1. Develop a list of competencies needed by employees to facilitate attainment of credit union strategic goals.
2. Recommend an employee appraisal program to measure identified competencies.
3. What steps should the credit union adopt to achieve employee acceptance of the new compensation program?

Preferred Credit Union in Detroit, Michigan, and AFD Federal Credit Union in South Bend, Indiana, faced critical problems encountered by other credit unions nationwide—the threat of megabanks. With large financial resources, ATM networks, and online banking services, large banks threatened the very existence of smaller, locally owned and managed credit unions. The question faced by these small financial institutions was how to survive.