What are your strategic planning options?

Whichever option you choose, ask the right questions

[black right triangle] Annual planning meetings provide an opportunity for management and directors to step back, see where their credit union is headed, and then adjust that direction if necessary.

The meetings typically take place between August and November, in time to feed into the budget process. They generally last one to four days.

Americhoice Federal Credit Union in Mechanicsburg, Pa., is on the fast track. It convenes its annual planning session on a Saturday with continental breakfast, breaks for lunch, and wraps things up by 4 p.m. "One year we scheduled a dinner with spouses, but that was too long of a day," says Chairman Rod Shelleman. "After eight hours you want a change of scenery."

Truliant Federal Credit Union, however, meets for three or four days during the spring. (It holds a volunteer retreat in the fall.) "We meet Friday, Saturday, Sunday, and mop up on Monday," says Rick Miller, senior vice president of corporate development for the Winston-Salem, N.C., credit union.

That may seem like a long time, but many of Truliant Federal's directors are AT&T retirees. "Of course, we put some golf in there," Miller adds.

Outside professionals frequently lead planning meetings. They bring fresh perspectives and new ideas, and keep the meetings on track. Credit unions look to their leagues or CUNA & Affiliates for impartial moderators, and to independent consultants.

Whom credit unions choose depends on what they're looking for, says James Likens, chairman of First City Credit Union in Los Angeles and a frequent planning facilitator. One type of facilitator is the "organizational psychologist," who provides good, clear, open communication and keeps you on track, he says. Another is a professional who helps you with the plan. This type of facilitator has a planning template and takes you through the planning steps.

Some credit union officials, including Likens, run their own planning meetings. He and First City CEO Stephen Punch set the agenda. "If we thought it would be useful to have someone come in and help us realign and rethink things, we wouldn't hesitate to do so," Likens says. But the board and management are clear on their vision, so an outsider isn't needed, he explains.

Scenario-planning committees sometimes set the stage for the annual planning meeting. Scenario plans typically look out three to five years, or up to 10 years in some cases. These board/CEO committees meet regularly throughout the year and track the credit union's progress.

"Instead of iust saying you want to go from point A to point B, scenario plans might provide points A through D depending on economic shifts or other changes that affect you," explains Patrick McGrady, CEO of Toledo (Ohio) Area Community Credit Union.

Some credit unions hold joint planning sessions and share outside experts. Toledo Area Community did so after discovering another credit union planned to meet at the same facility during the same weekend.

"We shared information on our plans, swapped facilitators at midday, and held a general session with both facilitators," McGrady says. The other credit union is 150 miles away, so there were no conflicts due to competition.

Annual planning sessions aren't formal meetings with motions and votes. Plans are accomplished by reaching consensus. "Boards try to talk until everyone agrees," Likens says.

He believes such meetings should deal with strategy and process questions, not laundry lists of budget items. Strategy questions, Likens says, include, What sort of credit union will we be? What kinds of people will we serve? What sort of commitments do we want to make? Are we going to be high value, high-service or should we compete mainly on the basis of price? What role will branches play? How will we bring in new service groups? And how do we make all these parts fit together?

"Strategy isn't simply what we do," Likens maintains. "It's the boundary between what we do and don't do."

McGrady's goal for the annual planning session is to have 20 people depart with an understanding of where the credit union is headed and what the likely scenarios are. "Then it's easier at board meetings to suggest which scenario we're headed toward."

Copyright Credit Union National Association, Inc. Jul 2003
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