It's Not the Same Credit Union Industry Anymore - Time to Lead Change
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Michigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
It’s Not the Same Credit Union Industry
Anymore – Time to Lead Change
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
PART ONE: TYPES OF CHANGE AND APPROACHES
1. Types of change.
a) Structural.
Mergers, acquisitions, consolidations, divestiture, spin-offs, etc.
b) Cost-cutting.
Eliminating non-essentials.
Squeezing costs.
Areas overlooked during high times.
c) Process.
Altering how things get done.
Faster, more effective, reliable, cheaper, etc.
d) Cultural.
The human side of business.
Reporting structures.
Management styles.
Product sales vs. customer solutions.
2. Goals that drive change.
a) The economic approach.
Increase financial value of organization.
Financial crises drive this approach.
Loss of bonuses, layoffs, and asset sales are typical.
This approach may succeed in the short run, but at the expense of your company’s future.
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
b) The organizational approach.
Learning organizations with capable employees.
Flatter organizational structures.
Stronger bonds between employees and customers.
This approach takes time. When change is truly needed, there is no time to waste.
What about a blend of the two approaches?
Dimensions of change Economic Organizational Blended
Goals Increase financial value Develop internal Understand
capabilities disheartened
organizations reduce
financial value.
Leadership Top-down mandates Front-line participation Direction from the
top. Acceptance and
inclusion from below.
Focus Structures and systems Behavior and attitudes How can structures
support cultures?
Process Plan and accomplish Experiment and evolve Frequent
communication to
adjust tactics.
Rewards Financial incentives Commitment drives Incentives to those
pay who drive, manage,
and foster change.
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
PART TWO: PUTTING THE WHEELS IN MOTION
The most common implementation problems for corporate change today
1. It takes more time than we planned (76 percent)
2. Problems crept up that we did not expect (74 percent)
3. We picked the wrong people for task forces and committees (66 percent)
4. Competing projects and activities kept us distracted (64 percent)
5. We need more staff training and development (63 percent)
6. Entry-level staff received little to no training (62 percent)
7. Factors outside of our control hindered implementation (60 percent)
1. Support and involvement of key people.
“To determine who these key individuals are, ask: who has the power to make or break the change?
Who controls critical resources or expertise? Then, think through how the change will likely affect
each of these individuals and how each is likely to react toward the change. Who will gain or lose
something…Are there blocs of individuals likely to mobilize against or in support of the change?” –
Winning Through Innovation
a) Are your company’s key players, those in relevant positions, members of your team?
b) Do members of your team have the relevant expertise to do the job and make
intelligent decisions?
c) Does your team include the needed range of perspectives and disciplines?
d) Does your team include people with sufficient credibility so that employees and
management will treat team decisions seriously?
e) Can, and will, your team members forgo personal interests in favor of larger
organizational goals?
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
2. The implementation plan.
a) Simple.
Complex plans, activities, flowcharts, etc. confuse and frustrate participants.
Think simplicity and coherence.
b) Created by all who are affected.
Joint identification of problems and solutions.
Those involved in making plans are more enthusiastic in implementing. Those
removed and imposed upon are more reluctant to change.
c) Structured in achievable chunks.
Build a plan in manageable, achievable segments. Tackle change with
believable, step-by-step, plans. Too much ambition can doom expectations.
d) Roles and responsibilities.
Detail responsibilities for all involved.
All outcomes should lead to individuals or teams.
e) Flexible.
3. Behavior and messages.
a) Inconsistency sends messages of lack of seriousness and commitment.
b) Consistency builds bonds of trust between leadership, management, and staff.
4. Develop enabling structures.
a) Test and experiment change programs before rolling out.
b) Build regular training programs into your organization.
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
c) Reward staff as they implement, monitor, modify, and succeed with change.
5. Celebrate milestones. Change can be long, tiring, and frustrating. Small celebrations for
short-term accomplishments can keep morale high. Rewarding these milestones can:
a) Neutralize skepticism.
b) Show that hard work and sacrifice pay off.
c) Keep support of senior leadership.
d) Continue momentum.
Beware of declaring victory too soon. This can derail change initiatives. Use your credibility and
momentum to focus on the next milestone.
6. Communicate relentlessly. One big announcement will not keep staff in line. Ongoing
communication: Motivates; Reduces resistance; Prepares people for challenges and victories;
and, Helps build ownership.
a) Specify exactly how change will improve customer satisfaction, profits, market share,
etc.
b) Explain the business reasons behind change.
c) Share the tough news. It helps with fear, anxiety, and the rumor mill.
d) Brainstorm, share, predict and plan for all of the “what ifs.”
e) Define success. Measure results. Communicate progress. Reward
accomplishments.
f) Stay attuned to those on the front line. Leaders need feedback and those who
implement need opportunities to share their learning and concerns.
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
PART THREE: THE HUMAN FACTOR
1. How the rank and file respond to change.
Successful management of change requires that we recognize people factors and social systems.
People develop routines. Sometimes, a diversion from the routine creates tension, stress, anxiety,
and fear. We all have a unique disposition toward change. Discovery Learning characterizes people
who represent change styles.
a. Conservers.
Appear deliberate, disciplined, and organized.
Prefer change that maintains the current structure.
Enjoy predictability.
Focus on details and their routine.
Honor tradition and established practice.
b. Pragmatists.
Appear practical, agreeable, and flexible.
Focus on results.
Operate as mediators for understanding.
Are open to both sides of an argument.
Take a middle-of-the-road approach.
c. Originators.
Appear unorganized, undisciplined, and spontaneous.
Prefer change that challenges the current structure.
Enjoy risk and uncertainty.
May be impractical and miss important details.
Can treat accepted policies and procedures with little regard.
2. The resisters. “The reformer has enemies in all those who profit by the old order.” –
Machiavelli
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
Any time people perceive themselves as threatened with change, expect resistance. It can take the
form of no commitment, direct opposition, subversion, or insubordination. Dealing with the
resisters doesn’t require a guillotine, Siberia, or a “work camp.” Instead:
Understand how change might create pain or loss in your organization.
Identify those who may lose and anticipate how they may respond.
Make sure the resisters know why there is change.
Explain the benefits of change – for the organization and them.
Make them active partners in change. Typically, resistance to change is about a loss
of control.
3. The change agents – those who help you get the ball rolling without doing a lot of pushing.
a. Who do others listen to? Keep in mind that they may not be those with formal
authority.
b. Who has “a better way of doing things around here?”
c. Who’s new around town? Those who haven’t been around for a long time may
have a different mind-set.
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
INITIATIVES, MANAGEMENT, CHAMPIONS, AND FRONT LINE LEADERS
I
M F
Group Buy-In
C
I: Initiative – Any campaign, change, culture shift, marketing effort, promotion, restructure.
M: Management – Key managers and executives responsible for initiative.
C: Champions – Non-management change agents who carry front line respect and influence.
F: Front Line Leaders – Those with day-to-day task of implementing the initiative.
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
GROWTH ACTIVITIES
1. Who are the potential initiative champions in your organization? What departments are
represented? How do their daily activities and communications intersect?
2. Within your organization, who would you consider to be an anti-champion? Closely hold
this information; it’s for planning purposes only.
Write an agenda and schedule your first initiative champion meeting.
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
PART FOUR: STAYING COMPETITIVE WITH CHANGE
1. Why we need continuous change.
a. Small changes are easier to manage.
b. Small changes have a greater probability of success.
c. Small change disruption is short-term and confined.
d. Your organization is in a constant state of competitiveness and readiness for change.
2. Can people handle continuous change?
The ability to change rapidly and frequently seems to be a critical mechanism for survival. There is
also evidence of an inoculation effect, i.e. “we’re just used to it.” Given human differences, though,
handling continuous change is tied to expectations. Incremental change is better than massive or
disrupting change for obvious reasons. Most important, continuous change can keep organizations
away from monumental change.
a. If we explain it correctly.
b. If it’s anticipated.
c. If it’s handled in manageable doses.
d. Participatory.
e. Routine.
3. Leading continuous change.
a. Conduct continuous external monitoring, especially for technology, consumer
behaviors/preferences, and delivery methods.
b. Conduct continuous internal monitoring, especially for faster, more flexible, and
more efficient operations.
c. Provide familiarity, routine, and continuity.
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www.RisingAboveEnterprises.comMichigan Credit Union League
2011 Spring Leadership Development Conference – 3.26.11
Mt. Pleasant, MI
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