DCUL’s Strategic Planning Service

What is strategic planning?
Strategic planning is a systematic process that enables your Board (and Committee) members to have discussion and reach agreement on where you want the credit union to be in the next 3 to 5 years. It is one of the best things that Board members can do for their credit union, because it provides a sense of direction and the means to getting there.

How will it benefit my credit union?
Each credit union benefits tremendously based on the unique make-up of its Board and members. If you have new members, it helps to unify the group and clarify their roles and responsibilities. With a mature Board, the session opens up the communication to industry information, creative ideas, and possible solutions that may not be discussed at regular Board meetings.

Every credit union comes away with its own specific goals, objectives, and strategies that will guide its course over the next several years.

Why get involved?
The competition to gain employees' financial business is intense. NCUA is placing greater emphasis on each credit union's ability to anticipate risk and manage growth. DCUL acknowledges that leaders need to stay focused on economic and environmental issues and determine what impact they will have on managing the credit union going forward.

Why change now?
Things that worked in the past may not be as effective in the future, given the dramatic changes within the financial services industry. Banks, brokerage firms, insurance companies, auto dealers, retailers, and others are competing aggressively for your member's financial business.

What are some of your current issues?
With FOM changes, declining loan to share ratios, the need to increase members and attract volunteers, there are more than enough reasons to consider strategic planning. Changes in any of the following areas provide an excellent opportunity as well:

• product penetration,
• products and services,
• marketing and PR,
• capital position,
• business development,
• new technology,
• customer/member relationship management (CRM),
• branding or name change,
• succession planning,
• physical office/staffing needs, or
• charter conversion

How do you measure success?
Success is only partially measured by how effective the planning session is. Real success is based on executive leadership's commitment to implement the goals and strategies. Unfortunately, this is where a large number of strategic planning programs break down. Early on in the planning process, the credit union needs to anticipate what steps it will take to make sure this doesn't happen.

What are some things to consider before committing to a planning session?
Is there a budget? Do you use someone from the credit union or hire an outside facilitator? When and where should we have it? How long should the session be? How do we structure the session?

• Who should facilitate? If you decide on someone outside the credit union you may incur a cost/fee. They are likely to be more objective, focusing on the process rather than getting bogged down with the issues. They should have experience within the financial services industry - the broader, the better. They should understand group dynamics and be able to apply various methods to involve all Board members and work through any potential conflicts.
  
  
• If you use someone within the credit union, it is unlikely that there will be extra cost. They will be familiar with the credit union, its culture, strengths, issues and objectives. Their knowledge of the industry/movement may be limited to credit unions and if so, he or she may not have a broad enough view of the financial services industry. The individual may not have expertise in group dynamics.
  
• When and where should we have it? Determine the best time to get your Board together. Balance this with what needs to be accomplished, your expectations and objectives. The planning session can be held onsite or at a remote location (hotel, league, etc.).
  


• How should the session be structured? First, decide what your objectives are for the session. Is this the credit union's first experience, or is formal planning done on a regular basis? The structure and length of your session should be based on how these questions, and others, are answered.

What should happen after the strategic planning session?
Results of the day's discussions are consolidated into a formal Strategic Planning Report. If certain conditions are met, this can double as a Strategic Plan or even Business Plan. Otherwise, the original data needs to be converted into a Business Plan describing the objectives, goals and strategies for the next year or so. Depending on staff size, the Business Plan can be converted into individual Action Plans to involve all staff in the implementation.

How do we determine its success?
What the credit union does with the results following the planning session is a direct measurement of its true success.

To ensure the health, vitality and future growth of your credit union, consider strategic planning as an essential part of your planning and business strategy. It remains "one of the best things that a Board can do for its credit union."

For information on setting up a strategic planning session for your credit union, contact Jane Bailey, (800) 292-7875 or jane@dcul.org.