Solutions Centre’s Role in Strengthening BC Credit Unions: “Alignment”
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Transcript of Solutions Centre’s Role in Strengthening BC Credit Unions: “Alignment”
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Solutions Centre’s Role in Strengthening BC Credit
Unions:
“Alignment”Doris Good
Kasia ChudleighJulian Pattison
Sam MalikRolf Lyster
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Video: Alignment
http://www.xtranormal.com/watch/12817353/solutions-centre
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Competitive Landscape
• The market is a battlefield • The increased costs of technology,
compliance, personnel have put a squeeze on firms that lack scale
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The Value Chain
• Rivals are performing value chain activities more cheaply
• A company should not perform any value chain activity that others can provide more efficiently
Support Services
Operations Marketing and Sales
Customer Service
Margin
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Strategic Alternatives:
Pick your Poison1. Go It Alone2. Acquire Smaller Credit Unions 3. Be Acquired and Assimilate 4. Merge into One Entity but
Maintain Existing Storefront5. À la Carte Shared Services6. Comprehensive Shared Services
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Go it Alone
• Organic growth alone a risky proposition
Strategic AlternativesSmall Tier
Credit UnionsMid Tier
Credit UnionsTop Tier
Credit Unions
Go it Alone
SMART Model: Competitive Analysis
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Mergers and Acquisitions
• Unless small credit unions find a way to increase income and reduce operating expenses, they are in the midst of a slow motion self-liquidation
• Consolidation is forecast to continue
Strategic AlternativesSmall Tier
Credit UnionsMid Tier
Credit UnionsTop Tier
Credit UnionsAcquire smaller credit unions Be Acquired and Assimilate Merge Entities but Maintain Brand
SMART Model: Competitive Analysis
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Shared Services Business Model
Shared services business models are designed to promote efficiency, value generation, costs savings and improved service for all participants through collaborative efforts.
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Current Business Model
À la Carte Shared Services• Economically timely model
• Pockets of collaboration lead to fragmented efforts• Benefits of Economies of Scale
Strategic AlternativesSmall Tier
Credit UnionsMid Tier
Credit UnionsTop Tier
Credit Unions
À la carte Shared Services
SMART Model: Competitive Analysis
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Comprehensive Shared Services Business Model
• Move from independence to interdependence
• Success of Credit Union Service Organization • This one gets you more, but is harder to do –
you must be willing to relinquish some control
Strategic AlternativesSmall Tier
Credit UnionsMid Tier
Credit UnionsTop Tier
Credit UnionsComprehensive Shared Services
SMART Model: Competitive Analysis
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Recommended Approach
• Comprehensive Shared Services• Not limited to back-office functions• You can’t be a strong team
when the players change for every initiative
• Alignment > Numbers 61%61%OK OK
Need Need 100%100%
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Moving forward
Trus
t
28% 28% Lack of commitmentLack of commitment39% 39% Fear, lack of trustFear, lack of trust
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Crawl, Walk, Run
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A Solid Platform
Lead by ExampleOpen Dialogue
Group Dynamics
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“Joined Together”Thesaurus synonyms:
§ Link§ Connect§ Stick together§ Unite
“Self-Sufficient”Thesaurus synonyms:
§ Independence§ Self-reliance§ Self Support§ Autonomy
Vision
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How Can Members Feel Safe to Join Forces?
Solu
tion
s Cen
tre
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Stated Vision of Solution
Centre…to provide cost effective solutions for the credit unions to enhance and strengthen their business practices and operations
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True North
What is Their Ultimate Goal?
• Specific to the organization
• Communicate Philosophy
… such as caring, cooperation and community
• Create a visual image of where you are going
• Differentiate you from your competitors
…Inspirational
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Achieve Buy-in
• Seek alignment to accomplish efficiency in operations• Increased competition:
Reduce cost without compromising quality• Develop overarching strategy and
common vision through Lean Management
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Share Information
• Information sharing tools and techniques required• SharePoint: share, store and manage information• Reinforce individual brands, but strengthen
philosophy of products and services jointly
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Continuous Improvement
• Collaboration is not a static process:it requires continuous improvement
• Strategy to achieve a higher-level goal• Collectively support decisions made by members
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Concluding Call To Action
• Many BC credit unions are operating independently with an unsustainable business model
• Big problems require commensurately big solutions• It is time to transition from crawl to walk and run • This will enable more cohesive and
pronounced action