may 17, 2016 cu strategy @ light speed€¦ · michael porter strategy is a set of choices about...
TRANSCRIPT
CU Strategy @ Light Speed Surviving in the Dynamic Financial Industry
Adam Cohen President/CEO
May 17, 2016
Financial industry trends frame this presentation…
but there are two fundamental issues strategic thinkers must address for
future marketplace success
Only 28% OF CONSUMERS ARE LOYAL TO THEIR PRODUCTS AND BRANDS.1
More than 75% OF THE WORLD’S POPULATION WILL OWN A MOBILE PHONE IN 2030.2
SO WHAT?
Consumers are SWITCHERS
Non-traditional options will be DISRUPTERS
Successful CUs must be DIFFERENTIATORS
Emerging (?!) Trends3
• Average individual spends 94 min/day using apps, checking email, and texting up to 100 times per day
• Average individual logs onto mobile banking up to 30 times per month and internet banking 7-10 times per month (33% monitor accounts daily)
• More people access the internet via mobile device than a PC and, in 2016, more than half the planet will own a smartphone with internet access
Emerging (?!) Trends3
• Close to 50% of U.S. lenders take one-quarter or more of their mortgage applications online; 61% of loans through 3rd-party underwriting engines were approved online
• In 2000, 59.5% of U.S. retail payments were made by check; in 2010, only 4.3% [some experts suggest 2021 as a possible ‘zero-check’ horizon]
What if (and when)…
• Digital person-to-person payment and money transfer replaced traditional banking transactions?
• Cash transactions shifted to electronic value cards, debit cards, ACH transfer, and mobile wallets?
What if (and when)…
• Branches ceased to exist …. or were consolidated service centers without brand affiliation (“shared banking” on steroids)?
• Financial institutions became primarily technology providers with banking simply being the utility provided through the technology?
Today’s financial services models, products, and consumer services
won’t get it done tomorrow.
@Light-Speed StrategyTM is a dynamic process about choices to
create sustained success and exceptional value for consumers
today and in the future.
• Evolve from consumer rate-driven to to consumer value-optimization
• Personalize member experience and enable member immersion
• Connect to emotional levers like legacy, hopes, and dreams
• Shift from transactions emphasis to relationships model
• “Switch-proof” by delivering products for members’ lives, not just finances
• Partner with complementary providers as a value-multiplier
• Evolve from employer-employee to partner-contributor philosophy
• Enable intellectual and emotional contribution
• Invest in future-focused workforce competencies
• Reimagine the branch model
• Adopt consumer-adaptive and -inclusive technologies
• Enter the “shared economy” via smart collaboration
run Essential, consistent actions
required to manage and to
improve service delivery
to generate desired
results
change Visionary, distinctive actions
required to transform
performance to create
sustainable success
and value
Run
What is our purpose?
Where are we going?
How will we get there?
What actions will we take?
How will we measure success?
change
run
…we’ve made a commitment to move away from a product-centered business model and focus instead on creating consumer solutions…solutions for a better life.
It’s about celebrating the interaction, not the transaction… Empowering our members by offering competitive products and the resources they need to live life to the fullest.
…dedicated to the personal financial success and aspirations of every member. Making dreams come true.
Leverage technology that builds community and communicates in a personalized way to our members.
Cultivate a strategic culture so team members can facilitate our members’ dreams.
Be a one-stop financial institution of choice by redefining services, products, and channels.
Deliver ever-improving value to our membership through a systematic framework of
organizational alignment and process improvement.
5- to 10-year Objectives 1- to 3-year Actions
5- to 10-year Projections 1- to 3-year Targets
Action plan
Scorecard
Don’t just survive, thrive • Reach beyond member satisfaction to create
consumer relationship value
• Escape the boundaries of traditional financial services models
• Deliver on a strategy to change the business and run the business
The essence of strategy is choosing what not to do.
Michael Porter
Strategy is a set of choices about winning.
Roger Martin
Strategy isn’t what you do when the future is uncertain,
it’s what you do to make it certain.
Adam Cohen [email protected]
303.888.2429
References & Readings
References 1Accenture. The $6 Trillion Opportunity: How Digital Improves Customer Experience. 2015. 2McKinsey & Co. The Consumer Sector in 2030: Trends and Questions to Consider. December 2015. 3King, Brett. Bank 3.0: Why Banking Is No Longer Somewhere You Go But Something You Do. Wiley. 2012.
Readings
Martin, Roger L. and A.G. Lafley,. Playing to Win: How Strategy Really Works. HBR Press. 2013.
McKeown, Max. The Strategy Book. Pearson Education Limited. 2012.
Porter, Michael E. Competitive Advantage: Creating and Sustaining Superior Performance. Simon and Schuster. 2008.
Yoffe, David B. and Michael A. Cusumano. Strategy Rules: Five Timeless Lessons from Bill Gates, Andy Grove, and Steve Jobs. HarperBusiness, 2015.