REALeadership:
Igniting Growth and
Innovation on Purpose
Will Marre
REALeadership:
Whole Enterprise Transformation
STRATEGY
Socially-Strategic Business Model
Marketplace
SUSTAINABLE
ABUNDANCE
Smarketing™
CULTURE
Workplace
Inside Out
BRAND
Community
Today’s Objectives
•
•
•
•
Macro World: Consumer Opinion/Trends
Why we are stuck or struggle
What the big opportunities are
How to get started igniting growth by
doing the very best thing you can imagine
The world has
Changed
The Number One Concern
Today in America…
Personal Economic Autonomy
All but the very wealthy
are worried…
• Safety, Security, Peace
• Economic Opportunity and Security
• Healthcare and Retirement
• Cost of a Decent Life
• Environment and Their
Children’s Future
SOURCE: DYG SCAN 2007
Age of
Cynicism
Age of Cynicism
• Crisis of Consumer Trust
• Crisis of Employee Engagement
What’s Driving Consumers?
88%
88% of consumers view business as negatively impacting the
public good and environmental sustainability.
- McKinsey & Co. Global Survey
What’s Driving Consumers?
Consumers
92%
83%
87%
100%
87% say they would switch brands (price
83%
sayanear
companies
have
a associated
92%
have
moreequal)
positive
feeling
of
and
quality
to one’s
responsibility
to support
goodgood
causes.
companies
that visibly
support
causes.
with
good causes.
- McKinsey & Co. Global Survey
What’s Driving Employees?
80%
83%
81%
80% want to work
for companies that
81% of employees
directly contribute
who want to
to
society
but trust
83%
will only
contribute to social
aren’t
sure if
how
companies
it isto
benefits are NOT
find
them.
environmentally/
SURE WHAT TO DO.
socially responsible.
Want to work
for good
companies.
Only trust
companies if
responsible.
Want to contribute…
not sure what to do.
- McKinsey & Co. Global Survey
Why are you in business?
What Consumers & Employees Want
Purpose Must Produce
“Good Fortune”
Purpose
is Your Business Model
• Purpose is Practical
• Purpose is Profitable
• Purpose is Personal
The new goal of humanity is
Sustainable Abundance
People + Planet
Abundance
Sustainable
Profit
The Debate is Already Over
CLUELESS
(What cause?)
REPUTATION
(Cause Marketing)
Exxon
Toyota
Chevron
GM
Monsanto
STRATEGY
(THE CAUSE)
Ikea
GE
Apple
DuPont
A Million
Dinosaurs
Unsure
Intel
J&J
Virgin Air
Fast
Followers
Laggards
Patagonia
Clifbar
Starbucks
Grameen
Bank
Newman’s
Own
Whole
Foods
Early
Adopters
Save the World Sells
of 30,000 Global Brands,
the Top 25 are
“High Purpose”
-P&G
Save the World Pays
High Purpose
companies financially out
perform the general market
15:1
- Jim Collins
Save the World Wins
High Purpose Strategy + Culture
High
Low
Employee + Customer
Stockholder
8 to 1
Productivity
Talent Retention
Margin
Firms of Edearment
Wharton Business School Pub.
What is the purpose of banking?
• Build Self Reliance:
–Provide growth capital.
–Personal Loans: Education, Housing
• Build Quality of Life
–Responsible Consumption
What new opportunities has your
institution gained in the past 24 months?
1.
2.
3.
4.
Growth in Deposits
Growth in Customers
More Brand Recognition
None of the Above
Goal of Any
Economic System
Maximize
Human Benefits
RUSH UPto Civilization
Middle Class drives Human Rights + Economic Development
 Whole Person Jobs
 Tolerance
 Useful Technology
 Religious Freedom
 Environmental Protection
 Free Speech
 Optimism + Happiness
 Free Press
 Cultural Integration
 Equality Under Law
Source: Economist
What Creates Middle Class Access to:
HEALTH
EDUCATION
CAPITAL
INFRASTRUCTUR
E
What’s Your Paradigm?
Revolutions
3
Business Innovation

Disruptive innovation creates new
products, new methods, new solutions
and…
Steals dinosaurs’ customers.
The Leaders Challenge
Today’s Vision vs.
Tomorrow’s Opportunities
“Is this the best
we can do?”
All of us ought to do an exercise called:
“The Future I Really Want”
Describe the world you want to help create.
Micro-Finance
More
Entrepreneurs
Money
Village
Entrepreneurs
Education
Consumption
Profits
Investment
Grameen Bank Loan
• Social Collateral
• Business Support Meetings
• Children Teaching Children
Self-Reliance and Entrepreneurship
is a Universal Human Ability.
Micro Credit
•
•
•
•
•
133 Million Families
500 million by 2015
$200 - Self Reliance
98% repayment rate
Grameen America - 99%
Grameen
Grameen America
106 Million Americans who are “under banked”
Loans • Education • Financial Services
Loans $500-$3000 …… 99.3% Repayment
Bankers
Bankers Without Borders
• Connects skills, passions and
resources to end global poverty.
• Business expertise: To scale up
microfinance solutions.
GrameenFoundation.org
Before
Micro Finance
there were
Credit Unions!
What’s Happening?
• Relentless Competition
• Rising Cost of Operations, IT,
Branches.
• Cost of Effective Marketing, Branding
and Customer Acquisition.
Why Can’t We Think of
Anything Truly New?
1. Need for Predictable Financial Return
2. Risk Analysis
3. Historical Business Model
In what areas have you developed and
rolled out significant customer-impacting
innovation in the past 24 months?
1. Products
2. Marketing and Branding
3. Customer Service and Care
The
Challenge
for Financial Institutions
Legacy Thinking + Legacy Systems
Drives Anti-Customer Arrogance
Old Growth - New branches,
high cost, older customers
New Growth - Internet, Low
cost, younger customers
Old customers want personalized,
face-to-face service.
Young customers want new products,
low cost, fast convenience, and a
brand that stands for something.
Leadership of the Past
GAIN
GROW
GIVE
Vision is a
Metric
Acquire,
Fire,
Divest
Image
Ebita
Leverage Assets
Public Relations
Imagination enslaved by self-interest is
incapable innovation that matters.
Purpose
Purpose Becomes the
Business Model
• Relevant to Human Well Being
• Advocates Consumers Interests
• Focused
Leadership of the Future
GOOD
Improve the Quality
of Everyone’s Life
GTV
GROW
Innovation to
Benefit Humanity
Create New
Value
GAIN
Unique Value
Advantage
Sustainable
Abundance
Imagination liberated by noble purpose ignites invention.
Ethical Vision(GTV)
• Positive qualities you are famous for
• Fundamental criteria for decisions
• Strong internal and external identity
A
Abundance
Create Unique
Value Advantage
Be
Your Own
Benchmark
Don’t Compete…Create
Unique Value Advantage
• Redraw Market Boundaries
• Overthrow Analytical Industry
Frameworks & Benchmarks
• Value to Infinite & Costs to Zero
Communit
Community Banks and Credit Unions
• Build communities
• Educate their depositors
• Promote self-reliance
Invite new customers by radically
eliminating COST.
Invite + Invent + Idealize
(Micro Credit)
INVITE
(Southwest, Minute Clinic, TATA)
III
IDEALIZE
Idealize value by eliminating negative,
dysfunctional, or irresponsible aspects
of current business.
(Prius, ClifBar, Wal-Mart, ING, VirginAir)
INVENT
Invent un-thought of ways to fulfill
imagined needs.
(Google, eBay, iPod/iTunes, Donnone)
ING Direct
A Bank with a Purpose
“Leading Americans back to Savings”
20 Million Customers
Banking is Retailing
ING Direct
• Café Orange
• Planet Orange
• WetheSavers.com
•
•
•
•
Relationships are Structure
Values are Culture
Customer Advocacy is Brand
Financial Literacy & Self Reliance
is the Cause
Result
• Low cost of customer acquisition
• High referral rate
• High customer retention
SMARTKETING
™
Marketing That Makes
Consumers Smart
THREE CHOICES
Famous… for something
that matters.
Invisible… business
and life as usual.
Infamous… toxic
commitment to self-interest.
If you were a consumer in your community,
how would you rate your financial institution?
1. Famous for something that matters
2. Invisible - One of many generic choices
3. Infamous - Tolerated but not trusted
Invest in Your Unique
Value Advantage
Fastest growing financial institutions
spend 2x on marketing, branding,
sales culture, website, online
banking…than stagnant credit
unions.
Source: 2008 National Credit Union
Growth Study CEO Advisory Group
What’s Needed
• Exaggerate your difference
• Megaphone your story
• Amplify your culture
You Are Responsible for Your Promise
CUSTOMER
and
=
EMPLOYEE
Experience
COMMITMENT
Promise
The Mission of Mission
Federal Credit Union…
“Our mission is your mission.”
3 Paths to Unique Value Advantage
1. Nice - human experience - Old
2. Relevant - product experience - Young
3. Excellent - operational experience - Rich
Source: Forrester Research Inc.
Your Value is the
Experience You Create
Systems
Touch Points
Moments of Truth
• Products
• Campaigns
• Branches
• Front line staff
• Websites
• Telephone contact
• Sales Culture
• Correspondence
• Financial Educ.
• Dealing with
delinquency
• Online/email/vmail
• Advertising
• Referral treatment
• Literature
• P.R.
• Loan documents
• Events of personal
significance
• Community
Outreach
• Verbal promises
• IT Services
• Customer feedback
• Disappointments
with service
• Loan turn-down
•Moments of
outstanding service
What’s the best thing I can imagine?
“
”
If we accept the unacceptable it is because
we believe assumptions that are not true.
All our failures are failures of:
– intention
– will
– imagination
What’s the best thing
you can imagine?
DOING, SUPPORTING, INVENTING
Just Start