Practical Ways Analytics Can Transform Your Credit Union · Practical Ways Analytics Can Transform...
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PracticalWaysAnalyticsCanTransformYourCreditUnionPresentedbyScottMcClymondsofCEOVelocityConsulting
AdvancedLeadershipandAnalyticsSystems
OnBehalfoftheTennesseeCreditUnionLeague
SpecializinginLeadershipSystemsandBusinessIntelligenceHelpingFIsusebusinessintelligenceto:
§ Increasememberloyaltyandprofitability
§ Improveemployeeproductivityandjobsatisfaction
§ Provideleadershipwithbest-practicemanagementprocesses
§ FrequentcontributortoCUManagement (CUES)andCUBusinessCopyrightCEOVelocity2017 2
Strategy
ExecutionInsights
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Agenda
“Everythingrisesandfallsonleadership.”~JohnMaxwell
• WhatisBusinessIntelligence(Analytics)andHowDoesitHelp?• RealWorldClientExamples• ExecutiveInfluence• FourPracticalExamples• NotEveryoneisaBeliever(CommonObjections)• HowCanMyCreditUnionSucceedatAnalytics?• Q&A/Takeaways
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What Is Business Intelligence (Analytics)?
Theapplicationofinformationandtechnology tohelpcreditunionscompetemoreeffectivelythrough:
• Improvedunderstandingofmemberneedsandbehaviors• Increasedemployeeefficiencyandeffectiveness• Streamlinedprocesses• Betterallocationofresources
AnalyticsisAboutPeople• Thoroughlyunderstanding
• Theneedsandgoalsofyourmemberssoyoucanhelpthemachievethem
• Yourmarketsandcommunitiessoyouknowwhoneedstobehelpedandhow
• Howyouremployeescanmosteffectivelyservemembers
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CreatingaHighVelocityCreditUnionIngeneral,leadershipprovidesdirection,andemployeesandsystemsprovidethespeed.Theymustworktogetherlikeachampionshipteam.
Leadership
SystemsPeople
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StrategicAlignment
KnowWhoYouAre
Strategy
MemberNeeds
MemberExperience
Communicate
FocusedExecution
Measure
Innovate
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BusinessIntelligenceImpactstheWholeCUTheEightPillarsofStrategicAlignment
Leadership
SystemsPeople
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Case Study 1: Well Defined Analytics UsesProposedPhase Client1 Priorities
A • CommercialDeposits• LendingOfficerPerformance• MostProfitableCustomer
B • GrowthinWealthManagement• Fee IncomeAnalysis• BeginFinancialReporting
C • Deposit Retention• FinishFinancialReporting
D • TotalChannelTransactions
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PhaseA Data:
CustomerAccountsLoanPortfolioData
Deliverables:HybridofCustomer360andPerformanceInsightQlikSensetemplatesFoundationalQlikSenseSetupandETL
PhaseB Data:
Fees&WealthBeginFIReporting
Deliverables:WealthmgmtDetailedfeeanalysisSelectfinancialreportsN-PrintingSoftware
PhaseC Data:
DetailedCoreTransactionGrainAccountingRelatedDeliverables:DepositretentionalertsTransactionAnalysisDashboardSelectfinancialreports
PhaseD Data:
AdditionalTransactionsfromNon-coresolutions
Deliverables:CustomerchannelanalysisActionnoticesbasedonconsumerbehavior
CustomerandLendingOfficerPerformance
FeesandWealth
Management,ReportingPartI
Retention/CustBehavior
Analysis,ReportingPart
II
TotalChannelAnalysis,Action
notices
A B C
60-90days
Training
OverallArchitecture
BusinessAnalysis
DataAnalysis
Focus
Est.
ROI
Increasingcapability,increasingvaluetotheorganization
TechnicalStrategy
Projectphasesthatdelivervaluetothebusinessonaregularcadence.
Preparationand
Architecture
@30days
BusinessIntelligenceRoadmapD
60-90days 60-90days 60-90days
CaseStudy2:BusinessIntelligenceforCulturalImpactHelpExecutiveManagementSetDirectionforBranchBanking• GoalsandTimelines
HelpBranchBankingManagementSetActions• Growthinincome,loans,deposits
HelpBITeamMeetNeedsofInternalClients• Gainsomequickwins
GainAdoptionviaSelfServiceResearchEnvironment• Increaseproductivityandefficiency
IngrainAnalyticsIntotheCulture• Trainpoweruserstobecomeevangelists
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SuccessfulBusinessIntelligenceProjectFlow
Adopt,Execute,Adjust:Backtothe8Pillars
Analyze,Question,Strategize:Developplanforresults
Customize:Adaptsoftwaretospecificclientneeds
Translate:Turnbusinessneedsintotechnicalrequirements
Discovery:Interviewbusinessandtechnicalstakeholders
BusinessFramework:DetermineKeyBusinessQuestionsorGoals
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Greg:CEO“Iwanttouseanalyticsnotjusttoimprovereporting,buttoadvanceourabilitytoserveourmembers.Iwanttonowwherethereisuntappedpotential,notjustwherewearenow.I’mlookingforwherewecangoandgrow.
ForourlendersIwanta360degreeviewofallthatthey’redoing,howthey’reengagingthemarket,andhowtheycanbecomebetterathelpingmorepeoplewithouttakingbadrisks.”
Sue:CFO“Weneedeasytousedashboardsthatgivequickaccesstodatabyofficer,branch,timeframes,andenableustoproduceboardandregulatoryreportsquicklyandeasily.Weneedtobeabletodrillintoeachreportfordetails.”
Christy:COO“Iwanttoknowwho’susingallthenewproductsandserviceswe’verolledout,andhowthey’reusingthem.I’dlikesomeonetohelpmeinterpretdatabecausesometimesIdon’tknowwhatIdon’tknow.”
SuccessfulBusinessIntelligenceStartswithEngagedExecutives
TwoForwardThinkingCUCEOsMemberlifeeventstiedtomerchantdiscounts
Memberfinancialhealthandproducts
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JoeNewberry,RedstoneFCU
DougFecher.Wright-Patt CU
• 3,000employees;260branches
• 350,000customerstouchedyearly
• 30,000+newaccountsannually
• $5million+annualnetincome
• Careerpaths
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PracticalExample1:OutboundCallsfromBranches
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PracticalExample2:MigratingProfitGroups
$41millioninnewmortgagesmigratingHighPotentialhouseholdstoHighValue
-40
-20
0
20
40
60
80
100
10 20 30 50 60
%ofP
rofits
%ofMembers
HighValue
Unprofitable
MassMarket
HighPotential
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PracticalExample3:SavingHighProfitMembers
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Toomanyat-riskEndZonemembers
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PracticalExample4:ImprovingLenderPerformance
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CommonObstacles/ObjectionsObstacle/Objection Answer
Wecan’tgetanyonetouseourCRM Findandrewardearlyadopters
It’stoohardtogetdataoutofourcore Companiesspecializeinthis
We’vetriedthisanditdidn’twork Talent andleadershipalwaysmakeitwork
Manyofourpeopleareretiringinthenextfiveyears Willyourcreditunionbehereinfiveyears?
Wehaveasocialmediacompanythatdoesallourdigitalmarketing
Analytics strengthensrelationshipsovertime
Thisisjustoverthinkingthings It isservingyourmembersbetter
Wedon’thavethetalent Outsourcingisagreatoption
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HowDoWeSucceedatAnalytics?StartSimplewithClearGoals
PlanYourObjectives• Don’tover-reach
ChooseYourPartners• Considertheiroverallcapabilities
AdoptandGrow• Leadthroughthegrowthpains
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PlanYourObjectivesDon’tOver-reach
MemberRelationships• Simplecross-sales
FinancialGoals• Growthinincome,loans,deposits
ProcessandCulturalChanges• Supportiveaccountability
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ChooseYourPartnersConsiderTheirOverallCapabilities
Assesstheircommitmenttoalong-termrelationship•Manyjustwanttosellsoftware
Matchtheirexpertisetoyourgoals…easeofuse• Dotheyhaveexpertiseinfinancialservices?
Theymustbeabletohelpyounavigateinternalchange…widespreadadoption• Thetechnologyistheeasypart
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AdoptandGrowLeadThroughtheGrowthPains
Creategoalsaroundmemberprofitgroups• Createavatarswithpictures,involveemployees
Appendeddataconnectsyoutorealpeoplestoriesandthemarket• Helpswithavatarsandbringsoutmaterialdifferences
Planyourbudgetandgrowth• Youwillknowwheregrowthwillcomefrom
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WhatShouldWeDoNext?CreateaPlan forSuccess
1.IfCEOisabeliever,unite executiveteam,createteamandbudget
2.Decidewhoownsitinternally
3.Haveownercreate ateamfromyourCFO,COO,CMO,CIO;havethemdevelopanon-technicalplanorroadmap;mayneedhelpfromanoutsideexpert
4.Your planshouldhavephasessuchas“Addallaccountdata”,“Bringintransactions”,“Createorapproximateprofitability”…youcan’tdoeverythingatonce
5.Findaversatiletechnology andbusinesspartnerwhocanhelpyoumakeitsuccessful
6.Understandsomeemployeeswillfeeluncomfortable; planforit
7.Tiemetricstobonuses,createincentiveplans,careertracks,hiring
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WhatIfWeIgnoreAnalytics?
20,000CUs
6,500CUs ?CUs
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DiscussionandKeyTakeaways1. Doyoubelieveknowingmoreaboutyourmemberscanhelpyou?
2. Ifnot,whatdon’tyoulikeorbelieve?
3. Couldanyoneonyourexecutiveteambeachampionfortheeffort?
4. Whatsizebudgetcouldyouaffordtogetstarted?
5. Howwouldyoupresentthistoyourboard?
6. Whatmanagementoremployeeobjectionsdoyouanticipate?
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ThankYou!
§ CUBusinessleadershiparticlesandCEOinterviews§ CUES/CUManagementeditorials
§ Workshopsandvideos
ScottMcClymondscontactinformation:
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