Credit Union Strategic Planning Topics

Ahhh, credit union strategic planning topic season. Let’s take off our pessimistic blinders, pull out our beanies and start thinking of the credit union world we want tomorrow. Soon, our credit union will disrupt the local banks. We will put them those evil bankers out of business and take over the world… cooperatively (of course).

If you are looking for quick strategic questions to ask your board at your credit union planning session, you are in the right place.

Credit Union Strategic Planning Topics About Growthstrategic planing for credit union topics

  1. If you had to process 3x your normal loan or member growth volume, how would you?
  2. Where do you want to be in 3 years?
  3. What market trends support that vision?
  4. What client demands support that vision?
  5. What are the tactical plans to support that goal?
  6. What are the known risks?
  7. If you could rebuild the credit union 2.0, what would it look like?
  8. What are the top 10 questions we have about our credit union (analytics based)? What would you do differently if you knew the answer?

Credit Union Strategic Planning Topics for Critical Self-Evaluation

    1. What is the one thing your credit union was worst at this year? What needs to happen to fix it?
    2. What is one thing your credit was best at? How can you double down on it?
    3. What is the single metric that you least like hearing about this year? Why? What can you do to change it?
    4. Where do we use Analytics well?
    5. Are we moving or reacting fast enough in the marketplace?
    6. In each department, what should you start? What should you stop? What should you continue?
    7. What are our best service experience and memories?

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Credit Union Strategic Planning Topics About Culture

  1. What are some examples of living your core values?
  2. What are some examples of failing to live your core values?
  3. If you could change one thing about the credit union, what would it be?
  4. What are the top 3 credit unions we admire and why?
  5. What does the perfect member look like? Where do they hang out? Who do they know?
  6. What makes an ideal board member?
  7. If you were the new CXO and were brought in tomorrow, what were three things you would fix immediately?

Credit Union Strategic Planning Wildcard Questions

  1. If a perfect competitor opened across the street tomorrow, what would they look like?
  2. If we were to rebuild our credit union with no branches, what would it look like?
  3. If the NCUA got merged into the FDIC, what would change?
  4. If your largest SEG went out of business, what would you change?

Any of these credit union strategic planning topics can help you and your board plan for a brighter, warmer future.

Credit Union 2.0 — Credit Union Strategic Planning Facilitators

Kirk Drake and Chris Otey take a unique approach to planning sessions. Their goals are to deal with some of the real issues facing credit unions. These include:

  •                 Who is your ideal member?
  •                 How do we improve board governance?
  •                 How do we get our board to look more like our membership?
  •                 How do we deal with the onslaught of fintechs and technology?
  •                 How do we change our culture to be more like a fintech?

As the author of Credit Union 2.0, head of a large technology CUSO, and founder of CU Wallet, Drake has great insights from both his time working at a credit union through his entrepreneurship and board experience.

As board chair of South Bay Credit Union and former CU Wallet and Fiserv executive, Chris has worked with hundreds of credit unions to help them deal with board governance, CUSOs, and other technology challenges.

Click here to book!

Credit Union 2.0 — Strategic Planning Options

DREAM (Based on the CU2.0 Book)

Credit Unions are under unprecedented attack from all angles. Thousands of fintechs are collectively hurting the bottom line. Regulators are slowing the industry down.

Credit Union 2.0 outlines the DREAM (Differentiation, Repeat and Reinforce, Educate and Excite, Automate and Motivate) methodology that will help your credit union begin the process of digitally engaging your members, building fierce loyalty, and making them feel the credit union difference.

The Credit Union 2.0 movement teaches why we need to change. It emphasizes key case studies from awesome credit unions, lessons learned from other cooperatives, and strategies for creating fierce loyalty.

Some highlights from Credit Union 2.0 include The ultimate first 100 Day Experience, Hacking your CU’s Repeated Mistakes, and Education = Trust | Trust = Sales.

Finally, Credit Union 2.0 will provide an optimistic outline of the credit union of tomorrow. Such a credit union digitally engages members, builds fierce loyalty, scales gracefully, and makes your members feel like they own the place!

PAINT

Kirk Drake, a serial entrepreneur focused on credit union technology and author of CU 2.0, reveals his P.A.I.N.T. strategy you can use to make your credit union more competitive, more creative and more in tune with today’s digital expectations.

If you have struggled with corporate culture, agility, moving faster, or competing with the onslaught of new Fintechs, the P.A.I.N.T. methodology will help your credit union quickly iterate and apply key “Operating System” Strategies to better engage your members.

Take home these 5 tools:

  • Painted Picture
  • Analytics Plan
  • Innovation and Agility Hacks
  • Nimble Algorithms
  • Terminate

Related Content

Credit Union Planning Session Facilitators

Credit Union Planning Session Process

Credit Union Strategic Planning Process

What is a credit union strategic planning process and why should you use one? If you are a new credit union executive or are thinking of doing your first credit union planning session, this article outlines the process and methodology credit unions use.

Credit Union Strategic Planning Process

The credit union strategic planning process is the steps that you go through as an organization to determine:

  • Vision: the direction of your organization.
  • Mission: what you’re going to do and for whom.
  • Goals: how to measure it and guide your strategy to get to where you want to be.

Before we get into the process, it is important to revisit why we do credit union strategic planning processes. There are 5 main components:Strategic Planning for Credit Unions

  • Get your team on the same page. They should be aligned with the credit union’s vision, mission, and goals.
  • Maximize resources.
  • Understand trends, scenarios, and situations that might impact the credit union in the future.
  • Determine the best ways to accomplish your goals.
  • Develop implementation plans and goals for your team.

A strategic plan is a key tool for your employees, leaders and board members to make sure everyone knows where we are going and why.

The process used to create your credit union’s strategic plan is every bit as important as the plan itself. Then, the method for communicating, updating, and re-evaluating it is essential.

Ultimately, we all have more things we want to do than resources allow. We must therefore prioritize and make tough choices so that we can deliver and get to the next level.

4 Considerations for Credit Union Strategic Planning

  1. How did our credit union get here today?
  2. Where do we want to go, and what are the Champagne moments we will celebrate when we get there?
  3. What might get in our way?
  4. What resources (people, budget, etc.) will we need to get there?

So how do you get there?

Credit Union Strategic Planning Step 1: Gather Inputs

In this first stage we want to gather what has worked from the past. Any credit union performance data, staff surveys, or member surveys are key.

What are the outside factors? Community, political, SEG, economic, social, regulatory or technology that you are concerned about? What keeps you up at night?

SWOT—Strengths, Weaknesses, Opportunities, Threats—make sure you know internal and external factors that impact your credit union.

Credit Union Strategic Planning Step 2: Vision

What will your credit union look like in 5 years?  What is the Champagne moment when you get there? Is it your number of members, your loan portfolio, etc?

Why is this important? What will the impact be if you get there?

Credit Union Strategic Planning Step 3: Mission

Why was your credit union created? What is your mission? Why is that important and who is it for?

Credit Union 2.0 highly recommends creating a painted picture or Vivid Vision to develop these inquiries.

Often as leaders we feel that we have better intuition—in fact, we just know where we are going. The painted picture and Vivid Vision help with that.

Credit Union Strategic Planning Step 4: Values

What are the values that represent the credit union? People helping people? These are about having values that everyone agrees to and are understood.

What are the behaviors that your best employees exhibit? What are the things that won’t be tolerated? What is it like to be an employee at your credit union?

Credit Union Strategic Planning Step 5: Competition and Roadblocks

What could go wrong? What might change in the marketplace? Which competitors should we watch and learn from? Which should we watch and avoid?

Credit Union Strategic Planning Step 6: Priorities, Goals and Tactics

This is where the fun begins. Take the big picture and tie it into your credit union strategic planning process.

Make a list of priorities and action plans that align with your vision.  Prioritize the key items and build a timeline, goals, and measurements.

Credit Union Strategic Planning Step 7: Communication Plan

Who needs to know? What should we communicate? What are the key milestones?

Build a communication plan to board members, employees, and members that will make sure everyone knows what is coming, where you are going, and how you will know when you get there.

Credit Union 2.0 — Credit Union Strategic Planning Facilitators

Kirk Drake and Chris Otey take a unique approach to planning sessions. Their goals are to deal with some of the real issues facing credit unions. These include:

  •                 Who is your ideal member?
  •                 How do we improve board governance?
  •                 How do we get our board to look more like our membership?
  •                 How do we deal with the onslaught of fintechs and technology?
  •                 How do we change our culture to be more like a fintech?

As author of Credit Union 2.0, head of a large technology CUSO, and founder of CU Wallet, Drake has great insights from both his time working at a credit union through his entrepreneurship and board experience.

As board chair of South Bay Credit Union and former CU Wallet and Fiserv executive, Chris has worked with hundreds of credit unions to help them deal with board governance, CUSOs, and other technology challenges.

Want to know the other options in the industry?  Click here for the Facilitators Guide

Credit Union 2.0 — Strategic Planning Options

DREAM (Based on the CU2.0 Book)

Credit Unions are under unprecedented attack from all angles. Thousands of fintechs are collectively hurting the bottom line. Regulators are slowing the industry down.

Credit Union 2.0 outlines the DREAM (Differentiation, Repeat and Reinforce, Educate and Excite, Automate and Motivate) methodology that will help your credit union begin the process of digitally engaging your members, building fierce loyalty, and making them feel the credit union difference.

The Credit Union 2.0 movement teaches why we need to change. It emphasizes key case studies from awesome credit unions, lessons learned from other cooperatives, and strategies for creating fierce loyalty.

Some highlights from Credit Union 2.0 include The ultimate first 100 Day Experience, Hacking your CU’s Repeated Mistakes, and Education = Trust | Trust = Sales.

Finally, Credit Union 2.0 will provide an optimistic outline of the credit union of tomorrow. Such a credit union digitally engages members, builds fierce loyalty, scales gracefully, and makes your members feel like they own the place!

PAINT

Kirk Drake, a serial entrepreneur focused on credit union technology and author of CU 2.0, reveals his P.A.I.N.T. strategy you can use to make your credit union more competitive, more creative and more in tune with today’s digital expectations.

If you have struggled with corporate culture, agility, moving faster, or competing with the onslaught of new Fintechs, the P.A.I.N.T. methodology will help your credit union quickly iterate and apply key “Operating System” Strategies to better engage your members.

Take home these 5 tools:

  1. Painted Picture
  2. Analytics Plan
  3. Innovation and Agility Hacks
  4. Nimble Algorithms
  5. Terminate

Related Content

https://cu-2.com/select-credit-union-strategic-planning-facilitator/

How to Select a Credit Union Strategic Planning Facilitator?

It’s a wild world out there. Disruptive technologies are forcing us to completely reconsider our credit union strategies. If you want your financial institution to be ready for the rocky, futuristic road ahead, you may want to bring on a credit union strategic planning facilitator.

Each summer, hundreds of credit union boards and executives gather at a beautiful offsite location to dream about the future. First comes the icebreaker, then some tough questions. Along the way, we will cover industry trends and peer data before finally jumping into planning. We whip out our sticky notes, markers, and easels, and we begin to democratically home in on a future we can all (mostly) agree with.

Meanwhile, fintechs and non-traditional competitors are breathing down our doors. What if the age-old credit union strategic planning process is too slow. What if our modern world needs modern experts?

If you love the time-honored traditions, are afraid of different viewpoints, or simply don’t want to upset the apple cart, CU2.0 is probably not for you. However, if you want a bold view that focuses on transformational change that will leave a legacy decades from now, read on!

So, how do you select a credit union strategic planning facilitator?

5 Key Criteria to Select a Credit Union Strategic Planning Facilitator

strategic planning for credit unions

  1. Industry Experience
  2. Facilitation Technique
  3. Understanding of Key Trends
  4. Financial Model Understanding
  5. Credit Union Board and Management Expertise

Industry Experience

Credit Unions are a unique animal. We are half non-profit, half cooperative, and half bank. Yes, we know we can’t add. But every aspect of how credit unions plan, fund, and work is different from other businesses in many ways.

Our ways are both our strategic advantage and our Achilles heel. Because of this, having a facilitator that gets the “credit union difference” is essential. Without this alignment, you will waste precious time explaining to the outsider the difference between a credit union and a bank (or why we can’t just raise more capital).

Understanding of ALM, member onboarding, digital blueprints, board governance, and the NCUA are all key elements that your credit union strategic planning consultant should possess.

Facilitation Technique

If you have been through multiple credit union planning sessions, then many of these will feel familiar:

  • Action Planning
  • Brainstorming
  • Energizer
  • Flipchart
  • Go Wild
  • Ground Rules
  • Group Review
  • Ice Breakers
  • Meta-planning
  • Multi-voting
  • Ranking
  • Reverse Brainstorming
  • Round Robin
  • Structure Problem Solving
  • 3-Star Rating
  • Working in pairs or trios
  • All these credit union planning session facilitation techniques are key ways to derive engagement, get involvement, and make sure all key parties are excited and energized by the process.

Make sure you pick a facilitator that has a large bag of facilitation tricks and techniques. In our experience, each board or management team has different hot button issues. Being able to switch gears when one approach isn’t working is a key criteria for making your selection.

Understanding of Key Trends

Sometimes it is hard to see the forest for the trees. If your credit union strategic planning facilitator is still focused on issues and trends from 10 years ago, you might have a problem. It is absolutely essential to find a consultant who can provide a realistic view of the key trends facing the industry and your credit union.

These days, any realistic view should include artificial intelligence, CUSOs, fintech’s, ever changing demographics, and key disruptors. Now more than ever, the future of credit unions will be impacted by non-traditional competitors, cryptocurrency and blockchain technology.

Financial Model Understanding

While trends are essential at the end of the day, credit unions are member-owned cooperatives that must make some money to survive long-term. Picking a facilitator who can balance modern asset liability management needs with growth concerns is essential.

Credit Union Board and Management Experience

Stories are one of the best ways to relate and change perspectives. Whether it is a key question, insight, or lesson learned, having facilitators who have been on credit union boards, worked at credit unions, or consulted in solving real credit union problems is essential.

 Credit Union 2.0 — Credit Union Strategic Planning Facilitators

Kirk Drake and Chris Otey take a unique approach to planning sessions. Their goals are to deal with some of the real issues facing credit unions. These include:

  •                 Who is your ideal member?
  •                 How do we improve board governance?
  •                 How do we get our board to look more like our membership?
  •                 How do we deal with the onslaught of fintechs and technology?
  •                 How do we change our culture to be more like a fintech?

 As the author of Credit Union 2.0, head of a large technology CUSO, and founder of CU Wallet, Drake has great insights from both his time working at a credit union through his entrepreneurship and board experience.

As board chair of South Bay Credit Union and former CU Wallet and Fiserv executive, Chris has worked with hundreds of credit unions to help them deal with board governance, CUSOs, and other technology challenges.

Credit Union 2.0 — Options

DREAM (Based on the CU2.0 Book)

Credit Unions are under unprecedented attack from all angles. Thousands of fintechs are collectively hurting the bottom line. Regulators are slowing the industry down.

Credit Union 2.0 outlines the DREAM (Differentiation, Repeat and Reinforce, Educate and Excite, Automate and Motivate) methodology that will help your credit union begin the process of digitally engaging your members, building fierce loyalty, and making them feel the credit union difference.

The Credit Union 2.0 movement teaches why we need to change. It emphasizes key case studies from awesome credit unions, lessons learned from other cooperatives, and strategies for creating fierce loyalty.

Some highlights from Credit Union 2.0 include The ultimate first 100 Day Experience, Hacking your CU’s Repeated Mistakes, and Education = Trust | Trust = Sales.

Finally, Credit Union 2.0 will provide an optimistic outline of the credit union of tomorrow. Such a credit union digitally engages members, builds fierce loyalty, scales gracefully, and makes your members feel like they own the place!

PAINT

Kirk Drake, a serial entrepreneur focused on credit union technology and author of CU 2.0, reveals his P.A.I.N.T. strategy you can use to make your credit union more competitive, more creative and more in tune with today’s digital expectations.

If you have struggled with corporate culture, agility, moving faster, or competing with the onslaught of new Fintechs, the P.A.I.N.T. methodology will help your credit union quickly iterate and apply key “Operating System” Strategies to better engage your members.

Take home these 5 tools:

  • Painted Picture
  • Analytics Plan
  • Innovation and Agility Hacks
  • Nimble Algorithms
  • Terminate

Related Content

Credit Union Planning Session Facilitators Guide

 

Credit Union Strategic Planning Facilitators Guide

The leaves are falling.  The smell of warm toner is in the air.  Yup – its budget season and credit unions everywhere are diving into credit union strategic planning.  If you hate strategic planning or think off-site workshops that align all of the stakeholders’ interest – then this post is not for you!  However, if you are a credit union board chair, CEO, or the person responsible for selecting a credit union strategic planning facilitator than this post will be helpful.

Credit Union Strategic Planning FacilitatorsStrategy Planning for Credit Unions

‘Every year 3000-4000 credit unions embark on an annual ritual of thinking of the future, determining BHAGs (big hairy audacious goals) and trying to think how our great credit unions might be disrupted.  In our experience having been part of credit union strategic planning sessions at credit unions, fintechs, CUSOs and as management, board, and facilitators – we have seen all sides.  There is nothing worse than a facilitator that doesn’t get our pain points, industry, process, or our underlying challenges from the past.   So here is a guide to 9 credit union strategic planning facilitators that “get it”.

 Credit Union Solutions Group (CUSG)

CUSG is a CUSO owned by the Michigan Credit Union League  They do a great job helping credit unions focus on how to restart growth and find the right products and services for your members.   The process includes onsite facilitation, consumer research, business trends and disruptors, peer analysis, and best practices.

 Dollar and Associates (Dennis Dollar)

Dennis Dollar is the former board chair of the NCUA.  Dollar Associates are highly knowledgeable on key issues such as mergers, field of membership and other legislative and political issues.  Their credit union strategic planning facilitators follow the SWOT (strength weakness opportunities and threats) approach to planning.  Session included key information on the “condition and future of the credit union industry”

 Callahans www.creditunions.com

Callahan’s has a long history and background in the credit union industry.   Callahan’s has great peer level data and analytics that will help credit unions see critical insights and industry trend data that helps credit unions plan for the future.

 Cmeyers

C.Myers is focused on engaging individuals and teams and focuses on the financial services industry.  Their visioning, leadership development and board development are focused on “creating relevancy, sustainability, differentiation” for their clients.

 CU Strategic Planning (Mike Beall)

Mike Beall is a well-known expert and credit union knowledge source.  Mike focused on reviewing financials and looking at trends to develop strategies.   Loans, growth and profitability are key components of hiring Mike to be your credit union strategic planning facilitator.

Cornerstone Advisors

Cornerstone Advisors regularly helps credit unions develop and execute strategic plans.  Their process is more in depth then many and focuses on understanding the client, surveying executives and board members, performing an assessment and ultimately facilitating the meeting.

CU Strategies

Celeste Cook is a CU Industry Expert.  She focuses on one and two day plans for credit unions.  She works with teams to identify CSFs, critical success factors, focused on growth and retention.   Celeste is big on accountability and highlights her approach to building tracking, goals, and benchmarks in her process.

Credit Union 2.0 – Credit Union Strategic Planning Facilitators (Kirk Drake, Chris Otey)

Kirk and Chris take a unique approach to planning sessions. Our goals are to deal with some of the real issues facing credit unions.  These include:

  •                 Who is your ideal member?
  •                 How do we improve board governance?
  •                 How do we get our board to look more like our membership?
  •                 How do we deal with the onslaught of fintechs and technology?
  •                 How do we change our culture to be more like a fintech?

 As the author of Credit Union 2.0, head of a large technology CUSO, and founder of CU Wallet Drake has great insights from both his time working at a credit union through his entrepreneurship and board experience.

As board chair of South Bay Credit Union and former CU Wallet and Fiserv executive, Chris has worked with hundreds of credit unions to help them deal with board governance, CUSO, and other technology challenges.

Credit Union 2.0 -Options

DREAM (Based on the CU2.0 Book)

Credit Unions are under unprecedented attack from all angles.  1000’s of Fintechs are collectively hurting the bottom line.  Regulators are slowing the industry down.  Credit Union 2.0 outlines the DREAM (Differentiation, Repeat and Reinforce, Educate and Excite, Automate and Motivate) methodology that will help your CU begin the process of digitally engaging your members, building fierce loyalty and making them feel the CU difference.

The Credit Union 2.0 movement teaches why we need to change, key case studies from awesome credit unions, lessons learned from other cooperatives, strategies for creating fierce loyalty including – The ultimate first 100 Day Experience, Hacking your CU’s Repeated Mistakes, and Education = Trust | Trust = Sales.

Finally, CU2.0 will provide an optimistic outline of the CU of the tomorrow that Digitally engages members, builds fierce loyalty, scales gracefully, and make your members feel like they own the place!

PAINT 

Kirk Drake, a serial entrepreneur focused on CU technology and author of CU 2.0, reveals his P.A.I.N.T. strategy you can use to make your CU more competitive, more creative and more in tune with today’s digital expectations. If you have struggled with corporate culture, agility, moving faster or competing with the onslaught of new Fintechs – the P.A.I.N.T. methodology will help your CU quickly iterate, and apply key “Operating System” Strategies to better engage your members.

Take home these 5 tools:

  • Painted Picture
  • Analytics Plan
  • Innovation and Agility Hacks
  • Nimble Algorithms
  • Terminate

 

Do Your Credit Union Card Goals Match Your Members’ Needs? 

A recent survey showed that credit unions and their members are looking for different things from their credit cards. In fact, 76% credit union card goals were aimed toward growth, while the rest prioritized member services. But here’s the rub: 100% of members polled listed “false declines” as their number one service issue for credit cards. 

Clearly, there’s a disconnect between member experience and credit union card goals. Growth is a good end goal but making sure existing cardholders feel taken care of is paramount for retention.  There is nothing more frustrating to a member than a false decline in the middle of a busy day. 

Why Card Declines are a Problem 

Speaking from personal experience, I know how frustrating a false decline is. Recently, an old friend came through town. We caught up over drinks and because we were on my home turf, I offered to pick up the tab. My card was declined. 

It worked out in the end. I pulled out a different card and paid with that. Nevertheless, it was surprising and a little bit embarrassing. 

Imagine if I had been out to dinner with a new prospect or client. A hiccup as small as a false decline could have signaled that we weren’t ready or able to take on their business. 

False positives on credit cards can be as high as 90%. I’ve held my fair share of cards over the years, and I relegated any credit card that couldn’t consistently function properly to the back of my wallet. Credit union card goals should include reducing false positives to better align with member needs.  If you want your credit card to be top of wallet – focusing attention on reducing false positives is as important as your rewards programs. 

The Road to Redemption 

An unused credit card in the back of a member’s wallet costs a credit union money, reputation, and relationship trust. Unfortunately, many credit unions aren’t sure how to address false declines, because they want to maintain security and reduce the risk of fraud. 

Reassessing your credit card processor could be your best move. In your RFPs and vendor research, pay attention to false positive decline rates. Also, you can group issuers and acquirers together to see both sides of transactions. Strong data analytics and machine learning can aid in reducing these kinds of problems. 

Another option is to try a pilot with Flexpay to help find and tune your fraud prevention.  Matching up your transaction history with Flexpay’s merchant history will enable you to reduce fraud and improve the member experience.  Best of all, it’s a pilot – so there isn’t any cost! 

In an Ideal World… 

Nobody should have to rifle through their wallet to find a card that won’t mistakenly decline purchases. Or worse, nobody should be left without a way to pay because of an inadequate processor. 

Credit union card goals should align with member credit card needs. Members need credit union credit cards that they can trust. Problem-free credit card processing reflects well on the credit union and its sophistication, which will increase their confidence in other available services. 

The best part of reducing false positive decline rates is that it will inspire member confidence in their credit cards, which will aid growth and reduce attrition. 

There are two ways you can give members what they want: first, you can ask your card processor to prioritize false positive declines. Second, you can join our effort to connect merchant data and credit union data via machine learning. Together, we can reduce fraud risk while maximizing member approval. 

Are you interested in trying a pilot with Flexpay? Fill out the form below today!

 

5 Takeaways from the 2018 Allied Solutions Credit Union Conference

Last month, I had the pleasure of speaking at the 2018 Allied Solutions Credit Union Conference. If you couldn’t make the event, here are the five biggest takeaways.

1) Which employees are the most productive?

First, according to Morten Hansen, Author of Great at Work, Great by Choice, and Collaboration, there are 4 levels of productivity in employees.

  1. Those that accept more and more work, then stress out about the work and then don’t actually do more. These are your least productive employees.
  2. Those that do less (by only agreeing to take on a limited amount), then don’t stress out. Strangely, these employees produce about the same as the next category.
  3. Those that do more, and then stress out. According to Morten, taking on more work just means you are distracted and while you may be spinning more plates, you don’t actually accomplish more.
  4. Finally, there are those employees that do less and then obsess. Essentially this is like the Jim Collins Good to Great hedgehog principle.

Over the past years, I have been on a journey to determine how to make a business the most productive it can be. I’ve been looking at data and hearing compelling stories of how getting this right can be highly impactful. Most of us as leaders are distracted by trying to be too many things to too many people. We can’t build our business model to appeal to all people. Your credit union needs to pick a couple of aspects that you can be the best at and be hyper-focused on those.

2) How to Build a Value-Oriented Metric

Morten also shared how to create metrics that are not just vanity metrics.  The formula is:

Value = Benefit to Others * Efficiency * Quality

This formula really resonated with me and reminded me of one of the most effective metrics Ongoing Operations came up with related to Disaster Recovery.  Essentially, we found that the percentage of credit union clients performing Disaster Recovery tests is directly related to client satisfaction and renewals.  Now, why is this? Well, the value of the DR test is that it demonstrates the benefit to the credit union of the Ongoing Operations disaster recovery solution, our efficiency in performing the test, and the quality of our engineers to solve random problems.

As a credit union, a vanity metric may be the number of new members. But what if we looked at the metrics like the number of new members who take multiple products on day one or the number of new members that complete the onboarding process in less than 15 minutes? There are a number of ways to demonstrate more value in the new member process rather than just onboarding everyone without a quality or efficiency component.

3) Fat Unicorn Naughty Amber Ale

In Canada, there is a beer called “Fat Unicorn Naughty Amber Ale”. It is delicious, and I found it in a random hipster bowling alley in Banff that I wandered into one evening. I highly recommend it if you can find it!

4) Mission Moments

Mission Federal Credit Union’s CEO, Debra Schwartz shared with us “Mission Moments”. These are moments which are planned celebratory moments that the credit union shares with members when they get a new loan or other service-related opportunities. Mission Federal Credit Union also does them with their employees on key achievements. This is a phenomenal idea and a great way to intentionally build memories with members and employees. We should all be implementing this practice at our businesses.

In addition to Debra Schwarts, there were many outstanding panelists.

Mike Bryan, VP, Digital Strategies, Allied Solutions
Chris Otey, Board Chairman, South Bay Credit Union
Lisa Schlehuber – CEO, Elements Financial
Harry Gunsallus – President & CEO, SRP FCU

This group of credit union leaders shared great wisdom around how they are preparing their credit unions to:

  1. Compete with Fintechs
  2. Adapt to Autonomous Vehicle Impacts on Loan Portfolios
  3. Digitally Engage their Members
  4. Deal with Board Transitions
  5. Build Strong Cultures

5) Banff is Amazingly Beautiful

Allied Solutions put on a really great conference, and I highly encourage credit union leaders to attend. This conference is a solid mix of content, networking, and significantly better than average entertainment & activities! Here are just a few of the awesome pictures from the event!

  

Four Lessons Learned From the CU Leadership Convention

This past week I had the pleasure of speaking at the CU Leadership Convention in Las Vegas, Nevada.  This was the first year I have attended this conference, and it was previously called the CU Directors conference. Now that the organizers have opened the conference up to credit union management teams, the conference attendees have grown and the topics discussed have expanded greatly. Here are the top four things I took away from the 2018 CU Leadership Convention.

Cal Ripken is a great opener! 

Cal Ripken kicked off the conference and in his keynote, he shared terrific stories, wisdom, and thoughts about how he set a major baseball record for most number of games played.  I followed Cal in the second speaking slot, and Cal made my life easier by exciting the credit union attendees. My favorite story Cal shared involved how he managed through spring training and avoided getting hurt.  Over Cal’s career, he had nine coaches. So, when spring training started, Cal would proactively propose a training schedule that worked best for him and would take the workload off his Manager. The result was two-fold. There was a happy Manager with a decreased workload and a happy player who avoided early season fatigue and injury. This is a lesson that all of us should remember and put into practice. We should think about how to make our bosses lives easier by proactively proposing solutions to problems and managing ourselves.

Digital Engagement is Happening

When I am preparing my presentation for a conference I am speaking at, I look for examples of credit unions doing innovative things in the area of digital engagement and digital marketing. I am excited to say that this task gets easier and easier with each speech! Credit unions are following the DREAM methodology from Credit Union 2.0 (Differentiate – Recreate & Reinforce – Educate & Excite – Automate – Motivate) and quickly improving their social media presence, websites, video utilization, and connecting the dots between data and the member experience. This is exactly where we should be heading as an industry.

Use Humor and Empathy – They Go Together

Matt Kazam from They Laugh you Win, gave a great presentation on how to use humor throughout our day to day corporate lives. His methodology for joke writing, fusing audiences, and connecting person to person, provided a great framework that we can use in multiple areas of our lives. We can implement his method for better connecting with our boards, giving speeches, or just use it to have a little more fun at home.

Joe Mirachi, CEO of Launch FCU, and Deedee Myers, CEO, DDJ Myers, Ltd. know their Board Stuff!

I think a lot of us really struggle on how to help our boards be more strategic and less tactical. One small example of this is using an associate board member structure to develop a recruitment pipeline that allows for finding younger and more diverse professionals to help you take your credit union to the next level.

Overall, whether you are a board member or a credit union executive, the CU Leadership Convention is a great conference to attend. You are sure to pick up new ideas, network, and jump-start your credit union strategic plans!

credit union leadership convention

Three ways to better connect with your membership

As small niche financial institutions, it is imperative that we don’t lose sight of who we serve.  It is essential to your credit union’s survival to be highly focused on your niche and to customize and personalize your credit union’s solutions. One of the most essential ingredients in this process is how to connect with your member.  Now, what do I mean by connecting?

connect with member

Connecting is about being highly relevant and memorable at multiple levels.  This starts with the aggregate credit union brand, moves to the products & services, and ends with the individual member.   At the end of the day, if you can create continuity between all three levels you will have members that love you. This is the goal. Members who love your credit union then tell your story and bring their friends to you.

There are three things that can help you better connect with your membership.

Utilize video to Connect with Members

Video is becoming highly important in today’s digital world.  In the next few years, it is anticipated that more than 80% of all content consumed online will be in video.  Your credit union’s website, member interactions, and content should all be heavily reliant on video first.   Every website should have biography team videos, a video on the problems you solve for members, video member testimonials, and at least one video on EVERY page.  All these videos won’t happen overnight, but list out all the videos you need, prioritize, and start tackling the videos one at a time. Rome wasn’t built in a day, but it is time to get working on the foundation!  Videos are an essential way to connect with your member.

Connect with Members with a Blog

Now I know what many of you may be thinking, blogs are stupid and no one reads them.  Not true! A blog is simply a more frequent newsletter that allows you to maintain consistent communication with your members.  It is also a key way to train Google on the problems your credit union solves and the community you serve.  Your blog should not be an in your face marketing channel. Members will not click on and read your blog regularly if it is sales pitch after sales pitch. Regular distribution of educational content is a great way to connect with your member. Your blog should be simple quick articles, community news, and things that are relevant to your members. Don’t forget to optimize your posts for keywords and Google.

Use data and machine learning and other tools to hyper-personalize.

Amazon is an example of a company that is a rock star at this.  If you and I both pulled up Amazon on our computers right now, we would see different things based on our historical purchases and what Amazon believes might be interesting to us.  However, your credit union website looks the same to everyone who pulls it up.  The offers on your website are not personalized to the member.  To stand out and be relevant, credit unions should be using analytics, machine learning, marketing automation, and website design to highly personalize every interaction with a member.  The most important ingrediant to connect to your member is personalization.

Ultimately, connecting with members is what it is all about.  Seeing the difference your credit union makes for each and every member is highly rewarding.  Smart use of video, blogging, and data will allow your credit union to enhance those connections and make you highly relevant to your membership.

Originally published on August 1, 2018 on CUInsight

Credit Union Data Analytics: Who are your best members? :)

Our “A” members are the ones who know the difference between a credit union and a bank, believe it, feel it, and espouse it. They bring us all of their financial services business and tell all their friends. If you are interested in what their data tells you about them then this post in Credit Union 2.0’s “Almost 99 Small Data Credit Union Hacks” series will be helpful.

This blog is the ninth and final part in Credit Union 2.0’s “Almost 99 Small Data Credit Union hacks” series and is based on the book Credit Union 2.0 – A Guide for Helping Credit Unions Compete in the Digital Age which covers in depth both big and small data for credit unions. There are six types of data that your Credit Union should be aware of:

  1. Digital Analytics – Desire
  2. Profitability – Fit
  3. Wallet Share – Depth
  4. Transaction – Triggers
  5. Design Data – Predictive
  6. Execution – IFTT (if this than that)

The key here is patterns. Once you sniff out the predictive behavior, you can be proactive with how you interact with the member.

Here are some ideas on where to look for your “A” member patterns:

Data What to do with it?
Favorite Grocery Store Special promotion with that store
Favorite Vehicle Special promotion with the local auto dealer
Favorite Coffee Shop Hang out there too – send them a cup on you!
Favorite Online Retailer Special Promotion
Favorite Local Small Merchant Hang out there too
Favorite Gym Special Credit Union deal
Who They Follow on Facebook Could this be a potential guest blogger on your site? Maybe there is an opportunity for you to update your content to be more relevant.
Where They Work Follow their leadership online
When They go to Branches Better service hours
Who Their Favorite Tellers/Call Center Reps Are Understand why
What Life Stage They are at What is next for them and how can you help?

 

Knowing your “A” members inside and out and further tailoring your services will help those members bring their friends. You want your “A” members fiercely loyal and believing in the credit union difference. Show those members the difference every day and hang out with them and their friends.

Want to learn more about how your fellow Credit Union leaders are using data? We invite you to join our Credit Union 2.0 Strategist Group where over one thousand industry leaders comment on new news and trends while sharing and learning from one another.

This is the final post in a nine part series. If you want the full “Almost 99 Credit Union Small Data Hacks Guide” click here!

In case you missed it:

Click here for part one of the data analytics series.

Click here for part two of the data analytics series.

Click here for part three of the data analytics series.

Click here for part four of the data analytics series.

Click here for part five of the data analytics series.

Click here for part six of the data analytics series. 

Click here for part seven of the data analytics series. 

Click here for part eight of the data analytics series. 

Credit Union Data Analytics: Who are your best members?

Our “A” members are the ones who know the difference between a credit union and a bank, believe it, feel it, and espouse it. They bring us all of their financial services business and tell all their friends. If you are interested in what credit union data analytics tells you about them then this post in Credit Union 2.0’s “Almost 99 Small Data Credit Union Hacks” series will be helpful.

This blog is the ninth and final part in Credit Union 2.0’s “Almost 99 Small Data Credit Union hacks” series and is based on the book Credit Union 2.0 – A Guide for Helping Credit Unions Compete in the Digital Age which covers in depth both big and small data for credit unions. There are six types of data that your Credit Union should be aware of:

  1. Digital Analytics – Desire
  2. Profitability – Fit
  3. Wallet Share – Depth
  4. Transaction – Triggers
  5. Design Data – Predictive
  6. Execution – IFTT (if this than that)

The key here is patterns. Once you sniff out the predictive behavior, you can be proactive with how you interact with the member.

Here are some ideas on where to look for your “A” member patterns:

Credit Union Data Analytics Patterns

Data What to do with it?
Favorite Grocery Store Special promotion with that store
Favorite Vehicle Special promotion with the local auto dealer
Favorite Coffee Shop Hang out there too – send them a cup on you!
Favorite Online Retailer Special Promotion
Favorite Local Small Merchant Hang out there too
Favorite Gym Special Credit Union deal
Who They Follow on Facebook Could this be a potential guest blogger on your site? Maybe there is an opportunity for you to update your content to be more relevant.
Where They Work Follow their leadership online
When They go to Branches Better service hours
Who Their Favorite Tellers/Call Center Reps Are Understand why
What Life Stage They are at What is next for them and how can you help?

 Credit Union Data Analytics: A Members

Knowing your “A” members inside and out and further tailoring your services will help those members bring their friends. You want your “A” members fiercely loyal and believing in the credit union difference. Show those members the difference every day and hang out with them and their friends.

Want to learn more about how your fellow Credit Union leaders are using data? We invite you to join our Credit Union 2.0 Strategist Group where over one thousand industry leaders comment on new news and trends while sharing and learning from one another.

This is the final post in a nine part series. If you can’t wait for next week and want the full “Almost 99 Credit Union Small Data Hacks Guide” click here!

In case you missed it:

Click here for part one of the data analytics series.

Click here for part two of the data analytics series.

Click here for part three of the data analytics series.

Click here for part four of the data analytics series.

Click here for part five of the data analytics series.

Click here for part six of the data analytics series. 

Click here for part seven of the data analytics series. 

Click here for part eight of the data analytics series.