6 minutes
Whether your credit union is rolling out a new financial service or constructing a new facility, two primary elements are required: creativity and delivery. Because both must be present at the same high level to ensure success, having the right people on board and tight management are required.
Toward that end, more credit unions are adding project managers to their staffs to keep pace with a continually evolving environment and to guide staff and business partners working together to deliver projects on time, on budget and to the satisfaction of members and management.
Each project is different and requires different levels of PM engagement and knowledge. Project management for new branch construction, for example, requires experience in the areas of building codes, contracts, technology integration, and hundreds of other areas. A credit union PM learning the ropes of branch construction could work with project managers from the design firm and contractor if the CU has a strong, trusted relationship with those business partners. To avoid the risk of cost overruns, extended schedules, business interruption, and other frustrations sometimes associated with working on multiple branches or a new headquarters, some credit unions contract with an outside project manager.
PMs must ensure that important questions are answered from planning through completion:
Setting the stage: Does the project have buy-in from key staff?
Team members don’t always agree with change, but they may not make their feelings clear during design. At credit unions working toward branch transformation, managers may be opposed to the transition from teller and MSR to universal agent positions and from individual desk assignments to shared hoteling workspaces. Veiled opposition can cause a new concept to fail. For example, Blue Shore Financial in Vancouver, British Columbia, implemented a new branch concept at a location that had not grown deposits for three years. There was no growth for two months after opening, a disheartening result after the big investment in effort and money. A close study found that the branch manager did not support the change and expected it to fail. After the manager was replaced, the branch began growing at a $1 million per month clip. Today, the branch holds more than $400 million in deposits, and the concept has been rolled out to all branches. The PM must ensure that frontline staff and managers are on the design team—and on board with branch plans.
Align expectations: Are project expectations clear for all participants at every step?
Are they in writing? Does everyone agree? Lack of alignment accounts for about half of all project management problems. From the start, expectations must be clear. While participants all have good intentions, they may have different experiences on projects of similar scope. To ensure alignment, all contracts must clearly state project expectations and cross-reference to all other contracts and internal staff work. To aid in this alignment, the “responsibility matrix” is a form that designates who is responsible for each project element. It lists the tasks at the left and provides columns to the right to list consultants, contractors, vendors, and internal staff or departments. A similar form can also be used at the implementation level. For cabling, as just one example, the matrix lists who locates the cable at both ends, coordinates with the building, cuts the hole, provides the conduit, provides the box, provides the pull wire, installs the wire, adds the connectors, installs the hardware and tests the system.
It is worth the time to have all team members go through the project together in detail to ensure agreement. The project schedule is a great way to combine coordination with a timetable. The master schedule overlays all consultant, contractor, vendor and credit union tasks on one sheet so all can see the impact each step has on other team members and staff. The master schedule is then broken down into small project segments to capture and track every activity. During construction, this tool is used to schedule ordering of materials, parts, equipment, services and alignment with jurisdiction requirements. The master schedule is typically the responsibility of the design consultant through completion of documents and then the contractor through project completion. Ultimately, the project schedule is the responsibility of the credit union’s PM, who must make certain everyone communicates fully every step of the way.
Team dynamics: Is the team the right fit for the project and each other?
Firms are made up of individuals, and the specific people assigned to the team can make all the difference. Firm interviews need to include the line staff who will be assigned to the project, the architectural and construction PMs and the on-site supervisors. The interview needs to cover their experience on similar projects, references, communication skills and history with the design consultant, vendors and jurisdiction. Similar questions need to be asked of vendors.
While I have been involved in many successful projects, a few have been temporarily derailed by a difficult team member or friction between members. Every project has some bumps. In selecting consultants, contractors and vendors, decide who you want to be with when you go over these bumps.
Managing to completion: Is everyone on board with meeting and reporting schedules?
Weekly meetings are required from conceptualization to operation so that issues can be quickly identified and corrected. Hundreds of tiny steps must align in a construction project. Each participant has its own priorities. Meetings can help align and realign efforts while maintaining the schedule, budgets, and relationships. Managing meetings and reporting is the ultimate responsibility of the credit union PM to ensure that the project stays on track and on budget and to render reports for senior management and board review.
For example, a metal plate required for the installation of some ATMs must be set in concrete. If the vendor has not coordinated with the contractor or directions are not located on the drawings, the concrete might need to be jack-hammered out and repoured. This eventuality can be prevented through detailed meetings with all parties. Each participant must confirm meeting notes or make corrections within two business days.
Many PM resources for forms, programs and processes are available online or from consulting partners. Industry professionals offer different PM solutions such as design/build, design/bid/build, and independent project management/owner representation. Selecting the right solution for your credit union will be based on project scope, internal capabilities, experience with consultants, and risk management. When the doors of that new branch open, we want to deliver on our promise to members and staff and the entire project team to enjoy mutual success.
Paul Seibert, CMC, is principal/financial and retail design for CUES Supplier member NELSON, Seattle.
