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The very idea of choosing a vendor to complete tasks for your organization
immediately creates the potential for conflict between where you
are going and where your vendor wants to be. These inherent points
of conflict range from contract and pricing issues to service expectations,
liability and follow-through.
No area can create such a range of conflicts as when choosing a
data processing vendor. The conflicts of ultimate service versus
fixed investment, the need for change versus the pace of technology,
and the conceptual ideals versus the abilities of the end user,
all tend to magnify the differences between a credit union and a
traditional data processor. Therefore, a new model is needed.
For WESCO, it's a reliance on the concepts of credit union equity,
credit union cooperation, and a true partnership between the credit
union's focus and WESCO's technical capabilities.
A Focus On Utilization
The WESCO model begins with the principle that the vendor is
an extension of the credit union staff, with the same underlying
goals, strategic challenges, and focus as credit union professionals.
By always remembering that everyone is vested in the success of
the member service offering-not the sale of software, a purchase
order for more hardware, or a long list of new credit union conversions-WESCO's
focus stays with its investors and their members.
WESCO credit unions learned long ago that patronage is investment,
and that every invoice paid is an investment in better processing,
better service, and new technologies applied to their members' needs.
It is not only the business we did this quarter, or how WESCO services
were used to accomplish credit union ROA goals-it's the long term
guarantee that both the credit union and the vendor are evolving
on the same path with the same goals.
The Value of Equity
Equity should lead to pride. Whether that equity is through investment
in stock, a credit union's reputation based on affiliation, or the
equity built through hard work, this model is designed to create
pride in our solutions for both the vendor and the credit union
client. It depends on participants using WESCO products to their
fullest. WESCO's goal is that every credit union staff member is
a power user and that the goals set in the sales cycle are
met through efficient and effective presentation to every member.
From the receptionist to the CEO, WESCO products are designed to
focus the light of expertise on every credit union staff member.
Be The Best You Can Be
Best practices are not contingent on profitability in the WESCO
model, as they are for many alternative data processors. Safety
and soundness of technical solutions in today's world are becoming
more important to every user and member. Redundancy, security, internal
auditing and compliance with industry standards need to be the
foundation of a data processor's solution, not the results of
success. Often, credit unions settle for best practices according
to what they can afford, not what they should demand. The WESCO
model works with credit unions, examiners, auditors and industry
professionals to ensure that its solutions pass the test. It is
pride in the process that drives WESCO owners and staff members
toward best practices.
First to Implement
WESCO resources are focused on a first-to-implement tactic,
moving all of WESCO's clients to new strategies and offerings.
This is possible through the development of products that are comprehensive,
diverse, and driven through the creative configuration of a standard
product rather than the "mix-n-match" of best-of-breed
solutions. WESCO processes are developed with the total participation
of WESCO clients and their staffs. While credit unions choose the
pace at which they participate, no credit union is left behind due
to access being based on investment or prohibitive pricing. All
credit unions participate in WESCO returns.
As an example, this has allowed WESCO to transition from analog,
to digital, to TCP/IP as a group, where credit unions who wish to
break ground first are no more important than those who are at the
tail end of network projects. It is not about being sold on something
or being able to afford it; it is about what is the best practice
and which technologies will lead to long-term success. It is not
about the size of the credit union or the sophistication of its
product offerings; every credit union is an equal investor in WESCO's
sophistication and technical capabilities, and can market to its
constituents all of the power of WESCO solutions.
The efficiencies gained by adopting strategies in which all credit
unions participate gives the WESCO Management Team a real edge over
companies who are constantly doing at-risk development, then having
to sell the product to their client base. WESCO builds products
according to the needs of its clients- as a consultant, a "buyer"
of technology more than a "seller" of technology. This
is why I often refer to myself as the "CIO" of every credit
union in the WESCO client base and that WESCO's product managers
and service support personnel are part of the staff of every credit
union. WESCO is vested in the implementation of every product and
solution it puts forward.
Return on Investment
The backbone of WESCO's vendor model is the concept that R&D
is a function of credit union investment, not credit union invoice.
Credit unions enjoy the benefits of ownership by providing capital
funding for the research and development of new products and capabilities.
Credit unions earn income on their investment throughout the development
of new WESCO solutions. This shared R&D investment reduces the
risk of new technologies.
During the implementation of these new solutions, WESCO credit
unions benefit again from their investment by avoiding large up-front
invoices for new services. For example, when many credit unions
were spending more than $50,000 up front for home banking solutions,
WESCO credit unions jumped into the Internet marketplace with no
money down and low transaction fees. Both the credit unions and
WESCO were vested in the success of home banking, one member at
a time. As home banking usage grew to 1,000,000 minutes per month
throughout 2001, everyone shared in the success.
Mergers, consolidations, and the theme that data processors must
be big to be successful in today's credit union marketplace, were
the headlines in the last several years. WESCO does not believe
that sheer size, the amount of capital available for investment,
or a stranglehold on the credit union market ensures success for
any vendor, and certainly not for the vendor's credit union clients.
Partnership, shared equity, and mutual goals will win in the end.
This model is about tools being placed in the hands of credit union
staff with a mission to serve their members. The key is that those
tools are owned and directed by the very people with this important
This model is obviously not the only model for success. But to
us the key is that how we act as business people, credit union industry
professionals, and vested credit union members, makes all the difference.
(800) 327-3478 ext 101
This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at firstname.lastname@example.org or 1-800-446-7453.
March 4, 2002
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