Raising the BarRaising the BarREALeadership for a New FutureREALeadership for a New Future

WILL MARRE

www.REALeadership.com

ENVIRONMENTAL, SOCIAL, ENVIRONMENTAL, SOCIAL, A BUSINESS COMMITMENT TOA BUSINESS COMMITMENT TO

AND ECONOMIC SUSTAINABILITY.AND ECONOMIC SUSTAINABILITY.

CORPORATE SOCIAL RESPONSIBILITYCORPORATE SOCIAL RESPONSIBILITY

What’s Driving Leaders?

- McKinsey & Co. Global Survey

Only 40% of consumers view business as positively contributing to the public good and environmental sustainability.

40%

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

CSR is becoming the New Business Model

Micro-Finance

Profits

Village Entrepreneurs Education

Money

Investment

Consumption

More Entrepreneurs

Before Micro Finance there were

Credit Unions!

Psychology of Uncertainty

Believe we must all take responsibility for our future.

Psychology of Uncertainty

Believe we must all take responsibility for our future.

Psychology of Confidence

Believes technology and capitalism will solve everything

Psychology of Confidence

Believes technology and capitalism will solve everything

The 21st Century Problem

The 21st Century Problem

Have we lost our “Mojo?”

SOURCE: DYG SCAN 2007

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

The Number One Concern Today in America…

Personal Economic Autonomy

Their Own Bank?Their Own Bank?Everyone Could OwnEveryone Could Own

What if…What if…

So, what if your vision was…

“Every American should be a member of a credit

union.”

The Mission of Mission Federal Credit Union…

“Our mission is your mission.”

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

What’s Happening?What’s Happening?

• High growth in biggest credit unions or highly focused ones.• Nearly 50% have negative growth.• Only 12% have member growth rates over 5%.• Average age of member is over 50!

RESULTS:RESULTS:

The Most PowerfulThe Most PowerfulFactor ImpactingFactor ImpactingPerformance isPerformance is LEADERSHI

P.LEADERSHIP.

REALeadership is the will to use your knowledge, judgment and

virtue to create the Greatest Total Value.

REALeadership is the will to use your knowledge, judgment and

virtue to create the Greatest Total Value.

REALEADERSHIP

- Responsibility: GTVR

• Relevant Products

• Unique Value

• Brand Reputation

• Attract Talent

• Sales Culture

Sales Growth

Reduce Costs

• Right people in right jobs.

• Eliminate non- value added work.

• Eliminate Waste,

scrap and pollution.

• Reduce Regulatory Risk

Increase Value• Consistent Financial Returns

• Market Leadership

• Committed Ownership

Broken Model of Leadership

1. Engagement: Cynical culture - Confusion, expectations of failure.

2. Ethics: Loss of noble purpose - No leadership brand

3. Envisioning: Visions are numbers - Reality is a PowerPoint presentation and Excel spreadsheets.

4. Enrollment: Low morale - Superficial agreement, working to quit

5. Execution: Low strategic velocity - chronic crisis, slow decision making, plan-failure cycles

What’s Your Story?

Failure + A Good Story

= Failure

False Stories: Personal

Deny - Pretend there isn’t a problem that the problem is normal. “Everybody’s doing it.”

Blame - It’s someone else’s job to fix the problem. “It’s not my fault.”

Rationalize - What’s happening doesn’t matter and change is impossible anyway. “It is what it is.”WB

Your promise must be:

1. Relevant

2. Increase Opportunity

3. Reduce Risk of Pain

REALeadership begins with a

Promise

or it doesn’t matter.

CUSTOMER and

EMPLOYEE COMMITMEN

T

Promise

You Are Responsible for Your Promise

Experience=

It’s either size or niche.

Be big or be focused.

Your Promise Must Be Precise.

What are you willing to be famous for?

Your Promise is Your Nobel Intent.

THREE CHOICES

Famous… for something that matters.

Invisible… business and life as usual.

Infamous… toxic commitment to self-interest.

Most Businesses have no Ethical Vision Except Expediency

The Means have become the Ends.

Economists and Business Schools redefine Business as Solely an Economic Enterprise

“The business of business is to maximize profits.”

- Milton Friedman

Source: Bartletts Familiar Quotations

GIVEGROWGAIN

ImageVision is a Metric

Acquire, Fire,

Divest

Leadership of the Past

Moral justification of unrestrained self-interest.

Ebita Leverage Assets

Public Relations

Fair

GOLDEN RULEHonest

PEOPLE

Ethics

Comply

Deny

LEGAL

Cost-Benefit

Greatest Total Value

PLANET

New Solutions

E

- Ethics: G3E

GAINGROWGIVE

Improve the Quality of Everyone’s Life

Innovation to Benefit Humanity

Unique Value Advantage

GTV Create New Value

Sustainable Abundance

Strategic justification of morality.

Leadership of the Future

Ethical Vision(GTV)

• Positive qualities you are famous for

• Fundamental criteria for decisions

• Strong internal and external identity

Socially-Strategic Branding

Values

Noble intent:Hardest to duplicate and to do well, source of greatest brand loyalty.

FeaturesEasiest to do - Many others do the same thing.

Benefits

Easy to duplicate, highly competitive

Functionality

(Rational)

Identity

(Feelings)

1. Creator - Martha Stewart

2. Ruler - Bank of America

3. Sage - Oprah

4. Innocent - Grameen Bank

The Hero and the OutlawArchetypes are “Blueprints of

Meaning”

5. Hero - FedEx

6. Outlaw - MTV

7. Magician - Google

8. Explorer - Jeep

9. Caregiver - Mayo Clinic

10. Regular Guy/Gal - Ben & Jerry’s

11. Lover - Godiva

12. Jester - Las Vegas

Risk & Mastery

Stability & Certainty

Belonging & Enjoyment

Fulfillment & Independence

Source: Margaret Mark: Strategic Insight

USA BrandEquality

Responsibility

Opportunity

Freedom

Grameen BankEnd Poverty

Global

Profits

Local

Abundance

Create Unique Value Advantage

A

Why Can’t We Think of Anything Truly New?

1. Need for Predictable Financial Return

2. Risk Analysis

3. Historical Business Model

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

Unique Value AdvantageUnique Value Advantage

ZZZZ

Both + And

ALL COMPETITORS

Same ProductNew Buyers

New Product

Same Buyers

PLANET

PE

OP

LE

Community

Innovation

Product

Service

ImprovementY

- Abundance: What’s Your Z Factor?A

Costs

Process

EfficiencyX

Same ProductSame Buyers

Strong Positive Emotion - Feels Right! - Trust - Experience - Identity

Unique Utility - it Works!

- Design

- Low Effort

- Buying, Using, Disposing

GREATEST TOTAL VALUE

Unique Value Advantage

Z

SustainableAbundance

New Product

New Buyers

Credit Union Z Factor

Personal Service

Access to Capital

High Technology

Community of Members

Abundance

“There is No Box.”

A

You must become institutions of the future rather than relics of the past.

1. Imagine opposite is also true.

2.Demand unimaginable performance.

3.Solve a difficult, obvious problem.

4.Give the value away and find others to pay.

5.Collaborative innovation.

Open Minded: Both + AndOpen Minded: Both + And

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.

Be Your Unique Value

What if everyone who opened a new account received a $25 matching grant that went to pay for a child to learn the tools of financial wisdom?

Be Your Unique Value

What if every credit union branch and website became a financial education center? What if you sponsored a free, for-credit multi-media online course in financial autonomy?

Be Your Unique Value

What if every credit union had a Web 2.0 website with a community of advocates helping each other with solutions to today’s financial challenges?

ANSWER: Target people relevant to your core value proposition.

Enemy is profitless growth.

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.

1.0: “Talk at.”

Web 2.0 Offers Engagement

Web 2.0 Offers Engagement

2.0: Listen + Talk + Respond = Relevance & Relationship

2.0: Offers Brand Personality

• 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

Fastest growing credit unions 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

The Story of Our Lives

STATUS QUO CRISIS

Don’t Want

Do Want

Envision

Collaborate

Growth Spiral

Deny

RationalizeDeath Spiral

Hero’s Journey

COWARD

HERO

Blame

Innovate

Would Our Society Be Better Off Without Credit Unions?

So, what is your Promise?

Legacy:

We Have One LegacyWe Have One Legacy

A Healthy Planet withA Healthy Planet withHealthy People,Healthy People,

Supported by aSupported by aSustainable Economy.Sustainable Economy.