle "Mickey" Wilson has spent her entire professional life embracing new challenges. As a political novice some 30-plus years ago, Wilson decided to try her hand at politics and was elected to two terms as township treasurer in Warren, Ohio. As a newcomer to credit unions, she stepped into a job as executive vice president of what is now called Greater Warren Community Federal Credit Union. A few years later, as CEO of the credit union, she overcame the economic adversity affecting her community to create a more viable and profitable organization. In 1994, in the face of plant closures in Warren and surrounding areas, she took the bold and necessary step of converting the credit union to a community charter.

All these experiences have provided Wilson with a strong list of credentials that will hold her in good stead as CUES' Chairman of the Board for 2004.

Stepping Up

Wilson's credit union career came about as a direct result of her decision to run for township treasurer. It was during this time that she became acquainted with people in the community and at Greater Warren Community FCU (then known as Copperweld Steel Federal Credit Union). A position as executive vice president opened up at the credit union in 1977, and Wilson stepped into the role. "It was a huge title, but at the time there were only seven people," recalls Wilson with bemusement.

In 1984, Wilson was promoted to president/CEO of the CU, which has grown from seven employees to approximately 30 today and has two locations. When she took the leadership position, Wilson realized she had a challenge ahead of her. Growth at the credit union would be difficult, because Warren was in the midst of the nation's "rustbelt." Located in northeastern Ohio, just 20 miles from the Pennsylvania border, Warren was beset by plant closings and population loss as jobs migrated southward. Its current population stands at about 47,000. Nonetheless, under Wilson's leadership, the credit union has experienced solid growth numbers and an impressive turnaround in loan performance.

"When I started as CEO, the credit union had $17 million in assets and 5,000 members, we were only 50 percent loaned out, and 16 percent of loans were delinquent. Now, we have $64 million in assets, 12,000 members, we're 90 percent loaned out with a 0.6 delinquency," Wilson reports.

Turning the delinquency rate around took a major effort, given the depressed economy of the region. "For the last 20 years, we've been helping members get their finances sorted out," Wilson admits. However, she adds that a change in strategy led to a remarkable drop in the delinquency rate over the last two decades.

"This is going to sound sappy, but the way we did it was by becoming the member's friend," Wilson says. "We were of the belief that we weren't dealing with bad members, we were dealing with good members that bad things had happened to."

This strategy is illustrated by the way Greater Warren Community FCU reacted when its main sponsor, a local steel mill, closed its doors just two years ago. The steel mill accounted for only 10 percent of members, but 40 percent of the credit union's loan balance. The mill's closing had the potential for sending the delinquency rate back through the roof, but that didn't happen. "We called every member and gave them a three-month loan extension," she says. "That three months gave us time to work with each member to lower payments to the point they could afford it."

However, Wilson will be the first to admit that the last couple of years have been a major challenge. The credit union has been able to beat expectations, however, because of the community charter conversion it underwent in 1994. No longer dependent on a primary sponsor or a select group of sponsors, Greater Warren Community FCU was able to tie its growth to the community at large.

Wilson points out that taking the CU in this new direction was hardly easy. Initial marketing and advertising campaigns did not garner a tremendous number of new members. "Converting to a community charter is a major challenge," she says. "I'm not sure anyone goes into it knowing what's on the other side."

Eventually, however, the CU's message took hold and membership began to grow. Ten years after the conversion, Greater Warren Community FCU is well known throughout the community, and there is potential for greater growth.

Success Factors

A key to the success of Greater Warren Community FCU is the staff. Somewhat unusual for a credit union, the employees at Greater Warren Community FCU are unionized. They belong to the Office & Professional Employees' International Union. "The credit union was started by union people, so it was a natural thing that the employees at their credit union would belong to a union," Wilson explains.

For the most part, the union relationship is a non-contentious one. "We negotiate a contract every few years," Wilson reports. "There are a couple of frustrating aspects. For instance, I'm not always able to promote a person on merit because of seniority issues, and I'm unable to reward individual excellence. On the other hand, raises are set by the contract, so there is no source of tension there."

Even with the growth and solid loan performance, Greater Warren Community FCU is still on the small side, as far as credit unions go. However, despite its size, Wilson reports that the credit union offers a broad range of services. This represents a major improvement over the last couple of decades. "At the time I started here, we had just introduced share drafts for checking," she says. "Now we do everything. We offer a wide range of loan services. We offer financial planning through our CUSO. We have home banking and home bill pay, which we purchase from a third party. Technology has actually been a great help to us in the last few years. It's something that gives us a level playing field."

Additionally, technology has been a key to membership retention—even allowing Greater Warren Community FCU to maintain members when they move out of the area. "We can retain members no matter where they move throughout the country, or even if they move outside the country, as has been the case with some who are serving in Iraq," Wilson says.

A Busy Life

Despite her busy professional life, Wilson works out regularly and runs five times a week. She enjoys traveling and spending time with her family, which includes a son and a daughter and four granddaughters.

Taking on the role of chairman of the CUES Board will add more to her hectic life, but Wilson sees this as a culmination of the years she has spent in credit union organizations. She has served in a number of organizations, including two terms as director of her state credit union league. However, she puts most of her extra-curricular energy into CUES. She's been a big supporter of the organization ever since she attended her first state council meeting in the mid-1980s.

"It was like finding a home," Wilson says. "Other groups I'm involved with are all there to make credit unions successful. CUES is focused on the executive. CUES is there to make the executive successful, with the view that if the executive is successful, the credit union is, too."

Wilson is now in her third term on the CUES board. She moved up through the ranks, serving as secretary, treasurer and vice chairman before reaching the position of chairman. Indicative of her leadership style, Wilson has no intention of using her new position to micro-manage CUES activities in the coming year. On the contrary, she praises the staff in Madison, Wis., for already having a strong vision for what the organization can do. Her main goal in 2004 is to let the staff do more of the same.

"CUES has done a spectacular job of education by providing conferences, online learning opportunities and products that executives and directors need," Wilson says. "It's hard to know what to improve. The real people moving it forward are the people in Madison. Those of us on the board just try to help let them know what is needed and stay out of their way."

Wilson expects the focus in 2004 to be on helping CUES members help the people in their community. "The buzz word today is 'financial literacy,'" Wilson says. "Those of us in the financial community are searching for ways to help their members—or in the case of banks, their customers—handle their finances better."

CUES is in a unique position to further financial literacy, according to Wilson. "Our mission at CUES is to educate executives and their boards," she says. "Members of CUES, in turn, educate their communities. CUES has a role in helping its members reach out to people—whether it's teaching kids how to balance their first checking accounts or helping older members manage their retirement funds. We can be there to help all throughout the member's life."

Diane Franklin is a free-lance writer based in Florissant, Mo.

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