Windshields Are Bigger Than Rear-View
Mirrors For A Reason
Hint: Thrive In The Shift
Tectonic Shifts
Socio-Economic Issues
Demographic Issues
Macro-Economic Issues
Geo-Political Issues
Fiscal Policy
Monetary Policy
Technology Advancements
We Have A Couple of Hours…Here’s The Punchline
Can you and your team distinguish between “temporary disruption” and
“fundamental change?”
Do you sense a “strategic inflection point” in our industry?
Have you assessed why your successful at growth to date and how to
stay on the growth curve?
Are you a “risk-taker” or not?
Do you “leverage your resources” or accumulate them for the benefit of
NCUA?
Temp Disruption or Fundamental Change?
Firms outside of our industry are wielding new technology
and as a result are competing with credit unions
Younger markets are more socially conscious & concerned
with business’ having a moral obligation to society
The velocity of change is so fast that you can’t wait for things
to stabilize
Temp. Disruption or Fundamental Change?
The velocity of change has zero regard for the timing of your
planning session.
The consumer has been liberated and is in charge.
Your decisions will be judged in the court of public opinion.
You must now consider all those who have no membercentric interest in your business---regulators; watchdogs; the
media.
The Most Effective Leaders
Alchemists: Generates Social
Transformation
Strategists: Generates Organizational &
Personal Transformation
The Most Common Leaders
Experts: Logical & seeks rational efficiency
Achievers: Meets the goals set by strategies
Who Did Not Thrive In The Shift…
Sears
Kodak/Polaroid
Sony
Dell
Microsoft????
Cable TV Providers
Anheuser-Busch
Montgomery Wards
Who Thrived In The Shift
IBM
Xerox
Sirius
McDonalds
Netflix
CNN
Verizon
Lending Club
The Progression of Our Economy
Agrarian
Industrial
Service
Technology
Experience
Think “Go-Pro”
Have a clear vision for what you’re aiming for
Check your mission:
Hint: It’s not about cameras & camera mounts
Mission Statements need a once-over
• Ritz Carlton – Ladies & Gentlemen serving Ladies & Gentlemen
• Micro Soft – Information at your fingertips
• Google – Saving the world time
• Health Tap – Save lives
• Experience Baby!
Using Your Data To Meet Needs
Service & knowledge (Big Data) came together to form
experience
Positive experiences creates strong emotional quotient
Brand strengthens & Company “thrives in the shift”
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25
20
15
10
5
0
-5
1
2
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Profit
Deposits
Loans
Usage
9
10
Getting Started With This Big Idea
Culture is more important than product. If you take care of your
people, profit will come.
 Create a vision
 Inspire your employees
 Innovate effectively
 Stay close to members
A Really Big Idea…Simple but Big
You must care …….
People don’t love companies, they love products
& people that create experience.
You must be honest, humble, empathetic & show
responsiveness to their needs.
Ask These Questions Early & Often
Why are we doing this?
What do people really care about?
How might we ____________?
What if we did it this way?
Why not?
What if our DQ & Charge-offs were higher but so
were our earnings?
Why can’t checking accounts be ordered like burgers?
Listen to your market…They’ll tell you
What if we could map the DNA of music? (Pandora)
Why can’t everyone accept credit cards? (Square)
Why are football players not urinating more? (Gatorade)
Why can the unbanked not receive better pricing? (RedDough)
Why can’t I get a loan? (Lending Club)
How come I can’t get funding for my idea? (Crowdsource)
Keep listening…They have a lot to say
Why do we have to wait for our pictures? (Digital)
Why do I have to get out of my car for a loan? (Drive-Thru Lending)
What if gas prices & the environment become problems? (Tesla)
6% Us
94% Them
So as a re-cap…
Care & Listen
After listening…Then what?
Determine if what you’ve heard is a
“temporary disruption” or a “fundamental
change.”
Is this “clutter” or are we in the midst of a
“strategic inflection point?”
More Ideas On “Thriving In The Shift”
You need to understand the difference between
temporary disruption and fundamental change
You need to take short-term hits to performance
to gain long-term advantage
You need tools and analytics
You need organizational protocol
More Ideas On “Thriving In The Shift”
Have a brain and a soul
Maintain your mission, reputation and your people
Blend capitalism with activism
Have perceptual acuity
Think through first order, second order, third order
consequences
Be part tactician, part psychologist, part riverboat
gambler
What about the curves within the curve
What is Happening on the Growth Curve?
You are “Essential & Significant” in peoples lives by
solving their problems, their habits, & their needs.
Compliment their daily lives. Ask Questions!
You are “Unique” & have a differentiator that
matters.
You have great people doing great things.
3 Traps To Avoid
1) The Physical Trap
Big investments in old systems prevent the pursuit of fresher,
more relative investments
2) The Psychological Trap
Leaders fixate on what made them successful and fail to notice
what is new…and that new is displacing them
3) The Strategic Trap
Don’t just focus on the marketplace…anticipate the future
Be Careful
What “you’re really good at” was your differentiator
and now it is the “ol’ ball & chain.”
You know the worn out line… “the way we’ve always
done it.”
Pride is a “Bureaucratic Blockade”
If you say… “but we’re really good at it…”
You may have a problem…
Being Risk-Averse Is Very Costly
1. Everything has a risk!!! We can’t eliminate it we can
only mitigate it.
2. Today is not especially more risky than any other
time.
3. Risks are exaggerated by opinion shapers.
4. Obvious solutions are often the wrong ones.
5. Not finding risk doesn’t mean there isn’t one.
6. Reducing one risk may lead to another.
•Somebody thought that the idea of handing
hamburgers out of a window was stupid.
•Somebody thought moving packages around
the country overnight was a stupid idea.
Why Memphis?
The Big Question At This Year’s Planning Session
“How do you spread something good from the few
to the many – or from those with to those
without.”
The meaning of a successful Co-op!
Be Like J. Wellington Wimpy
Leverage Your Resources…
Talent
Capital
Business Partners
Technology
Public, Private and Philanthropic Opportunities
The End!!!
Have A Great Day?