Michael David-Week 5, Assignment 1: Interview

Michael David-Week 5, Assignment 1: Interview

Strategic Communication

Interview with Dan Gushue, vice president of lending for First Entertainment Credit Union regarding strategic communication:

Briefing:

Strategic communication can be defined as communication that is aligned with the long term strategic goals of an organization.  For strategic communication to be successful, it must involve the CEO and upper management.  S.C. must be designed to engage the intended audience as well as develop radar to help the organization deal with upcoming changes and challenges.  An example of how strategic communication plays a vital role in the success of an organization was during the oil spill in Valdez when the Exxon Corporation was slow to publically respond to the spill.  Proper planning and implementation of strategic communication would have better prepared the company to discuss the accident in the press.

Interview:

1.     Can you discuss the plan that you are currently involved in that utilizes the fundamental aspects of strategic communication for First Entertainment CU?

“Firstent does not have a strategic communication plan. Our communications from senior management usually start as a group discussion with all of the senior management team in the room.  A group consensus is achieved, including the CEO, and the results are communicated through various delivery channels to ensure the message finds the right people.”

2.     Please provide an example where the credit union was well prepared to handle a potentially damaging situation by a S.C. plan that was already in place.

“This happens every day. In order to react in an evolving marketplace, quick and accurate communication is essential to keeping pace with emerging threats.  For example, when the Fed meets and Chairman Bernake comments on possible Fed actions, the entire financial market reacts almost instantaneously. As a financial institution, we need to communicate shifts in business direction effectively, or be at a competitive disadvantage.”

3.     To be effective, strategic communication must change with the industry and the companies that use them.  Can you discuss a way that First Entertainment’s S.C. had to change to accommodate changes in the industry?

“Consumer preferences change rapidly, as do externalities such as interest rates and political/regulatory factors.  Firstent holds senior management meetings at least bi-weekly, board meetings monthly, and department meetings weekly.  The goal of these meetings is to keep the information flow active, and hopefully ahead of any anticipated events on the horizon that could affect our business model.”

4.     Can you provide an example of when S.C. failed because it was outdated or failed to meet the problem?

“I can’t think of any such examples. Sorry.”

5.     Can you provide an example of when S.C. increased the credibility of First Entertainment CU?

“Yes, in 2012 there was a popular movement among bank customers called “Bank Transfer Day”. On this day (and as a trend through most of 2012) consumers closed their bank accounts to move their money to credit unions and small, community banks.  Firstent was aware of this trend early, and was able to communicate an effective plan to capitalize on this movement to all layers of the institution.”

6.     Good S.C. can also help a corporation increase cohesiveness with employees. How has First Entertainment’s S.C. help to bond with your employees.

“When communication from the senior management team reaches the front-line staff with clear and accurate information, employees feel empowered, confident, and generally trust management more due to the transparency provide by clear communications from leadership. Firstent struggles with this. Our communications with front-line staff is often filtered through multiple levels, rendering the message to whatever poetic liberties the middleman may have added. Further, in my experience, there has to be a free information flow from staff to Sr. Management as well. One of the biggest challenges I face when trying to open communication channels is he one-way nature of communication from management to staff. It is difficult to obtain clear, honest, and relevant feedback from staff, which fears retaliation.”

7.     There is risk in change. Can you provide an example of when First Entertainment CU changed a policy, procedure or business model that could have been detrimental without effective S.C. in place?

“This is another everyday occurrence for Firstent.  Loan and savings rates can change on a daily basis, and if the changes were not effectively communicated the institution would suffer significant consequences, including financial and reputational. Most of the large changes we experience at the credit union typically get communicated well, simply because we have relatively few employees compared to large banks, such that interested parties are usually involved hands-on with change.”

Interview analysis:

This is a great example of how effective communication moves among the organization chart. As Mr. Gushue stated, the communication starts at the top. While he didn’t realize that they are probably engaged in strategic communication, it is clear from his interview that the company does have in place, long term communication goals that are consistent with the business goals of the credit union. He mentioned that they engage in measures on a daily basis to adapt and overcome the situations resulting from lending. Lending comprises the bulk of the business as they offer attractive lending programs for homeowners and auto buyers. The credit union holds frequent meetings to gauge consumer reactions to the marketing plan and they also monitor the communication they send out to members and the perspective members. He mentions that FECU actively monitors the flow of communication which could be used to plan marketing or prevent problems.

About Dan Gushue:

Dan Gushue is an accomplished lending professional with years of expertise in the lending industry.  Dan has held various positions in senior management, credit, and business development.  Prior to joining First Entertainment Credit Union, Dan served as Vice President of Commercial Lending for Lockheed Federal Credit Union in Burbank, California where he managed and grew a commercial mortgage loan and SBA portfolio of 360 million dollars, directed a sales and underwriting team, and served as department head of the commercial lending unit.  Prior to Lockheed FCU, Dan worked as the Lending Manager of Telesis Community Credit Union in Chatsworth, California where he ran several facets of the business including residential real estate, commercial real estate, SBA, and consumer lending.  Most recently Dan worked for Washington Mutual in Chicago, Illinois to establish a commercial lending presence in the Midwest.  In 2007, Dan’s Chicago team was recognized as Washington Mutual’s top producing commercial loan team in the Midwest. Dan received his Bachelor’s Degree in Business Administration with dual options in Finance and Real Estate from California State University, Northridge.  He is an active member of the California Credit Union League, ICSC, NAIOP, and he holds a California Real Estate Brokers License.  He also volunteers his time to several community organizations.

About First Entertainment Credit Union:

First Entertainment Credit Union was founded in 1967. Today FECU employs over 150 employees in several locations across Southern California and has assets over $800 million.  FECU caters to employees and corporations in the entertainment and they serve approximately 60,000 members.

References:

First Entertainment Credit Union (2012). General format. Retrieved from http://www.firstent.org

Argenti, P., Howell, R. Beck, K. (2005) The Strategic Communication Imperative, MIT Sloan Review, 46(3), pp. 83-89.