Solutions Centre’s Role in Strengthening BC Credit Unions: “Alignment”

Solutions Centre’s Role in Strengthening BC Credit Unions:“Alignment” Doris Good Kasia Chudleigh Julian Pattison Sam Malik Rolf 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 Support Services Operations Marketing and Sales Customer Service Margin Rivals are performing value chain activities more cheaply A company should not perform any value chain activity that others can provide more efficiently

Strategic Alternatives: Pick your Poison Go It Alone Acquire Smaller Credit Unions Be Acquired and Assimilate Merge into One Entity but Maintain Existing Storefront À la Carte Shared Services Comprehensive Shared Services

Go it Alone Organic growth alone a risky proposition

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

Shared Services Business Model Stronger Together Shared services business models are designed to promote efficiency, value generation, costs savings and improved service for all participants through collaborative efforts.

Current Business ModelÀ la Carte Shared Services Economically timely model Pockets of collaboration lead to fragmented efforts Benefits of Economies of Scale

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

Recommended Approach Need 100% 61% OK 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

Moving forward 28% Lack of commitment 39% Fear, lack of trust Trust

Crawl, Walk, Run

A Solid Platform TRUST Lead by Example Open Dialogue Group Dynamics

“Joined Together” “Self-Sufficient” Vision Thesaurus synonyms: • Link • Connect • Stick together • Unite Thesaurus synonyms: • Independence • Self-reliance • Self Support • Autonomy

How Can Members Feel Safe to Join Forces? Solutions Centre

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 • 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 Many BC credit unions are operating independently with an unsustainable business model

Solutions Centre’s Role in Strengthening BC Credit Unions: “Alignment”