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Strategic Planning.. When is it neither Strategic nor Planning? Daryl Tanner, President Share One, Inc.

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Title: Strategic Planning.. When is it neither Strategic nor Planning? Daryl Tanner, President Share One, Inc.


1
(No Transcript)
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Strategic Planning..When is it neither Strategic
nor Planning?Daryl Tanner, PresidentShare
One, Inc.
Share One is a technology CUSO providing advanced
information processing systems to shareholder
credit unions throughout the country
3
  • "As for the future, your task is not to foresee,
    but to enable it." -- Antoine de Saint-Exupery,
    The Wisdom of the Sands

4
Neither Strategic nor Planning?
  • I use the term Strategic in the same way Sun
    Tzu inferred its use in The Art of War written
    over 2000 years ago and still widely read today.
  • Sun Tzu refers to strategies as Military
    methods that seek to avoid confrontation and
    achieve victory, that enable you to use your own
    resources wisely and where ever possible, uses
    the enemys resources against them.

5
Neither Strategic nor Planning?
  • Strategies are methods of making use of what
    resources you have to make some part of your
    vision achievable with in a set period of time.
  • As in war, you dont rush in without the proper
    resources to achieve victory. Nor do you go to
    war without understanding what is to be gained
    nor having underestimated your enemys resolve.

6
Strategic Planning
  • Some textbook definitions
  • Strategy - A plan of action intended to
    accomplish a specific goal
  • Tactics - A procedure or set of maneuvers engaged
    in to achieve an end, an aim, or a goal.
  • Objectives - Something worked toward or striven
    for.
  • Goal - A goal is a desired state of affairs of an
    organization.

7
What Strategic Planning is not
  • Rocket Science
  • Something only management does
  • Something only the Board does
  • Something done sporadically
  • Something done for the Examiners

8
Strategic Planning is a..
  • Continuous and..
  • systematic process where
  • people make present day decisions about..
  • intended future outcomes..
  • how the outcomes are to be accomplished, and
  • how success is measured and evaluated.

9
The Importance of good planning
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Todays Objectives
  • Provide an overview of the strategic planning
    process
  • Discuss important success factors
  • Discuss threats to the planning process
  • Discuss some methods of measuring success

12
The planning Process
13
BHAG - Big, Hairy, Audacious, Goals
Credit Jim Collins, Author of many planning
books and articles
14
The Plan Elements
  • Vision
  • Mission
  • Objectives
  • Values
  • Strategies
  • Goals
  • Action Plans and Programs

15
The planning Process
16
The Plan Elements
  • The Vision
  • Your first step is to define a realistic Vision
    for the credit union. This should be presented as
    a sketch of the business in three or more years
    time in terms of its likely size, membership
    characteristics, product range,
    technology/delivery systems employed and the
    desired perception by the membership.

17
The Importance of Alignment
People throughout your organization must share a
clear understanding of their mission and values.
Total organizational alignment means that within
the realities of the surrounding environment, all
components of your organization-including your
mission, vision, values, strategy, structure,
systems, individual style and skills, and
especially the minds and hearts of your
people-support and work together effectively for
maximum performance. It is a process that never
ends.
Stephen R. Covey
The principle of alignment means working together
in harmony, going in the same direction,
supporting each other.
18
The Plan Elements
  • Define the credit unions mission
  • At the very least, your credit union's mission
    statement should answer three key questions
  • What are the opportunities or needs that we exist
    to address? (the purpose of the credit union)
  • What are we doing to address these needs? (the
    credit unions business)
  • What principles or beliefs guide our work? (the
    values of the credit union)
  • Scott Adams, creator of Dilbert, defines a
    mission statement as a long, awkward sentence
    that demonstrates managements inability to think
    clearly.

19
The Plan Elements
  • Our Mission
  • Our mission is to provide personal financial
    services of a superior quality to the
    members/owners our chief concern being their
    financial well-being.
  • We desire to be the primary financial institution
    of our members. We will use automation and
    technology to support a highly trained group of
    volunteers and staff.
  • Professional managers will be accountable for the
    quality of service and will be given sufficient
    flexibility in implementing policy to ensure that
    the member perceives the highest degree of
    excellence in every contact.
  • Professional marketing will provide aggressive
    programs to sustain and increase growth. We will
    seek our growth both from new members and by
    serving the financial needs of present members in
    a more complete manner. We will not sacrifice
    quality of present services to seek growth.
  • In order to provide quality member services, the
    credit union must remain financially sound and
    secure. Adequate operating controls, capital
    reserves and liquidity will be maintained at all
    times.
  • We will be sales oriented in our approach to
    members, but traditional credit union philosophy
    will remain our guiding principle. Among
    financial institutions, this credit union is a
    unique organization with deep and abiding human
    values. Our goal is to maintain those qualities.
  • 13 August 1985

20
The Plan Elements
  • Mission Statement
  • Pacific IBM Employees Federal Credit Union is a
    progressive, member-owned, socially responsible
    financial organization providing quality
    financial services at competitive rates to meet
    member needs, while maintaining sound growth and
    earnings to assure financial stability, providing
    a challenging and rewarding environment for our
    employees, and participating as an integral part
    of the community of credit unions.

21
The Plan Elements
  • Mission Statement
  •  
  • The mission of State Employees' Credit Union is
    "People Helping People in North Carolina." As
    a cooperative non-profit association, the purpose
    of State Employees Credit Union is to
  • Promote thrift among its members by affording
    them an opportunity to accumulate their savings
  • Create for them a source of credit at a fair and
    reasonable rate of interest
  • Provide for its members an opportunity to use and
    control their money to improve their economic and
    social condition
  • The future of your Credit Union, its continued
    success, and the opportunities to enhance the
    lives of all North Carolinians will take a
    collective effort of member volunteers, SECUs
    4,200 dedicated employees, and you! Together we
    all make a difference!

22
The Plan Elements
  • The mission of HEWFCU is to
  • "Exceed our members' expectations in our
    commitment to their financial success."    

23
The Plan Elements
  • Our Mission - To help ensure the success of our
    shareholder/clients by providing the very best
    solutions to their information processing and
    technology requirements and by providing service
    and support that not only meets their needs but
    exceeds their expectations. Share One, Inc.

24
The Plan Elements
  • The Values
  • The next element to address is to identify and
    validate the values governing the operation of
    the credit union and its conduct or relationships
    with society at large, its suppliers, members,
    employees, and other stakeholders
  • These might be Volunteerism, cooperative
    structure, one-member-one-vote, not-for-profit,
    sharing, ethical behavior and member/owners

25
The Planning Process
26
Identify your objectives?
  • In your Vision and Mission you decided what you
    wanted to be
  • Now find out where you are in relation to those
    ideals
  • Externally, you can use structured surveys to
    determine how your members perceive you now
  • Internally, use SWOT to determine what your
    current position is

27
Seek to have staff input
  • Management should orchestrate ways of gathering
    information from staff
  • Surveys
  • Open Staff meetings
  • Breakfast with the Boss
  • And from department managers
  • From department managers meetings
  • Special preview meetings

28
Member Surveys
  • It is rare that a credit union surveys their
    members too much- it is more likely that they
    survey too little.
  • Surveys can be
  • Large and externally created and analyzed
  • Small - Focus groups
  • Continuous - Lobby and service surveys
  • Cyclical - Secret Shoppers

29
Member Surveys
  • Surveys should be
  • Conducted on a regular, repeating basis
  • Should be designed to glean the members
    perception of the targeted areas
  • Should ask each question in more than one way
  • The survey you analyze and take to the meeting
    will be your benchmark
  • Measure all progress from that point.

30
SECU of Maryland
  • 175,000 members
  • 10 offices
  • 24 ATMs
  • 415 employees
  • 800Million in assets

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How much Does it Matter?
33
How much Does it Matter?
34
What is SWOT?
  • Strengths, Weaknesses, Opportunities, and
    Threats.
  • Strengths What are our strengths that will
    enable us to grow and prosper
  • Weaknesses What are the things we must do better
    or stop doing in order to be successful.
  • Opportunities What things do we need to embrace
    and take advantage of that will allow us to
    develop, grow and manage to success. 
  • Threats What are some of the barriers and
    obstacles that are in the way of our being
    everything we want to be.

35
Why SWOT?
  • It works!
  • It can be done anonymously
  • It can elicit both good news and bad news
  • It allows/encourages candor
  • It gets most all issues, internal as well as
    external, onto the table
  • SWOT can include both Board and staff and can
    even be conducted with the members through focus
    groups
  • An example of an external SWOT.

36
SWOT Results
  • Strengths
  • Management team responds well to objectives
    Good teamwork
  • Solid capital position
  • Large membership base
  • Excellent relationship with state agencies
  • Good reputation with members and peers
  • Strengths in the legislature

37
SWOT Results
  • Weaknesses
  • Past employee recruitment processes
  • Lack of past training culture
  • Sheer size of operations
  • Lack of appeal to low risk borrowers
  • Lack of adequate communication inside
  • Lack of a long term plan
  • Lack of core values and unity of focus

38
SWOT Results
  • Threats
  • Loan loss potential
  • Losing focus
  • Competition banks appeal to low risk borrowers
  • Some employees will not make the cut of higher
    expectations
  • Mid-management burnout
  • Rate risk vulnerability

39
  • 2004 SWOT Customer Survey
  • Strengths What are Share Ones strengths that
    will enable us to grow and prosper
  • Customer Service. This is what has always stood
    you guys apart from the others. Quick answers
    are always provided and you always get the
    feeling that you are top on their list (although
    Im sure we arent always) when you call. Dont
    loose that as you grow. (I dont see that
    happening!)
  • New Solutions is really something special and the
    basis for an unbelievable system with an
    unlimited amount of growth potential.
  • Credit Union owned. Share One has always been a
    great company, but with credit unions having an
    ownership in the company now, that says a lot
    about your commitment to this industry.
  • Excellent Product
  • Personal Service
  • Weaknesses What are the things we must do better
    or stop doing in order to be successful?
  • Customer support is getting thin with the number
    of new clients
  • Turnaround time for CSRs to be put in production
    that promises arent made on
  • Scheduler and Auto Runner still seem complex
  • NS query needs to do a better job of crossing
    tables
  • Cross reference table not user friendly
  • Growing fast, continue to meet customers needs
    and not become too large to meet customer service
    demands.
  • One of your toughest jobs has to be hiring
    exceptional employees. You have an outstanding
    group and to keep that top notch as you grow is
    going to be something you will have to constantly
    monitor.

40
  • 2004 SWOT Customer Survey
  • Opportunities What things do we need to embrace
    and take advantage of that will allow us to
    develop, sell and manage to success. 
  • Keep focus on compatibility of NS with of the
    shelf and other vendor products
  • Monitor the competition for new products so you
    can match them
  • With NewSolutions, there seems to be an almost
    endless amount of potential with the system. You
    have opportunities to add other products and
    services (OFAC, Bill Pay) into the fold, but be
    careful with trying to be too much for everyone.
  • Threats What are some of the barriers and
    obstacles in the way of our being everything we
    want to be.
  • Recruiting and maintaining dedicated workers.
  • Other data processing providers with larger
    marketing budgets. Don and Roy need a bigger
    budget to help sell NewSolutions! One thing our
    credit union has never been afraid to do was
    spend money on our marketing efforts to increase
    our membership growth.
  • Symitar, Open Solutions, etc. Weaker reputation
    of old Legacy product
  • Somewhat of an unknown player in a tough
    industry.
  • Very long lead times on new sales.
  • Resource requirements to sell, install, convert
    and service new business conversely need to
    grow to maintain/achieve critical mass

41
The Plan Elements
  • The Objectives
  • The third key element is to explicitly state the
    credit union's Objectives in terms of the results
    it needs/wants to achieve in the medium/long
    term.
  • Objectives should relate to the expectations and
    requirements of all the major stakeholders,
    including members and employees, and should
    reflect the underlying reasons for existence.
  • These objectives could cover growth, employee
    development, profitability, technology, product
    offerings and FOM changes, organizational
    development.

42
The Planning Process
Credit Jim Collins, Author of many planning
books and articles
43
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44
Critical Information
45
Critical Objectives
  • Improve the members perception of the quality
    and safety of our services
  • Enhance the member-driven nature of the credit
    unions culture
  • Improve HRD functions including needs-based
    training, improved hiring practices, update
    salary grids and implement pay-for-performance
  • Implement expense control systems and improve
    productivity
  • Improve communication between all departments and
    groups
  • Improve DP system performance future scalability
  • Address loan product, operations and quality
    deficiencies
  • Take action to provide better operational and
    member-driven facilities
  • Improve cost analysis and product pricing
  • Improve financial and performance reporting
    (EIS/BI)

46
Information Resources
  • CUES Resources
  • CUNAs Environmental E-Scan
  • Sponsor data - Press Releases
  • CU Volunteers
  • Local Community/Chamber of Commerce
  • Your Peers
  • Your Employees
  • Your Members

47
Some of the resources from CUES
  • Credit Union Management Magazine
  • CUES Conferences and Educational Seminars
  • Consulting Services DSI - Scenarios for Credit
    Unions
  • CUES Web Site has help for your Action Plans
  • Member Share
  • Building Your Mortgage Market
  • Credit Union Facility Strategies
  • CUES Complete Guide to Mergers
  • CUES Pacesetter Financial Performance Member
    Business Lending The New Frontier
  • Members Trust A Guide to Building Trust Services
  • A Fresh Perspective on CRM
  • Multicultural Marketing Opportunity for Growth
  • SEGs A Guide for Managing Credit Union Growth

48
The Planning Process
49
Forecasting Your Resources
  • Preliminary Staff Forecasts
  • Financial
  • Human
  • IT
  • Vendor
  • Facilities
  • Membership, Sponsor/SEGs
  • Board Requirements

50
The Plan Elements
  • The Strategies
  • Next are the rules and guidelines that lay the
    groundwork for the Action Plans by which the
    mission objectives etc. may be achieved.
  • They can cover the credit union as a whole
    including such matters as diversification through
    formation of a CUSO, membership and asset growth,
    or merger plans, or they can relate to primary
    matters in key functional areas, for example
  • The credit unions income from reserves will fund
    all future growth.
  • New products and delivery systems will
    progressively replace/enhance existing ones over
    the next 3 years.
  • Delivery systems will require newer technology

51
Community CUsA different branching paradigm
  • Banks invest in branches as they get a tax break
    for doing so.
  • Credit unions dont
  • Credit unions invest in technology so they dont
    have to invest in Branches
  • Banks dont
  • Community credit unions have to find the middle
    road strategy.

52
The Plan Elements
  • The Goals
  • Next come the Goals. These are specific interim
    or time-based measurements to be achieved by
    implementing the chosen strategies in pursuit of
    the credit union's objectives, for example, to
    achieve asset growth of 30m in three years time.
  • Goals should be quantifiable, consistent,
    realistic and achievable. They can relate to
    factors like PFI, products offered, financial
    performance, security and efficiency.
  • Some Goals can be BHAGs

53
The Planning Process
54
The Plan Elements
  • The Action Plans
  • The next elements are the Action Plans which set
    out the implementation plans for the key
    strategies.
  • These should cover resources, objectives,
    time-frames, deadlines, budgets and performance
    targets.
  • These plans should each be assigned to a key
    member of the management planning team who then
    selects the implementation team.

55
(No Transcript)
56
The Planning Process
57
The Plan Elements
  • The Contingency Plan
  • It is important that the group evaluate the
    assumptions upon which your new plan is based and
    talk about what could happen to the Action Plans
    and what action the Board would want management
    to take in any possible eventuality.
  • By getting this on the table during the planning
    meeting, it lessens the ramifications of not
    meeting goals if unexpected conditions impair the
    assumptions to a significant degree.

58
The Planning Meeting
This is the last slide displayed at the CUES
Council meeting
59
The Planning Meeting
  • Managements preparation meetings prior to the
    general Planning Retreat are indispensible
  • Gather, analyze and digest the necessary
    information
  • Have your ducks lined up but not set in concrete
  • Plan the planning retreat
  • Create and send information packets out as early
    as possible
  • If there is an outside facilitator, meet with
    them and discuss the information being sent out.

60
Location, Location, Location
  • Where should the planning meeting be held?
  • Is this your traditional planning environment?
  • 1. Booze
  • 2. Golf
  • 3. An expensive resort setting where management
    can passionately discuss the need for cost
    control
  • 4. Booze
  • Why are the location and environment so important?

61
What I look for in a location
  • Pleasant enough to distract the participants from
    thinking of their other work.
  • Not too far away from the office or from where
    most participants live.
  • A large meeting room with COMFORTABLE chairs and
    plenty of room for everyone to spread out the
    distributed materials.
  • Lots of electrical outlets for the audio/visual
    equip and good window shades
  • Highly Desirable a restful sitting area away
    from the meeting room where aside conversations
    can take place.

62
Should you use a facilitator?
  • If you are not doing formal planning already, a
    professional facilitator can help get you off on
    the right foot.
  • Provides a bridge between Management and the
    Board and helps to establish the Rules of
    Engagement
  • If you are past this and already doing successful
    planning, do what works for you.

63
Required Facilitator Skills
  • A GOOD facilitator
  • Does pre-work and is familiar with credit unions
    ( your credit union)
  • Has previous credit union planning experience
  • Is good at listening to what is being said
  • Flexibility Can change direction to round up
    the strays
  • Can keep the focus on the credit union goals
    through all types of discussions
  • Gets everyone involved and encourages
    participation
  • Is good at questioning what appear to be
    Assumptions voiced by the group (As in The way
    it has always been done)
  • Be more objective and therefore handle difficult
    situations.

64
Required Facilitator Skills
  • A GOOD facilitator
  • Promotes broad individual ownership in the group
    conclusions and decisions
  • Make sure ideas and decisions are not lost (Flip
    chart)
  • Builds rapport among the participants
  • Manages the conflict that can happen in such
    group dynamics
  • Broadens the discussion by bringing in pertinent
    outside information
  • Understands the technology or at least the key
    role that technology plays
  • Make sure the desired outcomes are kept in front
    of the group.
  • Manages the planning process to actionable
    conclusions

65
Some of the Key ChallengesAfter we had
identified the major issues facing the credit
union in the eyes of the staff and the
membership, I gave a short questionnaire to the
Board asking them to rank the priority of each of
the issues. As you can see, they were all over
the board. This was managements challenge, to get
a unified position on these issue during the
planning meeting. We succeeded.
66
Some of the Key Challenges
  • Developing a strategic focus
  • Defining appropriate and realistic targets
  • Developing appropriate metrics to be
    member-focused you need to be metrics driven
  • Staff education and buy-in (Employees are more
    likely to have a buy-in of the results of the
    planning process if you solicited their input at
    the outset

67
How should the meeting be conducted?
  • Present results of member perception surveys
  • Skip most of the touchy-feely stuff
  • Find a way to broach the tough issues
  • Management must be PREPARED
  • Each member of management presents their areas
    position and goals
  • Consider bringing in 1 or more outsiders
  • Wrap-up the Mission Statement at the end
  • Know how to focus on what needs to be done

68
The Planning Process
69
  • What gets measured gets better

70
Progress Is Measured Communicated
This form was filled out after each subsequent
survey of the membership on the same issues and
the change in there perception was marked. I left
the credit union before the end of the year and
so do not know if it was actually followed up on.
However, we did the same type of survey and
measurements at Pacific IBM FCU and tracked it
for two years. We noted substantial improvement
in every area that we had concentrated Action
Plans to address.
71
Bonus tied to Strategic Plans
72
Bonus tied to Strategic Plans
73
Some of the actions taken
  • Improve the members perception of the quality
    and safety of our services
  • Review and upgrade all ATM sites, install cameras
    and monitors in lobby
  • Improve HRD functions including needs-based
    training, improved hiring practices, update
    salary grids and implement pay-for-performance
  • Hire new HR VP, Implement salary study, design
    and implement SECU University with career-pathing
    for all positions, begin widespread training
    classes
  • Improve DP system performance future scalability
  • Work with Vendor but also design RFP for IT
    System Search
  • Address loan product, operations and quality
    deficiencies
  • Rewrite new Loan Policies, Implement CRI credit
    scoring and centralized approval, rewrite
    collection procedures and implement credit
    counseling
  • Take action to provide better operational and
    member-driven facilities
  • Move management to League building, lease new
    parking lot for staff, add 20 new parking places
    for members, add 3 new teller windows, add
    offices for loan officers, add three new
    branches, a mobile branch and 5 new ATMs
  • Improve cost analysis and product pricing
  • Purchase CAM cost accounting system

74
The Planning Process
75
I was very impressed with this tool used to track
Strategic Planning issues over time. It was
developed jointly by Jim Cardwell and Kevin
Foster Kidde of Washington State Employees Credit
union. It is also priced reasonably on a per user
basis and is integrated with Microsoft Project
and Office.
Designed for Web deployment and integration with
the Microsoft Office suite and MS Project,
Connections 3.0 creates a virtual blueprint of an
organization, its goals and strategic plans. It
seamlessly aggregates the daily work performed by
each employee with the individual desktop tools
they use to do their work. It is a fast, easy and
affordable solution that builds a culture of
performance, teamwork and motivation. The
software connects the organization in three
important ways.
76
Organization Management
77
Project Management
78
24481 Detroit Road, Suite 300 Westlake, OH 44145
800.395.1410 Jim Cardwell jcardwell_at_cardwellgrou
p.com Karla Norwood knorwood_at_cardwellgroup.com
People Management
79
The planning Process
Credit Jim Collins, Author of many planning
books and articles
80
The Feedback/Adaptive Cycle
  • Review the Action Plans every month
  • Share progress with the Board
  • Make mention of variations and give reasons
    wherever possible
  • Alert the Board when assumptions are compromised
  • Provide the Board with alternatives based on the
    Contingency Plan discussions

81
The Successful Planning Process
  • Will result in a plan that
  • is team developed, reflecting the consensus of
    your Board and Management team.
  • Is based on extensive member and staff input,
    market research and analysis.
  • focuses your credit union on a small number of
    major goals.
  • embodies individual team member commitment to
    achieve the goals.
  • is complete with doable action plans containing
    realistic targets, milestones, and metrics.
  • assist benchmarking individual performance
    measurement.
  • contains a follow-up program to keep your team on
    course.
  • is fully documented, providing collaboration
    processes so you can maintain it.
  • will stimulate change and become the building
    block for the next plan

82
What is success?
  • Yesterdays Homeruns Wont Win Todays Game
    Babe Ruth
  • Success is sustained accomplishment
  • The Strategic Planning process really never ends
    It must become a part of your corporate culture
  • It must become a sustaining value in and of
    itself.

83
  • "Hope is not a strategy."

84
The cost of not planning you journey carefully.
85
  • Anyone who might wish to download the
    presentation, can get it from our web site at
  • www.shareone.com

86
                                      The
actions we take lead to the fulfilling of our
vision. Our vision drives our actions."
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