Title: Strategic Planning.. When is it neither Strategic nor Planning? Daryl Tanner, President Share One, Inc.
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2Strategic 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
4Neither 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.
5Neither 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.
6Strategic 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.
7What Strategic Planning is not
- Rocket Science
- Something only management does
- Something only the Board does
- Something done sporadically
- Something done for the Examiners
8Strategic 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.
9The Importance of good planning
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11Todays 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
12The planning Process
13BHAG - Big, Hairy, Audacious, Goals
Credit Jim Collins, Author of many planning
books and articles
14The Plan Elements
- Vision
- Mission
- Objectives
- Values
- Strategies
- Goals
- Action Plans and Programs
15The planning Process
16The 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.
17The 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.
18The 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.
19The 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
20The 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.
21The 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!
22The Plan Elements
- The mission of HEWFCU is to
- "Exceed our members' expectations in our
commitment to their financial success."
23The 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.
24The 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
25The Planning Process
26Identify 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
27Seek 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
28Member 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
29Member 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.
30SECU of Maryland
- 175,000 members
- 10 offices
- 24 ATMs
- 415 employees
- 800Million in assets
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32How much Does it Matter?
33How much Does it Matter?
34What 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.
35Why 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.
36SWOT 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
37SWOT 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
38SWOT 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
41The 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.
42The Planning Process
Credit Jim Collins, Author of many planning
books and articles
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44Critical Information
45Critical 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)
46Information Resources
- CUES Resources
- CUNAs Environmental E-Scan
- Sponsor data - Press Releases
- CU Volunteers
- Local Community/Chamber of Commerce
- Your Peers
- Your Employees
- Your Members
47Some 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
48The Planning Process
49Forecasting Your Resources
- Preliminary Staff Forecasts
- Financial
- Human
- IT
- Vendor
- Facilities
- Membership, Sponsor/SEGs
- Board Requirements
50The 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
51Community 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.
52The 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
53The Planning Process
54The 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.
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56The Planning Process
57The 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.
58The Planning Meeting
This is the last slide displayed at the CUES
Council meeting
59The 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.
60Location, 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?
61What 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.
62Should 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.
63Required 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.
64Required 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
65Some 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.
66Some 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
67How 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
68The Planning Process
69- What gets measured gets better
70Progress 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.
71Bonus tied to Strategic Plans
72Bonus tied to Strategic Plans
73Some 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
74The Planning Process
75I 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.
76Organization Management
77Project Management
7824481 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
79The planning Process
Credit Jim Collins, Author of many planning
books and articles
80The 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
81The 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
82What 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."
84The 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."