If you’re like most in the credit union movement, you might think the only thing Quantum Governance is good at is governance. But we know a thing or two about strategy, too.
Why is that? Because strategy is a governance issue. Further, it is perhaps one of the most important governance issues.
Strategy Is A Governance Issue
Your credit union should develop its strategic plan in constructive partnership between the board and the CEO/senior management. Does that mean your board members should be meeting with the CEO and their direct reports to hash out departmental goals and operational tactics? Of course not. But there are two models of strategic planning — the corporate and the not-for-profit — we would like you to consider:
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- The corporate model calls for the CEO and senior management to develop a draft plan — which includes the credit union’s vision, mission, values, overarching goals, and strategies — and then present these to the board for its review, consideration, and, potentially, a bit of editing before the board gives its final blessing.
- The not-for-profit model calls upon the board, CEO, and senior management to work in constructive partnership on these elements. The benefit of this model is that the board members end up feeling like it’s their plan, too, not just the CEO’s; thus, the buy-in is built-in.
Once the board approves the strategic plan, the CEO works with senior management to develop those departmental goals, operational tactics, and metrics — elements the CEO will use to manage the credit union on a day-to-day basis.
Strategy Is More Than Next Year’s Business Plan
If your strategic plan includes any of the following, you need to change it … now: delivering an “excellent” call center experience, remaining an employer of choice, or even ensuring the safety and soundness of members’ assets.
We’re serious. Start over. Immediately. These are the things you should be doing every day, week, month, and year. Forever.
They aren’t bold.
Or visionary.
And although they are necessary components of how you conduct your business, they are not going to help you achieve your vision and mission.
Think big. If you are state chartered, should you consider a federal charter so you can serve a broader audience? Should you take on an aggressive M&A strategy? Even considering community banks, not just credit unions? Could investing in and/or launching a series of CUSOs be a growth strategy for your credit union? What about authentically embracing a modified triple bottom-line — your credit union’s financial interests, those of your members, and the communities you serve?
Ultimately, yes, you need annual business plans, but do not be lulled into complacency. A true strategic plan is the choices, actions, and investments that will propel your credit union to mission success.
Strategy Is Ever Evolving
If there’s one thing we’ve learned over the years, it’s that the pace of change is speeding up rather than slowing down. Successful organizations not only understand this truth but also embrace it.
Gone are the days when a three- or five-year strategic plan could be developed over a two-day retreat and then executed from start to finish. Today’s business and societal environments just don’t allow it. Agility (through collaboration and flexibility) and nimbleness (reacting quickly and efficiently) are required for success today and likely long into the future.
The same is true for credit union strategic plans. We recommend a flexible, cyclical planning model. This is not to suggest your credit union should change its strategic plan (again, versus its business plan) every quarter or even every year, but you need a model where it could. Build a model that accounts for multiple future states and includes contingencies.
Build a model where changes to your strategic plan are driven by changing conditions — not a pre-set schedule — and where you and your colleagues (whether in senior management or on the board) are constantly evaluating progress along the road to success. You might opt to change your goals mid-journey because of an emerging pandemic or rapidly rising (or falling) interest rates. You might accomplish some goals sooner than you planned; other goals might take more time and resources than anticipated.
And this is all fine — assuming you are regularly attentive to how things are changing, making adjustments as needed, and planning for these types of evolutions. Indeed, embrace these evolutions to your plan because they are propelling your mission forward.
When your strategic plan includes substantive input from both the board and CEO/senior management, your credit union will benefit from a visionary, long-term-yet-flexible program that includes preparation for multiple contingencies and lays the foundation for targeted and responsive business planning.
Jennie Boden is CEO of Quantum Governance. Ms. Boden has more than 30 years of experience in the credit union and nonprofit sectors and served as the chief staff officer for two nonprofits before coming to Quantum Governance.
Quantum Governance provides credit unions, corporations, nonprofits, associations, and governmental entities with strategic, cost-effective governance; ethics and management consulting; facilitation; and evaluation. With more than 60% of Quantum Governance’s clients representing credit unions, Quantum Governance is home to more strategic governance experience than any other practice in the country. The firm is a unique L3C organization that integrates the best elements of both the for- and non-profit communities into one practice. It is a low-profit, limited-liability service organization dedicated to the public good.
