Credit Union Gets More than the Usual Strategic Planning

NothinGerber Federal Credit Uniong makes us more proud than pleasing our customers. Here’s a recent example from Gerber Federal Credit Union, of Fremont, MI.

After comparing several different options, the Gerber FCU Board of Directors chose ADVISA to lead their most recent strategic planning session. This was their third session during the past 10 years. While they knew that the time commitment and brainwork they devoted to defining dreams, analyzing threats and setting goals were important investments, they were surprised by the ongoing guidance for day-to-day activities the plan provides.

“I have been involved in probably 10-12 strategic planning sessions throughout my 35 years in business,” said Greg Zerlaut, Chairman of the Gerber Federal Credit Union Board of Directors. “This is the first time a strategic planning document has become a focal point that drives operations.”

“The marvelous tool is the Scorecard,” Greg said. “We have five major goals that are broken down into interim progress milestones. This has become the guts and core of our board discussions each month. It has evolved as a living document, as we have edited it several times for emerging issues.”

You can read the complete story by downloading it here.

How well does is your strategic plan drive implementation and achievement of goals?  You can learn more about our specialized approach to organizational planning on this webpage, or reach out to us here.

 

 

ADVISA Celebrates 25 Years

This Patriot’s day, April 18th, marked the 25th anniversary of ADVISA. It was that day 25 years ago that Arnold Daniels agreed to sell me the license to market and consult with Predictive Index® in Indiana. Over the years we’ve added Michigan and parts of Ohio to our territory and have worked with clients in Africa, Asia, Europe and the Middle East. We’ve built a team of 14 talented people who have worked together to build our 25-year track record of success. This team has built a suite of services to include supervisor training programs, management skills training, sales process training and strategic planning implementation. All of our efforts have been aimed at helping organizations increase work satisfaction while improving corporate performance. It’s been a wonderful run that we’re all proud of. Give me a call and let’s discuss if we can put our 25 years of success to use helping your business.

New Puzzle? New Piece Placement!

As 2009 ends we can only begin to assess how the recession of 2008-2009 will reshape our opportunities for the future.

Some trends already underway certainly will be accelerated – such as redefining basic energy and transportation infrastructure along “greener” lines – while other trends have been reversed – e.g. the deregulation of financial instruments.  Key questions remain, such as, will Chrysler and General Motors be able to survive long-term?  Or, how will the impetus for reform in health care play out?

If you are like me you are spending more time than usual these days thinking about fundamental shifts regarding the future and how they will affect your plans.

Do You Have a New Organizational Puzzle?

Many of us are going to have to deal with an entirely new puzzle when it comes to success.  This may require some changes in our organizational planning, too.  If so, you should:

  1. Review your strategic planning framework & adjust it to the new reality
  2. Start with a “blank slate” regarding your organization
  3. Recreate your organizational design structure to meet the challenges of your new strategy

Too often, strategic planning implementation is supposed to be accomplished by an organization that looks exactly like the one that existed before a change.  Starting with a blank slate helps us re-examine the focus areas of the organization from a very high level.

Most businesses have three primary functions:  Sales; Delivery/Operations; Accounting/Administration.  Each primary area of focus within your strategy should have an organizational “home.”

Responsibilities should reside with a single individual for all key strategic initiatives.  Establishing individual responsibility eliminates finger-pointing and provides a single point-of-contact for communication and coordination.  Include in peoples’ responsibilities the requirements for linkages between functions, as necessary.

Your objective is to design an organization that is best equipped to achieve the new strategic plan.

New Piece Placement!

The blank-slate mentality should also apply to people.  The organizational planning steps described above should be done without thinking about who will do what.

Once you have the organization designed THEN you have to figure out how your people fit into the new puzzle.  You should also consider what may be missing in terms of skill or talent.

Here’s where ADVISA’s people expertise becomes especially valuable.  We define each job in terms of the behaviors necessary for success and the resulting target that can be defined using personality assessments.  We then evaluate your current people and, potentially, new candidates, for who fits best.

To facilitate this effort we often employ a “Nine-Box Analysis” – see below.

   

Potential

 

 

Low

Medium

High

 

Performance

High

Evaluate if Potential can be Improved, If not – Maintain *

Identify next Career Moves, Ensure Motivation is Maximized *

Clear Obstacles, Maximize Challenges & Motivation *

Medium

Identify Training &/or Motivation Needed to Move Performance Up *

Identify Training &/or Motivation Needed to Move Performance Up *

Identify next Career Moves, Identify What’s Needed to Improve Perf. *

Low

Establish Turnaround Criteria & Timing, Enforce Rigorously *

Establish Turnaround Criteria & Timing, Enforce Rigorously *

Identify What’s Needed to Improve Performance, Perhaps Reassign*

* Sample Strategy

Each person in the organization is placed in the matrix and as you decide people placement you favor the higher-performance & higher-potential people.  Knowing which questions to ask to define what “favor” means in your company’s culture is a process ADVISA can facilitate.

Those who are in the middle may have training or development needs to move them up or their performance may be adequate in that particular role (it is a rare team that has everybody in the top-performing tiers).  In addition, considerations regarding motivation to improve performance and incentives to retain and realize potential should be included.  People who are low in both areas may need to find opportunities elsewhere.

The evaluation of “potential” in this approach will take into account the organization’s highest-priority needs identified in the new organizational structure, which has been designed to deliver on the new strategy.

By taking this approach you can “solve” the organizational puzzle created by a rapidly-changing economic situation and find the best pieces to fill the spaces.

Top down approach to performance metrics

Are you incenting the right behaviors?  Are the activities you measure aligned with your company objectives?

“It is difficult to get a man to understand something when his salary depends upon him not understanding.”

-  Upton Sinclair

By utilizing balanced scorecard metrics derived specifically from your organizational strategic planning you can begin to create true organizational alignment.  People will do what you measure!  If you are not measuring the right things your people will not do the right things.  Performance metrics need to be formed from the overall objectives of the organization.  They must be created from the top down.  Too many companies try to start at the lowest level in the company and work their way up.  With this approach it is highly unlikely that your metrics will be driven by your goals.  Start with the end result in mind.