FOCUSING ON CEO-TO-CEO
BRAINSTORMING
November 6, 2013
at the Frederik Meijer Gardens & Sculpture Park
Chris
Butler
Linda
Bodie
Don
Mills
Scott
McFarland
Dean
Wilson
Jeff
Jorgensen
Vickie
Schmitzer
THE BOARD’S INSTRUCTIONS TO OUR CPA FOR CLOSING THE YEAR
 Declared 2013 Patronage Dividends:
$
$
800,000 Standard Patronage Dividend
550,000 Bonus Patronage Dividend
$ 1,350,000
$
400,000 Ownership Dividend
$1,750,000
Year #4 for a Bonus Patronage Dividend: is this becoming an annual tradition?
 Projected Stock Dividend: 4.00%
 Projected Increase in Stock Equity: 13.8%+
These are all projections and should be finalized by
December based on our CPA’s work...then look for a check!
...NOW ON TO 2014!
 In August, the BOD approved the 2014 Business Plan and Budget

This marked the end of our 2014 planning season, and now we’re on to
executing the plan – our new year started 10/1/2013
 Today’s event is the first in our planning season for 2015


Think about 2015 planning when you are in your roundtable group discussions
throughout the day today
There are many more events planned for 2014, as part of our 2015 planning
season – from our Board meetings to focus groups to all of our education
contacts
 The next major event is our Leadership Conference
(June 17-19, 2014 – mark your calendars!)
We truly appreciate your participation, and respect
your dedication in leading this cooperative
What’s next for the
Innovator Investment &
Grant Program?
Plus...A quick update
on last year’s winners
A Return to the
Roundtable Format
Back by popular demand...a full day
to interact with your peers on the
challenges we all face
(And get ready to switch seats after lunch!)
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And now, here’s Randy...
PLUS...A QUICK UPDATE
ON LAST YEAR’S WINNERS
 How do you make innovation, and investing in innovation, a constant focus
and everyday tactic?
 It’s easy inside a firm, but harder when you include an entire network
New for 2014:
 Expanded list of participants
 Applications accepted all year long
 Faster turnaround
 Constant focus of paid
professionals here at CU*Answers
 Evolution is the point of
innovation...so who knows about
2015?
Let’s see what last year’s
project leaders have
been up to...
RENEE MAEDER, BEST ADVANTAGE CU
 Held 1st Flix in the Stix event on
August 8, 2013 (movie: “The
Avengers”)
 Over 200 people attended
 Scheduled 3 for next summer
 Due to weight and bulk the unit
requires hand-delivery
 Other local organizations have asked
to rent it – working on rental
agreement
 BACU is willing to rent to any CU in
Wisconsin!
JENNY BICKEL, FRANKENMUTH CU
 Cooperation among cooperatives
–the 7th Principle in action
 Great community connection and
recognition
 Created a template for
other CUs:
ANNIE LEPPER, SUPERIOR CHOICE CU
 Great Debt Pay Down Year #1:
 The average active participant:
• Paid down $6,107 of their
non-mortgage debt
• Lowered their debt-to-income ratio by 12%
 One participant saw her credit score increase 133 points
 The winner paid down $19,000 of credit card debt and lowered her debt-toincome ratio by 39% (she used the prize money to pay down the rest of her
debt and set up a Money Market account)
 Great Debt Pay Down program for other credit unions to use is ready to go
 Year #2 is already underway with 30 participants
Back by popular demand...
A Return to the
Roundtable Format
Here’s how it will work:
These are intended to
spur conversation . . .
Randy’s not always
right!
4 questions: 1 hour each
Introduction by Randy
10 minutes
Brainstorming with group
30 minutes
Recap / summary report from 1-3 groups
20 minutes
• Topics 1 & 2 will be before lunch (12:00p),
then 3 & 4 after lunch (1:15p)
• There’ll be extra time for networking
between questions
• Scribes will take notes for your group
– Notes from all groups will be posted by Nov.
15th on the CEO Strategies website
• Choose a spokesperson in case your
group is selected to give a summary
report
Get ready to switch
tables after lunch
Growth
What tactics are you counting on for growth
today and in your future?
What is your approach to...
 ... traditional, organic growth?
 ... growth through balance sheet alliances
and mergers?
 ... growth through finding new opportunities
in the networked world?
 ... growth through internet strategies
and tactics?
RK says, “It’s not technology. It’s a
commitment to migrate your priorities to
this channel. Budget big and spend the
money so that any time anyone thinks about
you, they go to the internet.”
RK says, “Move to low-cost
communication tactics, create a buzz
as often as you can, and respond in
new channels. Begin to pivot your
strategy away from yesterday’s
standards as quickly as you can.”
RK says, “Find advantages
with players like
CU*Answers that will
participate in your having a
financial advantage over
other credit unions in
buying a new market.”
RK says, “Hunt for big opportunities
and find partners to make
collaboration a business for things that
are beyond your reach.”
Compliance & Examinations
How are you planning to overcome mounting
pressures related to compliance and examinations?
What is your approach to...
 ... keeping on top of whatever everyone else knows
(or should know), and doing it faster and cheaper
than your competition?
 ... responding to new regulations and examiner
comments with minimal disruption and maximum
return on your investment?
 ... executing once you have a solution?
 ... managing your relationships with
examiners and third-party commentators?
RK says, “Design and manage the encounters. Use
exam protocols and teach the examiners the best
way for the two teams to work together. Plan to
reduce your costs each time you interact.
Consider hiring a shared resource for managing
and coordinating exam and audit contacts.”
RK says, “Focus on being
proficient at internet research
and develop a network of
people who will exchange what
they know for what you know.”
RK says, “If it doesn’t pay to
fight, don’t fight. But know
the difference between
capitulation and
compromise. Build native
solutions with CU*Answers
and spend as little as
possible to respond to
regulatory mandates.”
RK says, “Do not add direct
resources when you can add a
shared one. Create and
participate in networked auditing
resources instead of adding a
new vendor or teammate.”
Time for lunch!
Back at 1:15 – pick a new table!
And haven’t you
been wondering
about these?
Mobility
How will you deal with “mobility” and the
effects of mobile devices in your marketplace?
RK says, “When it comes
to mobile, it’s the wild,
wild west. Hedge your
bets and spread your
money across the board.
Don’t lock in too early,
and be ready to change.”
What is your approach to...
 ... the mobile member as a consumer?
 ... the mobile member as an owner?
 ... the mobile employee?
 ... the mobile executive?
RK says, “Connect the dots.
Build tools that allow insight,
auditing, and catalysts for
getting connected with the dayto-day teams and what
members need.”
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RK says, “This could be a
real game-changer. Include
your volunteers and every
active owner in behindthe-scenes data that makes
owning a co-op real.”
RK says, “Balance their
expectations between what
they can do in their everyday
life with what they can do at
work. Use their skills. Build
solutions that are intuitive for
the average mobile employee.”
Marketplace Challenges
How do you respond to these classic
marketplace business challenges?
What is your approach to...
RK says, , “Avoid selling out your future for
what appears to be today’s immediate
priorities. Resist the urge to compete at any
cost, only to find yourself out of balance
down the road. Concentration risk is not just
a lending theory.”
 ... the rising interest rate environment?
 ... competition for member loans?
 ... big data and the pressure to figure it out?
 ... influencing regulators and lobbyists?
RK says, “Use the power of grassroots efforts.
Exercise your own voice before you sell out to
a hired gun. When you hire a hired gun, make
sure he knows as much about your game as he
does getting along in the political game. Be an
antagonist without being an anarchist.”
RK says, “Work harder at getting
new loan applications than you do
approving poor ones. Find the key
success factor in lending from the
big picture. Do not overspend on
anything off that path. Get over
yourself and participate in the
opportunities of others, and
vice versa.”
RK says, “Get focused on how you use your
data, before you buy tools and consultants
and use everyone else’s data. Understand
the ideas before you invest. Be a smart
buyer of big data hype.”
Wrap-up
 Scribe notes will be compiled and posted on the CEO Strategies website no later
than Friday, November 15th
http://ceo2013.cuanswers.com/
Wrap-up
 Consider this challenge to the CU*Answers Board at the August Planning Session:
“What if the network has already written 95% of the technical concepts that
will ever be needed by 95% of our client participants?
“What if the CU industry already has 95% of all the technical tools that will ever
be needed by 95% of all credit unions?
“What if over the next 10 years we have to look to new concepts to invent
revenue extensions that fuel our ability to disruptively control prices and take on
new investments for our community (network)?”
 As fellow CEOs, as my peers and the Board’s peers, consider what this means to
you as an owner of the CUSO
 Then be ready to participate in our 2015 planning season, and all of the events
where you’ll have the chance to add your voice
I hope that March 25 & 26 are dates when you’re
planning to make sure your voice is heard...
Mark your calendar now!
March 25-26,
2014
2014 Special Event
Tuesday, March 25
 Accounting Top 10 Focus Group (meeting #3)
–
Working with CU*Answers developers to prioritize, envision, and deliver
new CU*BASE accounting tools
 CFO Strategies Roundtable (inaugural meeting)
–
A networking session for CFOs and accounting leaders, to discuss financial
issues related to credit unions and the solutions within our network
Wednesday, March 26
 2014 CUSO Pricing Focus Group (meeting #3)
Discussion with CEO Randy Karnes on CU*Answers’ pricing trends,
challenges, and potential future solutions
– Interact with CU*Answers Board and senior leadership on how CUSO
pricing designs affect CU budgets and operations
– Learn what potential changes your CU might consider for business plans
for 2015 and beyond
–
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...AND FOR THE WEEK!