2013 Business Plan August 2012 Visionaries, Challengers, & Game Changers EARNING A REPUTATION FOR BUSINESS DEVELOPMENT EXPERTISE Visionaries, Challengers & Game Changers 2 Someday when people look back on CU*Answers, what do we want them to say? “CU*Answers was a team of visionaries, game changers, and challengers... cuasterisk.com was a network of those kinds of people, and inspired generations of credit unions to adopt those same goals.” Building Business Development Expertise 3 Business Development (according to Wikipedia): “Comprises a number of tasks and processes generally aiming at developing and implementing growth opportunities.” We’ve planted our flag on the idea that we use our products and services to build businesses... We’re a network that can generate growth opportunities So in 2013, we’re focusing more than ever on business development as a route to earn us the reputation as Visionaries, Challengers & Game Changers Will your team be the first to lay claim to one of these monikers? Reviewing Our Approach An Ongoing Foundation For How We Plan, Every Year (1) Differentiating Our Network Approach Old Game/New Game 5 Old Game (Standalone CU Model) 1 2 3 People Who Need Leaders The Ultimate Client (CU boards/volunteers with a charter) (CU boards looking to field a team to lead their organization) People Who Lead and Need Processes to Run a Business 9 (CU CEOs) People Who Design Processes for People to Use Tools (Organizations designed to consult and outsource process oversight and design) 5 Professional Management Vendors 10 (Organizations designed to lead networks of credit unions or operational clusters) (CU management teams) 4 New Game (Collaborative/Networked CU Model) People Who Use Tools Professional Service Vendors 8 Shared Employee Service Businesses 7 (CU staff members) (Organizations designed to execute on behalf of the CU’s business plan through shared teams and personnel offerings) Tools Tool Providers (CU*Answers solutions, old game) (CU*Answers solutions, old game) 6 (2) Attacking Our Marketplace with a Layered Design 6 LAYER 1: CU*A TOOL PROVIDER/CLASSIC CORE PROCESSING 1. 2. 3. 4. Packaged revenue expectations Diverse and general approaches Responding to operational models and configurations Leveraging an active audience upstream to conceptual models, and their evolution LAYER 2: CU*ANSWERS MANAGEMENT SERVICES 5. 6. 7. 8. A la carte service revenue expectations Specialty services and expert approaches Driving conceptual models and change into credit union configurations Leveraging expertise downstream for core processing depth and expertise LAYER 3: CUASTERISK.COM NETWORK CONFIGURATIONS 9. 10. 11. 12. 13. Wholesale and alliance-based revenue expectations Franchise-like business expansion (cuasterisk operations) Alliance-based alternative business expansion (non-CU*BASE leverage) Shared infrastructure projects Leveraging expertise across shared commonalities (3) Goals for Expanding our Client Base 7 1. Work with more diverse and complex CUs who have dedicated and specialized teams. 2. Increase our solutions’ viability for larger CUs and match up better with a wider set of CU decision-makers. 3. Broaden our geographic marketplace and build additional regional intensity to expand where we are doing business. 4. Leverage our capabilities, talents, and software copyrights to expand into other businesses, both inside and outside the credit union industry. Where We’ll Focus in 2013 Projects and Efforts That Focus Us as Visionaries Projects and Efforts That Focus Us as Challengers Projects and Efforts That Focus Us as Game Changers Projects and Efforts That Focus Us as Visionaries 9 Back to Wikipedia again: Visionaries: “Prophets, Thinkers, Futurists, Dreamers” Not hocus pocus...think “thought leaders” and “thought leadership” An organization becomes what it studies...to be successful, an organization needs to study opportunities with more zest than problems Technical teams are great at studying and earning certifications for their careers...can we find a new way to study together as an organization to yield new results for our business development goals? Projects and Efforts That Focus Us as Visionaries Taking Our Business Plan Viral 10 We have some projects for helping our clients take their business plans “viral” to their members and community What about our own business plan? Shared with cuasterisk.com partners Posted on Portal for employees What about www.cuanswers.com? I’ll be soliciting “20 Commentators” to read and commend on our Plan (non-Board credit union CEOs, industry stakeholders) Let’s see if we can encourage others to become visionaries, challengers, and game changers Projects and Efforts That Focus Us as Visionaries Taking Our Business Plan Viral 11 Check out a new segment on score.cuanswers.com Projects and Efforts That Focus Us as Visionaries Taking Our Business Plan Viral 12 Check out a new segment on score.cuanswers.com Projects and Efforts That Focus Us as Visionaries Taking Our Business Plan Viral 13 Check out a new segment on score.cuanswers.com Projects and Efforts That Focus Us as Challengers 14 Rethinking CU*BASE trademarks and marketing to inspire new efforts within our network CU*BASE “Editions” GOLD Servicer Edition (SE) Cloud (or, more likely, “Evolution”) Operations ...and what about smaller “modules” like groups of menus (ERM) or other segments? Projects and Efforts That Focus Us as Challengers 15 Challenging the way our teams have grown CU*Answers 5 Year Growth 10/1/2008 through 9/30/2013 Department 10/1/2008 Administration/Facilities 5 Adminsitration: Xtend 1 Client Services 13 Conversions 4 CU*Answers Management Services 11 CU*Answers Network Services 15 Finance 5 Item Processing 14 Operations 9 Organizational Resource Development 3 PR and Marketing 1 Programming 19 Quality Control 4 Sales 4 Technical Resources 1 Writing Team 3 CU*Answers Total 112 10/1/2009 6 1 14 5 15 17 6 6 9 3 2 21 5 5 1 3 Change in # of Employees 2009 1 0 1 1 4 2 1 (8) 0 0 1 2 1 1 0 0 10/1/2010 6 1 14 4 20 20 7 6 10 5 1 27 4 5 1 3 119 7 134 Projected Projected Projected Budgeted Anticipated Change in # of Change in # 9/30/2012 from Change in # of 9/30/2013 from Change in # of Change in # of Employees of Employees the Midyear Employees the Annual Employees Employees over 5 Year 2010 10/1/2011 2011 budget 2012 budget 2013 5 years Growth % 0 6 0 7 1 7 0 2 40.0% 0 1 0 1 0 1 0 0 0.0% 0 15 1 16 1 16 0 3 23.1% (1) 4 0 4 0 4 0 0 0.0% 5 28 8 31 3 32 1 21 190.9% 3 27 7 31 4 33 2 18 120.0% 1 8 1 9 1 9 0 4 80.0% 0 6 0 5 (1) 5 0 (9) -64.3% 1 11 1 12 1 11 (1) 2 22.2% 2 5 0 5 0 5 0 2 66.7% (1) 1 0 1 0 1 0 0 0.0% 6 33 6 35 2 38 3 19 100.0% (1) 6 2 8 2 8 0 4 100.0% 0 4 (1) 5 1 5 0 1 25.0% 0 1 0 1 0 1 0 0 0.0% 0 4 1 4 0 5 1 2 66.7% 15 160 26 175 15 181 6 69 61.6% 58.3% 100.0% 68.8% Leased Employees: Xtend Leased Employees: Xtension 12 4 12 3 0 (1) 12 3 0 0 15 4 3 1 19 8 4 4 19 8 0 0 0 7 4 Xtend Leased Total 16 15 (1) 15 0 19 4 27 8 27 0 11 -100.0% -100.0% Leased Employees: eDoc 3 1 (2) 0 (1) 0 0 0 0 0 0 0 (3) eDOC Leased Total 3 1 (2) 0 (1) 0 0 0 0 0 0 (3) 131 135 4 149 14 179 30 202 23 208 6 77 0 Grand Total Things to consider: * the table above does not include any of the part time staff that works directly for Xtend (they currently have approximately 10 and they share cubes) * as of 7/31/12 we had a total of 194 employees on payroll 58.8% Projects and Efforts That Focus Us as Challengers 16 Challenging the way we earn our money from growth Avoid incremental and momentum based thinking Avoid investment without harvesting Avoid compensating business developers to the point where their goals control the growth more than the goals of the organization Working with CMS to review the 3 areas where business grow: Growth from new CU*BASE GOLD sales – their role and how they earn Growth from existing CU*BASE GOLD clients – how they turn support into new annual revenues Growth from new markets and taking their brand outside the network – can we move from moonlighting to more traditional business development and investment? Projects and Efforts That Focus Us as Challengers 17 Challenging our pricing and competitive practices Marketing concessions are signaling a shift in how we sell CU*BASE GOLD Challenging our industry’s status quo: building challengers among our clients and partners Cooperative Score (part 1) – the Cooperative Score Self Assessment Viral Business Plan – Add “Read our business plan” link to It’s Me 247 Use “Vote Now” to get real results from surveys What else? Projects and Efforts That Focus Us as Game Changers 18 “Why should I invite CU*Answers to be part of my agenda?” “Because we’re game changers. We may be the missing ingredient that will help you succeed.” A reputation that our network, our firm, and our team members need in order to be successful Projects and Efforts That Focus Us as Game Changers 19 What will it take for CU*Answers to build a network with the reputation of being game changers? Is this a marketing problem? Is this an opportunity issue? Can we find areas where we can make a real difference and be known for this? Is this an issue of influence? Can we really influence our industry, our clients, and our partners to merit the reputation as game changers? Projects and Efforts That Focus Us as Game Changers 20 Is this a marketing problem? Build brands and raise the awareness ... tell the marketplace we believe we are game changers Evolve our website persona and leverage content in a new way Is this an opportunity issue? Create opportunity to be seen as game changers: get into the right rooms Chip’s challenge: “What expertise does your team have that can get you to national events? What outlets do you have? What capabilities do you have?” Projects and Efforts That Focus Us as Game Changers 21 Is this an influence issue? Become a reference as an organization where e-document strategies have made a difference Influencing through investing in other firms and their initiatives, partnered with ours Influencing the outcome of projects through participating in industry initiatives It’s a delicate balance tactically to want to be invited and then, once there, to do the right thing Projects and Efforts That Focus Us as Game Changers 22 Building game changers among our clients and partners A “Grand Opening State of Mind” Tweak our processes (Product Team) Develop marketing and sales support services focused on re-launches (CIMT/Xtend) Rethink the Peer Analysis/Learn From a Peer Develop marketing and sales support for launching directly to credit union members (GOK) Cooperative Score (part 2) – showing that customer-owner participation can be a game changer for a cooperative. CUSO Financial Services, Inc. (CFS) Changing the game for our cuasterisk.com partners Delivering on Our Promises Every year our clients, the marketplace, and our teams anticipate the next step in our day-to-day evolution Here’s where we will focus in 2013... Improving Our Solutions (What We Sell) 24 Improving Our Competitive Position Accounting Top 10 Lender*VP Top 10 Not taking a quiet audience for granted Improving our reference with CFOs, accountants and bookkeepers The next step in what we learn from Xtend SRS Continuing to deliver on the promises made to stick with lending until we get it right and until our credit unions are maximizing our toolkit and network potential File Expansion Project (FEP) and Improved Next Generation (ING) Laying the foundation for the inevitable Gaining the confidence of your clients that you can execute change Improving Our Solutions (What We Sell) 25 Improving Our Competitive Position Establishing Mobile App Integrations and Support It’s the craze...the whole world is moving to mobile! What are we doing? Answering our clients’ challenge not to be left behind Balancing the need to study where all this is going against the investment into proofs of concept ...and don’t forget Teller Platform – delivering on the Currently Serving foundation Aggregation – building a stronger relationship with MoneyDesktop CU*BASE GOLD Look and Feel (ING) – will deliver on 2012 goals EFT – anyone remember what a C2B2B model means? Improving Our Solutions (What We Sell) 26 Where We’re In the Lead It’s Me 247 Nav-01: Launching January 2013! Tiered Services next phase Getting credit unions to see Tiered Services as more than just a relationship management tool Still valuing it for its unique ability to automate relationship management all the way to the point of sale Analytics: Actionable Analytical Approach (AAA) Using pretty pictures to keep our audience engaged, while changing the foundation to ensure this product can evolve dozens of new capabilities It could take a couple of years of a grand opening mindset to really make a difference with credit unions, beyond the initial wow factor ...and don’t forget Compliance tools Online and mobile Improving Our Solutions (What We Sell) 27 Our Clients Under Pressure Responding to credit union investments in ancillary products that require core integration Helping new and larger clients who have made an investment in third-party products (Verifin, Meridian Link, Marquis, SageWorks, etc.) Avoiding the trap of relying in integration revenues: we’ll do these as investments in learning, more than a way to earn a quick buck Improving Our Business (Supporting What We Sell) 28 DR/BR: Capitalizing on a New Mindset Release Management and the Speed to Market Paying for beta-test Paying for product certifications Building Processes for Across-the-board Reinvestment RFPs (i3 & AnswerBook, no change; online education moving to CU Training 11/30/12) F&E procedure Meet & greets for new employees, Sales Planning meeting, cuasterisk.com administrating meeting Improving the Collaborative Environment (CU Business Models, Infrastructure, and Non-CU Partners) 29 Driving cuasterisk.com CU*Answers Connected to the World Connecting Networks for CU Income Opportunities Lender*Hub SSO connections CFS, Ross Blair, denied loan exchange? CU*BASE SE (the CU*BASE Servicer Edition) Conclusion “What are your expectations when you publish a business plan?” I don’t mean what’s in it, I mean what do you hope to accomplish by publishing it? If we take this thing viral, what does that mean to our future, our opportunities and our success?