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Status Quo Is Quazy Status Quo Is Quazy Talk!!!!Talk!!!!

Patrick K. AdamsSt. Louis Community CU

2

The Ultimate GoalThe Ultimate Goal

A Leap In Value Rapidly Earns Buzz & A Leap In Value Rapidly Earns Buzz & Loyalty… And Dare We Say Growth.Loyalty… And Dare We Say Growth.

3

Create A “LEAP” In ValueCreate A “LEAP” In Value

►L---------Love The IdeaL---------Love The Idea►E---------Energy Is KeyE---------Energy Is Key►A---------Audacity Shakes The TreeA---------Audacity Shakes The Tree►P---------Possibilities Are PresentP---------Possibilities Are Present

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GROWTH

SCALABLE ADVANTAGE

RETURN TO MEMBER LABOR OPPORTUNITIES

LONG TERM SURVIVAL

WE HAVE ESTABLISHED INFRASTRUCTURENEED TO DRIVE MORE BIZ THROUGH IT!

COMPETITIVE POSITION

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Business LifecycleBusiness Lifecycle

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Strategic Inflection PointStrategic Inflection Point

►Avoid The “Uh-Oh” PointAvoid The “Uh-Oh” Point

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The Market Is Crowded & We The Market Is Crowded & We Look Like Everybody Else… Look Like Everybody Else…

► CompetitionCompetition► CommoditizationCommoditization► ConsolidationConsolidation► Consumer ViewConsumer View► Contracting MarketContracting Market► Competition vs ConsumerCompetition vs Consumer

Tastes Like Chicken Is Not A Tastes Like Chicken Is Not A ComplimentCompliment

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In A Crowded Market…In A Crowded Market…

►Profits ReduceProfits Reduce►Growth StymiesGrowth Stymies

If supply is exceeding demand, then we If supply is exceeding demand, then we are competing for market share that is are competing for market share that is contracting. contracting.

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A New LogicA New Logic

We Have To Innovate Our “Value We Have To Innovate Our “Value Proposition”Proposition”

►Growth & Prosperity Comes From Growth & Prosperity Comes From InnovationInnovation

► Innovation Is Foundation For SuccessInnovation Is Foundation For Success

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We Can Either Compete…We Can Either Compete…

In A Shrinking Venue In A Shrinking Venue

OROR

By Beating Somebody To SurviveBy Beating Somebody To Survive

OROR

Finding A New Venue With No CompetitionFinding A New Venue With No Competition

Stop Benchmarking To Competition!!!Stop Benchmarking To Competition!!!

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CREDIT UNIONCREDIT UNION VS VS BANKSBANKS

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BANK

BANK

BANK

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Great BIG Ideas!!!!Great BIG Ideas!!!!

I. People Before ProfitI. People Before Profit

II. Service On SteroidsII. Service On Steroids

III. Opportunities To Grow The BizIII. Opportunities To Grow The Biz

IV. Don’t Be Satisfied With IV. Don’t Be Satisfied With SatisfiedSatisfied

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I. People Before ProfitI. People Before Profit

►Culture Eats Strategy For Culture Eats Strategy For BreakfastBreakfast

►Commit To Your Value Commit To Your Value DisciplineDiscipline

►Identify Your “A” PlayersIdentify Your “A” Players►Embrace Creativity, Risk-Embrace Creativity, Risk-

taking, Problem Solving & Fun taking, Problem Solving & Fun

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Identify Your Value Identify Your Value Discipline…Discipline…

►Are We Product Driven?Are We Product Driven?►Are We Operationally Driven?Are We Operationally Driven?► Is It About Service Intimacy? Is It About Service Intimacy?

Successful Companies Are Great At Successful Companies Are Great At One ThingOne Thing

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Mission StatementMission Statementvsvs

Battle CryBattle Cry

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Know Who Drives The BusKnow Who Drives The Bus

►““A” PlayersA” Players►Strong OrientationStrong Orientation►OwnershipOwnership►Why vs What?Why vs What?►Role As Brand Role As Brand

LeaderLeader

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Embrace ChangeEmbrace Change

►PromotePromote Creativity Creativity►Don’t Be A Sissy BabyDon’t Be A Sissy Baby►Have A Kid’s SpiritHave A Kid’s Spirit

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II. Service On SteroidsII. Service On Steroids

►Do A “GAP” AnalysisDo A “GAP” Analysis►Understand The View From The Understand The View From The

Member’s PerspectiveMember’s Perspective►Pricing, Policies, Processes, Pricing, Policies, Processes,

ProductsProducts►Build Relationships---Stop Build Relationships---Stop

Processing Transactions Processing Transactions

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BrandBrand

Business Silos Brought Together

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Member Expectations

Clo

se G

aps

Close G

aps

Close Gaps

CU Deliverable

CU Promise

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III.Opportunities To Grow The III.Opportunities To Grow The BizBiz

►Find New MarketsFind New Markets►Understand The Consumption Understand The Consumption

ContinuumContinuum► Identify Life Stage OpportunitiesIdentify Life Stage Opportunities►Embrace Lifetime ValueEmbrace Lifetime Value

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Re-Orient Your OrganizationRe-Orient Your Organization

►Change From…Change From…

A. Competitors to AlternativesA. Competitors to Alternatives

B. Members to Non-MembersB. Members to Non-Members

Forces Credit Union To Re-define Forces Credit Union To Re-define Member ValueMember Value

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Great Big Idea!!!!Great Big Idea!!!!

Identify Your Non-Customers and…Identify Your Non-Customers and…

Build On The Powerful Commonalities Of Build On The Powerful Commonalities Of What Buyers ValueWhat Buyers Value

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Three Tiers Of Non-MemberssThree Tiers Of Non-Memberss

► Close To You…Cognitive Level Of LoyaltyClose To You…Cognitive Level Of Loyalty► Refuse To Use You…Unacceptable OfferingsRefuse To Use You…Unacceptable Offerings► Never Thought Of You As An Option…Never Thought Of You As An Option…

Assumed They Belonged ElsewhereAssumed They Belonged Elsewhere

Go With The One That Provides You The Go With The One That Provides You The Greatest Amount Of PotentialGreatest Amount Of Potential

Make Sure You’re Profitable & SustainableMake Sure You’re Profitable & Sustainable

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First Second Third Tier Tier Tier

YourMarket

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IV. Don’t Be Satisfied With IV. Don’t Be Satisfied With Satisfied Satisfied

►Optimize The Loyalty LevelOptimize The Loyalty Level►Teach The Increasing Returns Biz Teach The Increasing Returns Biz

ModelModel

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Loyalty/Brand IntegrationLoyalty/Brand Integration

Normative

Affective

Cognitive

Hard to imitate

Hard to deliver

Most meaningful

“Lifers”

Easy to deliver

Easy to lose

Easy to imitate

Emotional/Spiritual/

“The Thing To do”

Make it Personal

Both functional & emotional …benefits are readily visible

The power of translation…

Feature to benefit

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Increasing Returns Business Increasing Returns Business Model…Model…

The More Solutions…The More You KnowThe More Solutions…The More You Know

The More You Know…The Easier It Is The The More You Know…The Easier It Is The More Services…The More LoyalMore Services…The More Loyal

The More Loyal…The Longer They StayThe More Loyal…The Longer They Stay

The Longer They Stay…The More ChancesThe Longer They Stay…The More Chances

The More Needs Met…The Higher The ROAThe More Needs Met…The Higher The ROA