Windshields Are Bigger Than Rear-View Mirrors For A Reason

Hint: Thrive In The Shift

Tectonic Shifts

Socio-Economic IssuesDemographic IssuesMacro-Economic IssuesGeo-Political IssuesFiscal PolicyMonetary PolicyTechnology Advancements

We Have A Couple of Hours…Here’s The Punchline Can you and your team distinguish between “temporary disruption” and “fundamental change?” Do you sense a “strategic inflection point” in our industry? Have you assessed why your successful at growth to date and how to stay on the growth curve?Are you a “risk-taker” or not?Do you “leverage your resources” or accumulate them for the benefit of NCUA?

Temp Disruption or Fundamental Change?Firms outside of our industry are wielding new technology and as a result are competing with credit unions

Younger markets are more socially conscious & concerned with business’ having a moral obligation to society

The velocity of change is so fast that you can’t wait for things to stabilize

Temp. Disruption or Fundamental Change?

The velocity of change has zero regard for the timing of your planning session.

The consumer has been liberated and is in charge.

Your decisions will be judged in the court of public opinion. You must now consider all those who have no member-centric interest in your business---regulators; watchdogs; the media.

The Most Effective Leaders

Alchemists: Generates Social Transformation

Strategists: Generates Organizational & Personal Transformation

The Most Common Leaders

Experts: Logical & seeks rational efficiency

Achievers: Meets the goals set by strategies

Who Did Not Thrive In The Shift…SearsKodak/PolaroidSonyDellMicrosoft????Cable TV ProvidersAnheuser-Busch Montgomery Wards

Who Thrived In The ShiftIBMXeroxSiriusMcDonaldsNetflix CNNVerizonLending Club

The Progression of Our Economy

AgrarianIndustrialServiceTechnologyExperience

Think “Go-Pro”

Have a clear vision for what you’re aiming forCheck your mission:

Hint: It’s not about cameras & camera mountsMission Statements need a once-over• Ritz Carlton – Ladies & Gentlemen serving Ladies & Gentlemen • Micro Soft – Information at your fingertips• Google – Saving the world time• Health Tap – Save lives

• Experience Baby!

Using Your Data To Meet Needs

Service & knowledge (Big Data) came together to form experience

Positive experiences creates strong emotional quotient

Brand strengthens & Company “thrives in the shift”

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Profit Deposits Loans Usage

Getting Started With This Big Idea

Culture is more important than product. If you take care of your people, profit will come.

Create a vision Inspire your employees Innovate effectively Stay close to members

A Really Big Idea…Simple but BigYou must care …….

People don’t love companies, they love products & people that create experience.

You must be honest, humble, empathetic & show responsiveness to their needs.

Ask These Questions Early & OftenWhy are we doing this?What do people really care about?How might we ____________?What if we did it this way?Why not?What if our DQ & Charge-offs were higher but so were our earnings?Why can’t checking accounts be ordered like burgers?

Listen to your market…They’ll tell you

What if we could map the DNA of music? (Pandora)Why can’t everyone accept credit cards? (Square)Why are football players not urinating more? (Gatorade)Why can the unbanked not receive better pricing? (RedDough)Why can’t I get a loan? (Lending Club)How come I can’t get funding for my idea? (Crowdsource)

Keep listening…They have a lot to say

Why do we have to wait for our pictures? (Digital)Why do I have to get out of my car for a loan? (Drive-Thru Lending)What if gas prices & the environment become problems? (Tesla)

6% Us

94% Them

So as a re-cap…

Care & Listen

After listening…Then what?

Determine if what you’ve heard is a “temporary disruption” or a “fundamental change.”

Is this “clutter” or are we in the midst of a “strategic inflection point?”

More Ideas On “Thriving In The Shift”

You need to understand the difference between temporary disruption and fundamental changeYou need to take short-term hits to performance to gain long-term advantageYou need tools and analyticsYou need organizational protocol

More Ideas On “Thriving In The Shift”

Have a brain and a soulMaintain your mission, reputation and your peopleBlend capitalism with activismHave perceptual acuityThink through first order, second order, third order consequencesBe part tactician, part psychologist, part riverboat gambler

What about the curves within the curve

What is Happening on the Growth Curve?

You are “Essential & Significant” in peoples lives by solving their problems, their habits, & their needs. Compliment their daily lives. Ask Questions!

You are “Unique” & have a differentiator that matters.

You have great people doing great things.

3 Traps To Avoid

1) The Physical Trap Big investments in old systems prevent the pursuit of fresher, more relative investments2) The Psychological Trap Leaders fixate on what made them successful and fail to notice what is new…and that new is displacing them3) The Strategic Trap Don’t just focus on the marketplace…anticipate the future

Be Careful

What “you’re really good at” was your differentiator and now it is the “ol’ ball & chain.”

You know the worn out line… “the way we’ve always done it.”

Pride is a “Bureaucratic Blockade”

If you say… “but we’re really good at it…”

You may have a problem…

Being Risk-Averse Is Very Costly1. Everything has a risk!!! We can’t eliminate it we can

only mitigate it.2. Today is not especially more risky than any other

time.3. Risks are exaggerated by opinion shapers.4. Obvious solutions are often the wrong ones.5. Not finding risk doesn’t mean there isn’t one.6. Reducing one risk may lead to another.

•Somebody thought that the idea of handing hamburgers out of a window was stupid. •Somebody thought moving packages around the country overnight was a stupid idea. Why Memphis?

The Big Question At This Year’s Planning Session

“How do you spread something good from the few to the many – or from those with to those without.”

The meaning of a successful Co-op!

Be Like J. Wellington Wimpy

Leverage Your Resources…TalentCapitalBusiness PartnersTechnologyPublic, Private and Philanthropic Opportunities

The End!!!

Have A Great Day?