REALeadership:Igniting Growth and

Innovation on Purpose

Will Marre

STRATEGY

BRAND

CULTURE

Marketplace

Community

Workplace

REALeadership: Whole Enterprise Transformation

SUSTAINABLEABUNDANCE

SUSTAINABLEABUNDANCE

Socially-Strategic Business ModelSocially-Strategic Business Model

Inside OutInside OutSmarketing™ Smarketing™

Today’s Objectives

• Macro World: Consumer Opinion/Trends

• Why we are stuck or struggle

• What the big opportunities are

• How to get started igniting growth by doing the very best thing you can imagine

The world hasThe world has

ChangedChanged

The Number One Concern Today in America…

Personal Economic Autonomy

All but the very wealthy are worried…

• Safety, Security, Peace• Economic Opportunity and Security

SOURCE: DYG SCAN 2007

• Healthcare and Retirement• Cost of a Decent Life• Environment and Their Children’s Future

Age of Cynicism

Age of Cynicism

• Crisis of Consumer Trust

• Crisis of Employee Engagement

What’s Driving Consumers?

- McKinsey & Co. Global Survey

88% of consumers view business as negatively impacting the public good and environmental sustainability.

88%

What’s Driving Consumers?

- McKinsey & Co. Global Survey

92%

83%

87%

87% say they would switch brands (price and quality near equal) to one’s associated with good causes.

83% say companies have a responsibility to support good causes.

92% have a more positive feeling of companies that visibly support good causes.

Con

su

mers

100%

81% of employees who want to contribute to social benefits are NOT SURE WHAT TO DO.

Want to work for good

companies.

80%

Only trust companies if responsible.

83%

Want to contribute… not sure what to do.

81%

83% will only trust companies if it is environmentally/ socially responsible.

80% want to work for companies that directly contribute to society but aren’t sure how to find them.

What’s Driving Employees?

- McKinsey & Co. Global Survey

Why are you in business?

What Consumers & Employees WantWhat Consumers & Employees Want

Purpose Must Produce

“Good Fortune”Purpose Must Produce

“Good Fortune”

PurposePurposeis Your Business Model

•Purpose is Practical

•Purpose is Profitable

•Purpose is Personal

People + Planet

Sustainable

Profit

Abundance

The new goal of humanity isSustainable Abundance

REPUTATION (Cause Marketing)

CLUELESS(What cause?)

STRATEGY (THE CAUSE)

A Million Dinosaurs

Exxon Chevron

Fast Followers

EarlyAdopters

Toyota

GE

Apple

DuPont

Intel

J&J

Virgin Air

Patagonia

Ikea

Clifbar

Starbucks

Grameen Bank

Newman’s Own

Whole Foods

Monsanto GM

Unsure

Laggards

The Debate is Already Over

Save the World SellsSave the World Sells

of 30,000 Global Brands,

the Top 25 are

“High Purpose” - P & G

Save the World PaysSave the World Pays

High Purpose companies financially out

perform the general market

15:1 - Jim Collins

Save the World WinsSave the World WinsHigh Purpose Strategy + Culture

Employee + Customer

HighStockholder

Low

8 to 1

Productivity

Talent Retention

MarginFirms of Edearment

Wharton Business School Pub.

What is the purpose of banking?

•Build Self Reliance:–Provide growth capital.–Personal Loans: Education, Housing

•Build Quality of Life–Responsible Consumption

What new opportunities has your institution gained in the past 24 months?

1. Growth in Deposits

2. Growth in Customers

3. More Brand Recognition

4. None of the Above

Economic SystemEconomic System

Maximize Human Benefits

Maximize Human Benefits

Goal of Any

RUSH UPRUSH UPto Civilizationto Civilization

Whole Person Jobs

Useful Technology

Environmental Protection

Optimism + Happiness

Cultural Integration

Source: Economist

Tolerance

Religious Freedom

Free Speech

Free Press

Equality Under Law

Middle Class drives Human Rights + Economic Development

EDUCATION

CAPITALHEALTH

What Creates Middle Class Access to:What Creates Middle Class Access to:

INFRASTRUCTURE

What’s Your Paradigm?

Revolutions

Business Innovation Disruptive innovation creates new

products, new methods, new solutions and…

Steals dinosaurs’ customers.

3

The Leaders ChallengeToday’s Vision vs.

Tomorrow’s Opportunities

“Is this the best we can do?”

All of us ought to do an exercise called:

“The Future I Really Want”

Describe the world you want to help create.

Micro-Finance

Profits

Village Entrepreneurs Education

Money

Investment

Consumption

More Entrepreneurs

Grameen Bank Loan

• Social Collateral

• Business Support Meetings

• Children Teaching Children

Self-Reliance and Entrepreneurship is a Universal Human Ability.

Micro Credit

•133 Million Families

•500 million by 2015

•$200 - Self Reliance

•98% repayment rate

•Grameen America - 99%

GrameenGrameen America

106 Million Americans who are “under banked”

Loans • Education • Financial Services

Loans $500-$3000 …… 99.3% Repayment

BankersBankers Without Borders

• Connects skills, passions and resources to end global poverty.

• Business expertise: To scale up microfinance solutions.

GrameenFoundation.org

Before Micro Finance there were

Credit Unions!

• Relentless Competition • Rising Cost of Operations, IT, Branches.• Cost of Effective Marketing, Branding and Customer Acquisition.

What’s Happening?What’s Happening?

Why Can’t We Think of Anything Truly New?

1. Need for Predictable Financial Return

2. Risk Analysis

3. Historical Business Model

In what areas have you developed and rolled out significant customer-impacting

innovation in the past 24 months?

1. Products

2. Marketing and Branding

3. Customer Service and Care

ChallengeChallengefor Financial Institutions

The

Legacy Thinking + Legacy Systems Drives Anti-Customer Arrogance

Old Growth - New branches, high cost, older customers

New Growth - Internet, Low cost, younger customers

Old customers want personalized, face-to-face service.

Young customers want new products, low cost, fast convenience, and a brand that stands for something.

GIVEGROWGAIN

ImageVision is a Metric

Acquire, Fire,

Divest

Leadership of the PastLeadership of the Past

Imagination enslaved by self-interest is incapable innovation that matters.

Ebita Leverage Assets Public Relations

PurposePurpose Becomes the Business Model

•Relevant to Human Well Being

•Advocates Consumers Interests

•Focused

GAINGROWGOOD

Improve the Quality of Everyone’s Life

Innovation to Benefit Humanity

Unique Value Advantage

GTV Create New Value

Sustainable Abundance

Imagination liberated by noble purpose ignites invention.

Leadership of the Future

Ethical Vision(GTV)

• Positive qualities you are famous for

• Fundamental criteria for decisions

• Strong internal and external identity

Abundance

Create Unique Value Advantage

A

Your OwnYour OwnBenchmark

Be

Don’t Compete…Create

• Redraw Market Boundaries• Overthrow Analytical Industry Frameworks & Benchmarks• Value to Infinite & Costs to Zero

Unique Value AdvantageUnique Value Advantage

CommunityCommunity Banks and Credit Unions

• Build communities

• Educate their depositors

• Promote self-reliance

INVITE

Invite new customers by radically eliminating COST.

(Southwest, Minute Clinic, TATA)

INVENT

Invent un-thought of ways to fulfill imagined needs.

(Google, eBay, iPod/iTunes, Donnone)

IDEALIZE

Idealize value by eliminating negative, dysfunctional, or irresponsible aspects of current business.

(Prius, ClifBar, Wal-Mart, ING, VirginAir)

Invite + Invent + Idealize

(Micro Credit)

III

ING DirectA Bank with a Purpose

“Leading Americans back to Savings”

20 Million Customers

Banking is Retailing

ING Direct

• Café Orange

• Planet Orange

• WetheSavers.com

• Relationships are Structure

• Values are Culture

• Customer Advocacy is Brand

• Financial Literacy & Self Reliance is the Cause

Result•Low cost of customer acquisition

•High referral rate

•High customer retention

SMARTKETING

Marketing That Makes Consumers Smart

™

THREE CHOICES

Famous… for something that matters.

Invisible… business and life as usual.

Infamous… toxic commitment to self-interest.

If you were a consumer in your community, how would you rate your financial institution?

1. Famous for something that matters

2. Invisible - One of many generic choices

3. Infamous - Tolerated but not trusted

Fastest growing financial institutions spend 2x on marketing, branding, sales culture, website, online banking…than stagnant credit unions.

Invest in Your Unique Value Advantage

Invest in Your Unique Value Advantage

Source: 2008 National Credit Union Growth Study CEO Advisory Group

What’s Needed

• Exaggerate your difference

• Megaphone your story

• Amplify your culture

CUSTOMER and

EMPLOYEE COMMITMEN

T

Promise

You Are Responsible for Your Promise

Experience=

The Mission of Mission Federal Credit Union…

“Our mission is your mission.”

1. Nice - human experience - Old

2. Relevant - product experience - Young

3. Excellent - operational experience - Rich

3 Paths to Unique Value Advantage

3 Paths to Unique Value Advantage

Source: Forrester Research Inc.

• Products

• Branches

• Websites

• Sales Culture

• Financial Educ.

• Advertising

• P.R.

• Community Outreach

• IT Services

Your Value is the Experience You CreateSystems Touch Points Moments of Truth

• Campaigns

• Front line staff

• Telephone contact

• Correspondence

• Online/email/vmail

• Literature

• Loan documents

• Verbal promises

• Customer feedback

• Disappointments with service

• Loan turn-down

• Dealing with delinquency

• Referral treatment

• Events of personal

significance

•Moments of outstanding service

”“If we accept the unacceptable it is because we believe assumptions that are not true.

What’s the best thing I can imagine?

All our failures are failures of:– intention– will– imagination

What’s the best thing you can imagine?

DOING, SUPPORTING, INVENTING

Just Start