LOMBARD, Ill.-Before the credit union considers what should comprise its 2010 strategic plan, it should first examine the process for how it develops those annual goals.
Bill Handel, VP-research and development for Raddon Financial Group, noted that many CUs' strategic planning process needs to be "revamped. It needs to be more responsive. The plan needs to be revisited more frequently. It should not be driven by the calendar, not in these unusual times, as much as it should be driven by the need to meet."
Handel shared that credit unions should determine the issues that bring the planning team back together, and have a standing meeting room to convene in whenever necessary. When the planning team gathers, a critical item on all lists should be making sure a merger plan is in place. "Whether or not they ever act on a merger or not, credit unions need to define what they are looking for in a merger partner. We say this because we feel strongly there will be significant pressure on the industry, especially on those that are reasonably healthy, to pick up those that are sick."
Handel warned that CUs should look beyond financial requirements, where he said many merger plans stop. "From our perspective that is only the beginning of the analysis. The second piece is looking at what differences in the membership base can be accepted and what are important similarities-the demographics and product views, etc."
The similarities and differences in the markets of potential merger partners should be examined, as well. "You may be a dominant player in your market space, whereas who you are picking up could be a second- or third-tier player," Handel said. "You try to implement your marketing and strategic approaches in their marketplace and it won't work. And finally, the credit union should consider cultural issues."
For info: www.raddon.com
