cu hedgehog concept public

The Camel Meets the Hedgehog

Good to Great for Credit Unions

Foxes pursue many ends at the

same time and see the world in all its complexity. They are scattered and

diffused, moving on many levels.-Isaiah Berlin

Hedgehogs simplify a complex world into a single organizing idea, basic principle or

concept that unifies and guides everything.

Famous Hedgehogs

E=MC2

Three Hedgehog CirclesWhat are you deeply

passionate about?

What can you be

the best in th

e

World at ?

What drives your

economic engine?

The Hedgehog Concept

is a turning point in the

journey from Good to Great.

How long does it take to develop a Hedgehog Concept?

It took about four years the good-to-great companies to

clarify their Hedgehog Concept.

Hedgehog Council

Discovering Our Passion

First Hedgehog Circle:

What is our passion?

You can’t manufacture passion or “motivate” people to feel passionate.

You can only discover what

ignites your passion and the passions of those around you.

“Growth” is not a Hedgehog Concept.

What Gets You Excited?

“People who aren’t passionate about Gillette need not

apply.”

Passion for Accounting?

Accounting is a Tool

A Tool for Building a Great Organization

What is Our Passion?

What is the passion in your department?

How does that passion connect to the mission of the Credit Union?

What is your personal passion?

Second Hedgehog Circle

What can we be the best in the world at?

When You Think of Excellence:

• What companies orbrands come to mind?

• How do we compare?

Disney Marketing Didn’t Hurt!

Understanding We Can (and Cannot) be the Best at

• What can we potentially do better than any other credit union?

• And equally important:

• What can we not do better?

• And. . . If we can’t be the best at it,

• Then why are we doing it at all?

The Most Crucial Point

• A Hedgehog Concept is not• a goal to be the best, • a strategy to be the best, • an intention to be the best, • a plan to be the best.• It is an understanding of what you can

be the best at.• The distinction is absolutely crucial.

-Jim Collins

What can we be the best in the World at?

Third Hedgehog Circle:

Measuring Success:Tuning the Economic Engine

Tuning the

Economic Engine of the Credit Union

Separate Inputs

And Outputs

Input: Arrests Made

Output:Reduce Crime

Input = Revenue

Output = Profits

Economic Engine for Business

What Drives Your Economic

Engine?

• Capital

• Asset/Liability

• Management

• Earnings

• Liquidity

• Net Promoter Score?

How’s Your Camel?

Input = SEGs Signed Up

Output:

New members&

Products per member

(debit cards in hand!)

New Manager in Business Development

-40

-20

0

20

40

60

80

100

120

1 4 7 10 13 16 19 22 25 28 31 34 37 40

May thru June 2006

YTD Member Growth

YTD Growth

Department Metrics

Good to Great and the Social Sectors

A great organization is one that delivers superior performance and makes a distinctive impact over a

long period of time.

-Jim Collins

Good to Great and the Social Sectors

How effectively do we deliver on our mission and make a distinctive impact, relative to our resources?

-Jim Collins

Good to Great and the Social Sectors

What if your outputs are inherently not measurable?

The basic idea is still the same: separate inputs from outputs, and hold yourself accountable for progress in outputs, even if

those outputs defy measurement.-Jim Collins

Department Ratios