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”
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