Through the Looking Glass, Part 2

STRATEGIZING

In an effort to try and clinch new business, President Wiggington and his “executive” staff (a misnomer if ever there was one) are considering several new options that could, in their opinion, potentially raise new business. These include:

• Opening the main branch located in South Pasadena, on Saturdays.
• Easing the requirements qualifying members for loans.
• Giving new members $70 to $80 to deposit into their newly opened savings account.
• Opening a checking account for members previously referred to ChexSystems but who have not sustained an adverse referral in more than two years. 
• Amending the requirements qualifying an applicant for membership to Priority One.

The suggestion to open the main branch on Saturdays may have been a good idea 2007, 2008, 2009, and in 2010, but in 2012, the idea is more than a little stale dated and will likely, if implemented, crash and burn like so many of the other, not so brilliant endeavors undertaken by and under President Wiggington. The South Pasadena location is now widely known for its depressing environment and unhappy and unhelpful staff. Members who once proudly referred to the location as “home” now often avoid visiting the branch all together.

Evidently, President Wiggington has forgotten about the pitfalls of subprime lending. His first mistake was to take the advice of CLO, Cindy Garvin and extend the timeframe a member has to fund a loan from 30 to 60 days (please refer to our previous post). As we’ve previously pointed out, the President’s decision-making abilities are heavily tainted by desperation.

The proposal to deposit $70 to $80 into newly opened savings account will further undercut the credit union’s ability to reap a profit. They currently are floundering to clinch new business and are experiencing problems retaining existent business. Furthermore, their product portfolio is failing to attract the member interest. The credit union’s implementation of monthly sales quotas is failing to achieve its intent and amidst declining sales, someone at Priority One has been inspired to suggest depositing money into newly opened savings accounts. More evidence that there is a gross inability to exercise common sense amongst the credit union’s chronically deficient, management sector.

Qualifying members who have previously been referred to ChexSystems and who have made no effort to resolve the adverse reference is foolish and risky. The President is again throwing caution to the wind and hoping that through sheer luck, members who were formerly referred to ChexSystems will somehow garner the discipline to manage their Priority One checking accounts in a responsible manner.

When Cindy Garvin was hired in August 2011, Mr. Wiggington made certain that all employees were informed of her expertise in consumer and mortgage loan funding, marketing and advertising, and business development. Thus far, Ms. Garvin’s few ideas have like those of her predecessor, Beatrice Walker, teetered and none has yet to achieve any notable record of success. Recently, Ms. Garvin suggested amending membership requirements. Under her plan, applicant’s who contribute to a specific charity, would qualify for membership. The idea is hardly novel and one Ms. Garvin plagiarized from her former employer, Clearpath Federal Credit Union.  

Ms. Garvin, like President Wiggington, seems incapable of comprehending the impediments facing Priority One Credit Union. As we’ve mentioned time and time again since January 2009, a key obstacle undermining the credit union’s ability to grow and prosper is the failure by President Wiggington, his executive staff, AVP’s, and Branch Managers, to convert non-active members into active participants of the credit union and recipients of the services and  products it offers. At Priority One little effort is exerted to tap into this large undeveloped sector because President Wiggington is incapable of understanding that real growth cannot be achieved through quick fixes or without exacting the time to build relations with members.

As reported in our previous post, in February, Ms. Garvin and AVP of Sales and Business Development, Joseph Garcia, ordered that staff begin calling members on Wednesday evenings and Saturday mornings, for the purpose of cross-selling products. Ms. Garvin, Mr. Garcia and President Wiggington decided to target members who first opened accounts in 1995 but who have never acquired other products or services offered by the credit union. Thus far, all efforts to induct these members have failed, quite miserably. In the interim, the officers also discovered that as a result of the credit union’s lackadaisical attitude towards this sector, these members have little if any interest in the products offered by the credit union. Its literally a case of stagnation resulting from the executive’s sector inability to comprehend the importance of building relationships with their members.

Being a creature of bad habits, in April, President Wiggington’s officers decided to focus again, on acquiring new members. As the President should have learned from the credit union’s November 2011 and December 2011, production reports, opening only new savings accounts may increase capital but it doesn’t produce profit unless members open checking accounts and obtain financial products which generate interest which translates into profit.

Another impediment to the credit union is in the gross inexperience of AVP of Sales and Business Development, Joseph Garcia. His ineptitude, lack of knowledge and lack of education along with his bad temper and his threats to issue written warnings and/or terminate employees who fail to meet their assigned goals, are further exacerbating the already brittle and deteriorating state of employee morale. It is quite clear that both Ms. Garvin and Mr. Garcia are devoid of the imagination, patience, and knowledge of Priority One’s marketplace, to implement anything which might help dredge Priority One out of its financial rut. 

SCHEMES

In mid-April, President Wiggington disclosed that the Burbank branch will as stated previously, close its doors on May 31, 2012. He also revealed that the staff assigned to Burbank and the newly opened, Santa Clarita branch, are failing to meet their assigned monthly goals. The always verbose President also revealed that he may have to lay-off the entire staff currently assigned to the Burbank office along with some of the staff assigned to the recently opened Santa Clarita location due to their failure to achieve their assigned goals.

Amidst the ray, the also verbose AVP of Region 3, Sylvia Perez, has stated that in her opinion, she will probably be reassigned to the Santa Clarita branch. Ms. Perez’s statement is pure conjecture, at least at present. She has admitted that neither President Wiggington or Employee Development Director, Robert West, have advised her if her employment is to continue. With the scheduled closure of the Burbank office, the credit union hardly requires the assistance of an AVP to oversee the very small branches in Van Nuys and Santa Clarita. Furthermore, over the past two years, Mrs. Perez’s role as an AVP have primarily required that she act as a Branch Manager and FSR, two positions hardly justifying continuation of her hefty salary.

Also rather conspicuously, since 2007, Mrs. Perez has been assigned to the Burbank branch and at no time during the past five years, has that office performed on anything other than a subpar level. Mrs. Perez certainly has had more than sufficient time to prove her competency. In sharp contrast to her lackluster performance while at Burbank, the Van Nuys branch under management of Branch Manager, Cecilia Peryera, has prospered, with employees achieving their assigned goals. The evidence shows that Mrs. Perez lacks the competency which could have transformed the Burbank office into a highly productive and lucrative branch.

In late 2011 and early 2012, former Manager of Lending, Joseph Garcia, began a personal campaign promoting his abilities and asserting that through a well-conceived plan, he could actually reverse the obstacles impeding Priority One’s ability to acquire new business and create real and viable profit. President Wiggington took the bait and in February promoted the unaccomplished and bad-tempered Mr. Garcia, to the newly created position of AVP of Sales and Business Development.

In February, Mr. Garcia and CLO, Cindy Garvin, implemented mandatory overtime, forcing employees to remain at work until 7 p.m., each and every Wednesday, and working on alternating Saturdays. During overtime and as reported previously, employees are required to call members at their homes and invite them to obtain financial products offered by the credit union.

By March, it became more than a little evident that these latest scheme is failing to capture member interest. In an effort to motivate employees, Mr. Garcia and at times, Ms. Garvin, began conducting surprise visits to branches, in an effort to monitor employee activity and issue reminders that every employee is expected to reach their assigned monthly goals.

By early April, Mr. Garcia began declaring that if goals aren't met, the credit union may be forced to merge, employees will be issued written warnings, and/or, employees may be laid-off.

Understandably, the results of Mr. Garcia’s aggressive efforts have alienated staff who are complaining about his incessant harping and excessive tactics. The problem plaguing Mr. Garcia’s “efforts” is quite simply that he is unqualified to serve in an AVP capacity and has never proven that he is able to create innovative strategical planning that might hope to capture member interest in the few products offered by the waning credit union. If his stint as Manager of the Consumer Loan Department is an indicator of his abilities and of the future, then you can expect Mr. Garcia to fail again, just as he did in all his previous capacities.

To be fair, business at the Burbank branch has been in decline for over four years, not because members lost interest in the location or because staff is incapable of cross-selling products and services but because AVP, Sylvia Perez, is an incompetent manager. 

Following her appointment to AVP on January 1 2007, Mrs. Perez relocated to the Burbank branch after having served for several years as branch manager of the Van Nuys office. 

Within a few weeks following her transfer, a new branch manager was hired to oversee operations of the Van Nuys office and almost immediately, he discovered that Mrs. Perez's former staff had never been taught to count money compliant with state-mandated banking standards or to comply with security measures designed to reduce and eliminate the incidences of monetary losses. The discoveries caused Mrs. Perez to document fraudulent accusations against the new branch manager who she successfully terminated with the assistance of then AVP of Operations, Rodger Smock.

For years, Mrs. Perez has publicly proclaimed her wonderful skills in business development and publicly shamed her staff because according to her, none possess her abilities to sell the credit union's financial products and services. And though the President embraced Mrs. Perez's statements at face value and without ever demanding evidence to support her self-exalting proclamations. 

Recently, this all changed with the advent of monthly sales quotas assigned to every single employee. Records show that at the end of February 2012, Mrs. Perez, the self-proclaimed business development crackerjacket, failed to meet her monthly assigned sales quota. AVP, Joseph Garcia, issued a mandated warning advising her that she must meet her quota by the end of March or suffer further disciplinary action including termination. 

Upset, she returned to Burbank and complained to her staff that she was being singled out and treated unfairly by Mr. Garcia. What we find peculiar is that her monthly quota is $150,000, the same amount assigned to most other employees yet unlike other staff members, she has suddenly most her mojo and is no longer able to produce the immense levels of new business she boasted about for many years, She has also complained that her "friend" and  long-time ally, President Wiggington, is not responding to her emails or voicemails left at his office and company cellular. 

At the end of March 2012, Mrs. Perez again failed to meet her quota and was issued yet another warning by Mr. Garcia but unlike all other employees, she was not terminated and instead asked to try and attain her quota by the end of April 2012. Don't expect Mrs. Perez to achieve her quotas. Her years of boasting and even shaming her staff who she said lacked her sales acumen are over. Who could ever have imagined that when required to provide evidence of her accomplished monthly sales that Mrs. Perez would be found out to have been a liar and exaggerator? 

But the Burbank branch is not the only location failing to meet its goals. Not-so-surprisingly, South Pasadena is fairing poorly and is now known for it's depressing work environment and rude and unhelpful staff. This is also the home of the now infamous Collection Department, who have become notorious for their abusive treatment of members.

Alex Suarez, the recently appointed Supervisor of Collections, is best known for her abusive and disparaging treatment of members and recently revealed South Pasadena may begin opening on Saturdays. She has said that opening the branch on weekends will provide Priority One with a window of opportunity to clench new business. Unfortunately for Ms. Suarez, her conclusions are more than a little skewed.  The credit union appears the last to realize that closure of three branches in less than a two year period and a fourth which is scheduled to close, has created a negative and indelible impression that Priority One is a failing financially. Then again, what other conclusion could one come to? The result has been increased account closures and rumors that Priority is preparing to close down. It may never have occurred to President Wiggington that closing several branches over a short period of time could impact the credit union negatively and even impede their ability to attract new business. As we've often pointed out, the President is immovably oblivious to the reasons why Priority One is a credit union in rapid decline. 

In January 2011, then COO, Beatrice Walker, promoted South Pasadena Branch Manager to AVP and appointed her management of the Riverside branch and the Call Center which had been under supervision of Ms. Walker's former confidant, Joseph Garcia. 

The decision to promote Mrs. Pleitez had absolutely nothing to do with competency because Mrs. Pleitez is known to be lazy, irresponsible and a chronic policy-breaker. She was promoted because Ms. Walker and Mr. Garcia had a falling out. Not only did their one-year friendship come to an abrupt end in 2010, but Mr. Garcia informed co-workers that he knew that Ms. Walker was  seeking his termination. What's more, when Mrs. Pleitez was promoted to AVP, Mr. Garcia complained that in 2010, Ms. Walker had promised to promote him to the post of AVP and with that, to grant him a heft increase in salary. 

Ms. Walker is evidently emotionally so undisciplined that she can't refrain from exacting vengeance on whoever offends her sensibilities, even from the likes of someone like Joseph Garcia. But Mr. Garcia isn't without his own devices and in early 2011, he called the former Valencia Branch Manager, the same officer Ms. Walker is alleged to have stalked, and asked her to help him formulate an excuse he could use to request a medical leave of absence. The former Branch Manager assisted him and Mr. Garcia fled the credit union in an effort to escape Ms. Walker's planned reprisal. 

However, Mrs. Pleitez promotion to AVP was short-lived. Though she retained her title of AVP, in February she was stripped of her title of supervisor over the Call Center and authority over the Member Services and Teller departments. Mrs. Pleitez is now required to monitor incoming calls to the Call Center and in assisting her supervisor, Yvonne Boutte, in running the Member Services Department. To date, Mrs. Pleitez has yet to visit a single Select Employer Group or postal facility. She remains in her small and constricted in the South Pasadena branch. So has Mrs. Pleitez been reduced to the capacity of a glorified Financial Services Representative, that of Call Center Supervisor  or Mrs. Boutte's valet? One thing is certain, the continuous juggling of titles, positions and responsibilities is hardly an example of the President's so-called efforts to create a bigger, better and more efficient credit union. 

FIRED AND HIRED

When any business is struggling financially, the one strategy that is not usually guaranteed to reverse financial losses is to fire staff and then rehire their replacements. Since early 2010, the credit union has used the excuse it must implement lay-offs because it cannot afford to continue paying certain salaries. It might have been believable had they not replaced many of the employees who were terminated. Replacement employees have often been hired on a part-time basis, reducing the amount the credit union has to pay for their services and eliminating the payment of all benefits. 

Starting on February 2, 2012, the President has authorized the hiring of an Internal Auditor, two collection representatives, one new loan officer and one new loan processor. It's peculiar that despite closing three branches and preparing to close a fourth that Priority One is hiring more staff. What's more, the Human Resources Department which was for years staffed by only one person now requires a staff of three people- Rodger Smock, Robert West and Esmeralda Sandoval. 

What's more, despite her polarizing personality and lukewarm performance, the President has expanded the authority of Yvonne Boutte and along with her added responsibilities, increased her salary. 

ONCE UPON A TIME

In 2009, then COO, Beatrice Walker, informed the President that if you wish to drive unwanted employees out of the credit union, then assign them to work out of branches located far from their homes.  Ms. Walker also taught the President and other managers that if the company lays-off personnel off, they can replace them in six-months commensurate with California state law. According to Ms. Walker, hiring replacements after six-months precludes laid-off employees from being able to sue the credit union. 

In 2011, President Wiggington and then Consumer Loan Manager, Joseph Garcia, ordered reassignment of a South Pasadena Loan Processor to work out of the credit union's Los Angeles branch despite the fact the processor worked just a few blocks from the credit union. The transfer was allegedly to be temporary and intended to help AVP, Lynnette Fortson, whose branch was allegedly short-staffed. However, after several months it became apparent that the reassignment was not temporary. 

Frustrated that the loan processor did not resign, the President ordered the loan processor to be laid-off and using the excuse her position was being phased out. The President also informed Mr. Garcia that in January 2012, he could begin searching for a replacement for the loan processor. 

Though the Loan Processor was told the transfer was temporary, it became a permanent move. Later that same year, President Wiggington ordered that the employee be laid-off. For years, the President complained rather hypocritically, that the Loan Processor was the source of gossip and while assigned to the Los Angeles branch, the employee allegedly made certain adverse statements about President Wiggington and Mr. Garcia. It was then that President Wiggington ordered her ouster. During her exit interview she was informed that the credit union was performing poorly and could not afford to continue her employment. After being laid-off, the employee called Board of Directors Chairperson, Diedra Harris-Brooks, to complaint about her termination. The Board Chairperson assured her she would look into the matter and even stated that she “might” be able to reinstate her employment in two to three months.

This past February, while visiting the South Pasadena branch, the former Loan Processor noticed a new employee working in the Loan Department. She asked if the employee had been recently hired and in what capacity. She was promptly informed that the new employee had been hired to process consumer loans.

Stunned that she hadn't been recalled to work, the former Loan Processor called Board Chair, Diedra Harris-Brooks, who told her that she would not only look into the situation but promised that if possible, would do everything to ensure the former employee was reinstated. As one could predict, the dishonest Mrs. Harris-Brooks did absolutely nothing and instead called the President and told him to bring an end to the situation. 

The President called the former employee and told her that the reasons for her termination were legitimate and that the person she saw in the Loan Department was not a loan processor. Actually, that was completely untrue because the employee processes new loan applications. The President also assured her that if a new position becomes available, he would recall the employee to work. He has yet to call. Don't expect the former loan processor to ever be recalled. 

REINVENTING THE WHEEL

On Thursday, March 22, 2012, recently appointed Manager of Member Services and the Teller Department,f Yvonne Boutte, went on an exploratory trek accompanied by AVP, Gema Pleitez, and Assistant South Pasadena Branch Manager, Virginia Contreras, and Jennifer Preciado, to allegedly discover how other credit unions do business in a quest to try and reverse the effects of President Wiggington's horrendous business decisions. 

The problem with the excursion that all four women are horrendous and caustic personalties at the credit union who are known for being haughty and rude to employees. All also are known to be rude to members and unwilling to respond to member complaints and concerns. And though Human Resources has received numerous complaints about all four women, the President has appointed them to create strategies that increase new business and heal morale problems. 

Mrs. Boutte and Mrs. Pleitez are known for their condescending treatment of employees. Mrs. Pleitez has spent years refusing to speak to members who request her assistance. She is also known to spend hours shopping on the Internet from the comfort of her desk and having her purchases delivered to the South Pasadena branch. In the weeks after January 2011, following her promotion to AVP, Mrs. Pleitez was known to visit the credit union's Accounting Department and loudly refuse to carryout certain procedures which she found beneath her, often proclaiming, "I don't do that. I'm an AVP!"

Long time employee and friend of Rodger Smock, Virginia Contreras, has served as Assistant Branch Manager in South Pasadena, however, she is best known for micromanaging employees and speaking to them rudely and publicly  ridiculing them. Though abrasive, curt, and ill-mannered, she is knowledgeable about Member Services Department procedures. She certainly is more knowledgeable than either Mrs. Pleitez and Mrs. Boutte. Unfortunately, her caustic personality has impeded her upward mobility. It hasn't helped that while temporarily assigned to the Burbank branch, she has openly criticized Mrs. Pletiez who she describes as lazy and ineffective. 

Unfortunately for Miss Contreras, Mrs. Boutte has already targeted her for future termination. It isn't a secret at the main branch and it'll be interesting to see how much longer Mrs. Contreras remains employed by Priority One. 

What we find most interesting is that none of the women remembers that the credit union has a policy in place governing confidentiality and forbidding slander. 

OFFERING NOTHING

The credit union's dividends, as shown above, aren't impressive. Yet, the credit union is using these to promote new membership. Where's the motivation that would inspire a person to want to become a member of Priority One Credit Union? Could it be that this is a reason why the credit union's asset value has declined by more than $24 million since January 1, 2007? 

CLO, Cindy Garvin has informed employees that they "must do your part bring in new business." Maybe Ms. Garvin should have said, “Everyone has to help clean up the mess created by Charles R. Wiggington, Sr.” 

The problem is not employees but the President, the horrendous board and a long line of incompetent executives, none of who has to date, contributed anything to resolve any of the debacles created by the President. The President is too obtuse to comprehend that he has to acquire an understanding of the credit union's demographically diverse marketplaces and create products and services that meet the needs and wants of the people in those communities. 

Though the credit union was founded in 1926 (not 1929) by postal carriers, at no time has President Wiggington ever implemented a single program that reaches out to this large and influential sector. If the President has proven anything, it's that he is oblivious to the needs of the credit union's members or expressing gratitude for their long patronage of the credit union.

From the date he was first appointed, President Wiggington's focus has been self. The power hungry oligarch's focus on his personal indulgences has caused millions of dollars in losses and the closure of three branches with a fourth branch slated to close either in May or June of this year. 

His grandiose aspirations and boastings that he would take the credit union to new heights evidently backfired. What's more, he's provoked the filing of three lawsuits. What he has achieved is a reputation for indulging in wasteful spending, gossip, backstabbing, and violating policies and laws. In the end, his behaviors, mistakes, fumbling, and horrendous personal behaviors have placed Priority One exactly where it should be. 

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