Solutions Centre’s Role in Strengthening BC Credit

Unions:

“Alignment”Doris Good

Kasia ChudleighJulian Pattison

Sam MalikRolf Lyster

Video: Alignment

http://www.xtranormal.com/watch/12817353/solutions-centre

Competitive Landscape

• The market is a battlefield • The increased costs of technology,

compliance, personnel have put a squeeze on firms that lack scale

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

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

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

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

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.

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

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

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%

Moving forward

Trus

t

28% 28% Lack of commitmentLack of commitment39% 39% Fear, lack of trustFear, lack of trust

Crawl, Walk, Run

A Solid Platform

Lead by ExampleOpen Dialogue

Group Dynamics

“Joined Together”Thesaurus synonyms:

§ Link§ Connect§ Stick together§ Unite

“Self-Sufficient”Thesaurus synonyms:

§ Independence§ Self-reliance§ Self Support§ Autonomy

Vision

How Can Members Feel Safe to Join Forces?

Solu

tion

s Cen

tre

Stated Vision of Solution

Centre…to provide cost effective solutions for the credit unions to enhance and strengthen their business practices and operations

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

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

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

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

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