Practical Ways Analytics Can Transform Your Credit Union · Practical Ways Analytics Can Transform...

PracticalWaysAnalyticsCanTransformYourCreditUnionPresentedbyScottMcClymondsofCEOVelocityConsulting

AdvancedLeadershipandAnalyticsSystems

OnBehalfoftheTennesseeCreditUnionLeague

SpecializinginLeadershipSystemsandBusinessIntelligenceHelpingFIsusebusinessintelligenceto:

§ Increasememberloyaltyandprofitability

§ Improveemployeeproductivityandjobsatisfaction

§ Provideleadershipwithbest-practicemanagementprocesses

§ FrequentcontributortoCUManagement (CUES)andCUBusinessCopyrightCEOVelocity2017 2

Strategy

ExecutionInsights

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Agenda

“Everythingrisesandfallsonleadership.”~JohnMaxwell

• WhatisBusinessIntelligence(Analytics)andHowDoesitHelp?• RealWorldClientExamples• ExecutiveInfluence• FourPracticalExamples• NotEveryoneisaBeliever(CommonObjections)• HowCanMyCreditUnionSucceedatAnalytics?• Q&A/Takeaways

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What Is Business Intelligence (Analytics)?

Theapplicationofinformationandtechnology tohelpcreditunionscompetemoreeffectivelythrough:

• Improvedunderstandingofmemberneedsandbehaviors• Increasedemployeeefficiencyandeffectiveness• Streamlinedprocesses• Betterallocationofresources

AnalyticsisAboutPeople• Thoroughlyunderstanding

• Theneedsandgoalsofyourmemberssoyoucanhelpthemachievethem

• Yourmarketsandcommunitiessoyouknowwhoneedstobehelpedandhow

• Howyouremployeescanmosteffectivelyservemembers

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CreatingaHighVelocityCreditUnionIngeneral,leadershipprovidesdirection,andemployeesandsystemsprovidethespeed.Theymustworktogetherlikeachampionshipteam.

Leadership

SystemsPeople

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StrategicAlignment

KnowWhoYouAre

Strategy

MemberNeeds

MemberExperience

Communicate

FocusedExecution

Measure

Innovate

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BusinessIntelligenceImpactstheWholeCUTheEightPillarsofStrategicAlignment

Leadership

SystemsPeople

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Case Study 1: Well Defined Analytics UsesProposedPhase Client1 Priorities

A • CommercialDeposits• LendingOfficerPerformance• MostProfitableCustomer

B • GrowthinWealthManagement• Fee IncomeAnalysis• BeginFinancialReporting

C • Deposit Retention• FinishFinancialReporting

D • TotalChannelTransactions

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PhaseA Data:

CustomerAccountsLoanPortfolioData

Deliverables:HybridofCustomer360andPerformanceInsightQlikSensetemplatesFoundationalQlikSenseSetupandETL

PhaseB Data:

Fees&WealthBeginFIReporting

Deliverables:WealthmgmtDetailedfeeanalysisSelectfinancialreportsN-PrintingSoftware

PhaseC Data:

DetailedCoreTransactionGrainAccountingRelatedDeliverables:DepositretentionalertsTransactionAnalysisDashboardSelectfinancialreports

PhaseD Data:

AdditionalTransactionsfromNon-coresolutions

Deliverables:CustomerchannelanalysisActionnoticesbasedonconsumerbehavior

CustomerandLendingOfficerPerformance

FeesandWealth

Management,ReportingPartI

Retention/CustBehavior

Analysis,ReportingPart

II

TotalChannelAnalysis,Action

notices

A B C

60-90days

Training

OverallArchitecture

BusinessAnalysis

DataAnalysis

Focus

Est.

ROI

Increasingcapability,increasingvaluetotheorganization

TechnicalStrategy

Projectphasesthatdelivervaluetothebusinessonaregularcadence.

Preparationand

Architecture

@30days

BusinessIntelligenceRoadmapD

60-90days 60-90days 60-90days

CaseStudy2:BusinessIntelligenceforCulturalImpactHelpExecutiveManagementSetDirectionforBranchBanking• GoalsandTimelines

HelpBranchBankingManagementSetActions• Growthinincome,loans,deposits

HelpBITeamMeetNeedsofInternalClients• Gainsomequickwins

GainAdoptionviaSelfServiceResearchEnvironment• Increaseproductivityandefficiency

IngrainAnalyticsIntotheCulture• Trainpoweruserstobecomeevangelists

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SuccessfulBusinessIntelligenceProjectFlow

Adopt,Execute,Adjust:Backtothe8Pillars

Analyze,Question,Strategize:Developplanforresults

Customize:Adaptsoftwaretospecificclientneeds

Translate:Turnbusinessneedsintotechnicalrequirements

Discovery:Interviewbusinessandtechnicalstakeholders

BusinessFramework:DetermineKeyBusinessQuestionsorGoals

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Greg:CEO“Iwanttouseanalyticsnotjusttoimprovereporting,buttoadvanceourabilitytoserveourmembers.Iwanttonowwherethereisuntappedpotential,notjustwherewearenow.I’mlookingforwherewecangoandgrow.

ForourlendersIwanta360degreeviewofallthatthey’redoing,howthey’reengagingthemarket,andhowtheycanbecomebetterathelpingmorepeoplewithouttakingbadrisks.”

Sue:CFO“Weneedeasytousedashboardsthatgivequickaccesstodatabyofficer,branch,timeframes,andenableustoproduceboardandregulatoryreportsquicklyandeasily.Weneedtobeabletodrillintoeachreportfordetails.”

Christy:COO“Iwanttoknowwho’susingallthenewproductsandserviceswe’verolledout,andhowthey’reusingthem.I’dlikesomeonetohelpmeinterpretdatabecausesometimesIdon’tknowwhatIdon’tknow.”

SuccessfulBusinessIntelligenceStartswithEngagedExecutives

TwoForwardThinkingCUCEOsMemberlifeeventstiedtomerchantdiscounts

Memberfinancialhealthandproducts

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JoeNewberry,RedstoneFCU

DougFecher.Wright-Patt CU

• 3,000employees;260branches

• 350,000customerstouchedyearly

• 30,000+newaccountsannually

• $5million+annualnetincome

• Careerpaths

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PracticalExample1:OutboundCallsfromBranches

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PracticalExample2:MigratingProfitGroups

$41millioninnewmortgagesmigratingHighPotentialhouseholdstoHighValue

-40

-20

0

20

40

60

80

100

10 20 30 50 60

%ofP

rofits

%ofMembers

HighValue

Unprofitable

MassMarket

HighPotential

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PracticalExample3:SavingHighProfitMembers

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Toomanyat-riskEndZonemembers

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PracticalExample4:ImprovingLenderPerformance

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CommonObstacles/ObjectionsObstacle/Objection Answer

Wecan’tgetanyonetouseourCRM Findandrewardearlyadopters

It’stoohardtogetdataoutofourcore Companiesspecializeinthis

We’vetriedthisanditdidn’twork Talent andleadershipalwaysmakeitwork

Manyofourpeopleareretiringinthenextfiveyears Willyourcreditunionbehereinfiveyears?

Wehaveasocialmediacompanythatdoesallourdigitalmarketing

Analytics strengthensrelationshipsovertime

Thisisjustoverthinkingthings It isservingyourmembersbetter

Wedon’thavethetalent Outsourcingisagreatoption

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HowDoWeSucceedatAnalytics?StartSimplewithClearGoals

PlanYourObjectives• Don’tover-reach

ChooseYourPartners• Considertheiroverallcapabilities

AdoptandGrow• Leadthroughthegrowthpains

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PlanYourObjectivesDon’tOver-reach

MemberRelationships• Simplecross-sales

FinancialGoals• Growthinincome,loans,deposits

ProcessandCulturalChanges• Supportiveaccountability

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ChooseYourPartnersConsiderTheirOverallCapabilities

Assesstheircommitmenttoalong-termrelationship•Manyjustwanttosellsoftware

Matchtheirexpertisetoyourgoals…easeofuse• Dotheyhaveexpertiseinfinancialservices?

Theymustbeabletohelpyounavigateinternalchange…widespreadadoption• Thetechnologyistheeasypart

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AdoptandGrowLeadThroughtheGrowthPains

Creategoalsaroundmemberprofitgroups• Createavatarswithpictures,involveemployees

Appendeddataconnectsyoutorealpeoplestoriesandthemarket• Helpswithavatarsandbringsoutmaterialdifferences

Planyourbudgetandgrowth• Youwillknowwheregrowthwillcomefrom

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WhatShouldWeDoNext?CreateaPlan forSuccess

1.IfCEOisabeliever,unite executiveteam,createteamandbudget

2.Decidewhoownsitinternally

3.Haveownercreate ateamfromyourCFO,COO,CMO,CIO;havethemdevelopanon-technicalplanorroadmap;mayneedhelpfromanoutsideexpert

4.Your planshouldhavephasessuchas“Addallaccountdata”,“Bringintransactions”,“Createorapproximateprofitability”…youcan’tdoeverythingatonce

5.Findaversatiletechnology andbusinesspartnerwhocanhelpyoumakeitsuccessful

6.Understandsomeemployeeswillfeeluncomfortable; planforit

7.Tiemetricstobonuses,createincentiveplans,careertracks,hiring

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WhatIfWeIgnoreAnalytics?

20,000CUs

6,500CUs ?CUs

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DiscussionandKeyTakeaways1. Doyoubelieveknowingmoreaboutyourmemberscanhelpyou?

2. Ifnot,whatdon’tyoulikeorbelieve?

3. Couldanyoneonyourexecutiveteambeachampionfortheeffort?

4. Whatsizebudgetcouldyouaffordtogetstarted?

5. Howwouldyoupresentthistoyourboard?

6. Whatmanagementoremployeeobjectionsdoyouanticipate?

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ThankYou!

Resources@ceovelocity.com:

§ CUBusinessleadershiparticlesandCEOinterviews§ CUES/CUManagementeditorials

§ Workshopsandvideos

ScottMcClymondscontactinformation:

479.263.0774scottm@ceovelocity.com

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