HCUL 80th Annual Convention May 19, 2018
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Transformation & Strategic PlanningEconomic Realities for Our Members and How We Must Play to Win
In 2010The wealthiest 388 people shared wealth equal to the poorest half of the world’s population Source: Oxfam, 1/10
HCUL 80th Annual Convention May 19, 2018
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© Credit Union National Association 2017. All rights reserved.
Issue is not just global: our middle class is losing ground
29%
49%
60%
43%
10% 9%
1970 2015
Share of Aggregate Income Held by Middle-Income Americans has Plunged
% of U.S. Aggregate HH Income
Upper Middle Lower
See: Pew Research Center. The American Middle Class is Losing Ground. Dec. 9, 2015.
HCUL 80th Annual Convention May 19, 2018
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Emergency? $400 a challenge for nearly half
of US householdsSource: Federal Reserve
31% of non-retired have no retirement savings or pensionSource: Federal Reserve
HCUL 80th Annual Convention May 19, 2018
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Driving a change agenda5 keys to getting it done
The whoAn organization needs clarity and focus through a deep understanding of and empathy with your perfect prospective member
HCUL 80th Annual Convention May 19, 2018
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BHAG with a heartDefine an aspirational stretch goal for your credit union organization by articulating your ideal future and set specific benchmarks to measure
Strategy Make strategy part of your day-to-day thinking and embed that thinking in the culture
HCUL 80th Annual Convention May 19, 2018
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Explore (and experiment)Take risks and embrace problems then explore, iterate, and experiment with potential solutions
Execute (with excellence)Enable the execution of strategic decisions by bringing in execution expertise
HCUL 80th Annual Convention May 19, 2018
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Strategy is an integrated set of choices about winning and to win you must focus and determine what not to do
© Credit Union National Association 2017. All rights reserved.
Playing to Win versus Playing to Play
• Starts with people rather than money—what does it mean to win with our customers?
• Has a competitive dimension—who are we winning against?
• Doesn’t have a winning element but focuses on simply serving a customer segment
• Is focused on an internal metric, such as “We’ll sell 25% more than we did last year”
PLAYING TO WINPLAYING TO WIN PLAYING TO PLAYPLAYING TO PLAY
HCUL 80th Annual Convention May 19, 2018
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Let’s start with some case studies
© Credit Union National Association 2017. All rights reserved.
What are the key 5 questions a good Strategy needs to answer?
What is our winning aspiration?
Where will we play?
How will we win?
What capabilities must be in place?
What management systems are required?
source A.G Lafley & Roger Martin
HCUL 80th Annual Convention May 19, 2018
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© Credit Union National Association 2017. All rights reserved.
1960s
CHOICE 1:Invest to reinvent
Oil of Olay, turning it into a winning
brand.
CHOICE 1:Invest to reinvent
Oil of Olay, turning it into a winning
brand.STRATEGIC PROBLEM:
How to become a
global leader in skin care
STRATEGIC PROBLEM:
How to become a
global leader in skin care
CHOICE 2: Shut down
Oil of Olay and invest in another skin-care brand.
CHOICE 2: Shut down
Oil of Olay and invest in another skin-care brand.
A strategic choice
HCUL 80th Annual Convention May 19, 2018
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© Credit Union National Association 2017. All rights reserved.
CHOICE 1:Invest to reinvent
Oil of Olay, turning it into a winning
brand.
CHOICE 1:Invest to reinvent
Oil of Olay, turning it into a winning
brand.STRATEGIC PROBLEM:
How to become a
global leader in skin care
STRATEGIC PROBLEM:
How to become a
global leader in skin care
CHOICE 2: Shut down
Oil of Olay and invest in another skin-care brand.
CHOICE 2: Shut down
Oil of Olay and invest in another skin-care brand.
POSSIBILITY 1: Transform Olay into a Premium Brand
Move Olay upmarket by targeting younger women and offering products that fight earlier and multiple signs of aging.
POSSIBILITY 2: Extend an Existing Brand into Skin Care
Extend one of P&G’s winning brands, like CoverGirl, into skin care.
POSSIBILITY 3: Acquire Another Skin-Care Brand
Buy a leading global skin-care brand and integrate it into the P&G family.
Generate possibilities
© Credit Union National Association 2017. All rights reserved.
Strategic CascadesOrganizational LevelOrganizational Level
Business Unit or Strategic GroupBusiness Unit or Strategic Group
Functional Units or Individual Business Lines
Functional Units or Individual Business Lines
How to Win
Management Systems
WinningAspiration
Capabilities
Where to Play
How to Win
Management Systems
Winning Aspiration
Capabilities
Where to Play
How to Win
Management Systems
Winning Aspiration
Capabilities
Where to Play
HCUL 80th Annual Convention May 19, 2018
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First though you really must understand your WHO
© Credit Union National Association 2017. All rights reserved.
Perfect Prospective Member
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