BY MARVIN C. UMHOLTZ
What are your credit union’s strategic tipping points? When planning for 2016, it behooves CUs to anticipate changes that will dramatically affect their operational strategies. Learn more about what could be putting the relationship based strategic business model of your credit union in jeopardy and how to overcome such a potentiality.
Among the external factors that are often discussed in the strategic planning process are those typically reviewed during a classic environmental scan” – geopolitical, economic, demographic, legislative, regulatory, political, competitive and the always-evolving customer expectations. Unlike in many past years, while planning for 2016 and beyond, credit union leaders are inundated by major external factors about which they have limited control.
Key strategic “wild cards” and “monkey wrenches,” as well as the need to identify their associated strategic implications for the credit union, are among the external factors that need to be strategically considered. The identification and discussion of these external factors should be performed in parallel with, but not be allowed to paralyze, the credit union’s internal strategic appraisal and the internal development of its strategic and operational plans for 2016.
Contingency Planning for 2016’s Inevitable Strategic Tipping Points
A “strategic tipping point” is a convergence of environmental factors or events that significantly impacts on a credit union’s strategic business plan – an environmental change that “tips” the strategy in a contingent direction. Strategic tipping points also go by other names like strategic inflection points, strategic crossroads or critical junctures.