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This is a presentation that applies the Hedgehog Concept from Good to Great by Jim Collins to the credit union industry.
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The Camel Meets the Hedgehog
Good to Great for Credit Unions
Foxes pursue many ends at the
same time and see the world in all its complexity. They are scattered and
diffused, moving on many levels.-Isaiah Berlin
Hedgehogs simplify a complex world into a single organizing idea, basic principle or
concept that unifies and guides everything.
Famous Hedgehogs
E=MC2
Three Hedgehog CirclesWhat are you deeply
passionate about?
What can you be
the best in th
e
World at ?
What drives your
economic engine?
The Hedgehog Concept
is a turning point in the
journey from Good to Great.
How long does it take to develop a Hedgehog Concept?
It took about four years the good-to-great companies to
clarify their Hedgehog Concept.
Hedgehog Council
Discovering Our Passion
First Hedgehog Circle:
What is our passion?
You can’t manufacture passion or “motivate” people to feel passionate.
You can only discover what
ignites your passion and the passions of those around you.
“Growth” is not a Hedgehog Concept.
What Gets You Excited?
“People who aren’t passionate about Gillette need not
apply.”
Passion for Accounting?
Accounting is a Tool
A Tool for Building a Great Organization
What is Our Passion?
What is the passion in your department?
How does that passion connect to the mission of the Credit Union?
What is your personal passion?
Second Hedgehog Circle
What can we be the best in the world at?
When You Think of Excellence:
• What companies orbrands come to mind?
• How do we compare?
Disney Marketing Didn’t Hurt!
Understanding We Can (and Cannot) be the Best at
• What can we potentially do better than any other credit union?
• And equally important:
• What can we not do better?
• And. . . If we can’t be the best at it,
• Then why are we doing it at all?
The Most Crucial Point
• A Hedgehog Concept is not• a goal to be the best, • a strategy to be the best, • an intention to be the best, • a plan to be the best.• It is an understanding of what you can
be the best at.• The distinction is absolutely crucial.
-Jim Collins
What can we be the best in the World at?
Third Hedgehog Circle:
Measuring Success:Tuning the Economic Engine
Tuning the
Economic Engine of the Credit Union
Separate Inputs
And Outputs
Input: Arrests Made
Output:Reduce Crime
Input = Revenue
Output = Profits
Economic Engine for Business
What Drives Your Economic
Engine?
• Capital
• Asset/Liability
• Management
• Earnings
• Liquidity
• Net Promoter Score?
How’s Your Camel?
Input = SEGs Signed Up
Output:
New members&
Products per member
(debit cards in hand!)
New Manager in Business Development
-40
-20
0
20
40
60
80
100
120
1 4 7 10 13 16 19 22 25 28 31 34 37 40
May thru June 2006
YTD Member Growth
YTD Growth
Department Metrics
Good to Great and the Social Sectors
A great organization is one that delivers superior performance and makes a distinctive impact over a
long period of time.
-Jim Collins
Good to Great and the Social Sectors
How effectively do we deliver on our mission and make a distinctive impact, relative to our resources?
-Jim Collins
Good to Great and the Social Sectors
What if your outputs are inherently not measurable?
The basic idea is still the same: separate inputs from outputs, and hold yourself accountable for progress in outputs, even if
those outputs defy measurement.-Jim Collins
Department Ratios