10 Reasons Plans Fail

by Ann Hayes-Peterson

Bonnie Doolin has facilitated enough credit union planning sessions that when directors say, "We want you to write our plan," she knows it could be a long day.

Strategic planning isn't a magic bullet, notes Doolin, senior vice president of business development and lending strategies with New England Credit Union Services, Southborough, Mass.

Plans have to come from the credit union's leadership. Planning helps a credit union create its future. And when you're done, you should have answers to three fundamental questions, Doolin says:

1. Where are you now?
2. Where do you want to go?
3. How are you going to get there?

But many credit unions never get to that point because planning efforts stall. Doolin explains some of the key reasons this can happen:

No. 1: Unrealistic expectations. Your board and management team must agree up front on their expectations. It's difficult to make progress when some want to look at the future from a 10-year horizon while others want to look just 12 months ahead.

No. 2: Inadequate analysis. Planning bogs down without adequate information to discuss initiatives properly. Members want faster loan approvals but credit union staff claim there's inadequate technology, not enough time, or too little staff. Planners need real information, not excuses.

No. 3: Blurry vision. Board and management need to agree on the credit union's direction. But often boards micromanage, leaders are indecisive, and everyone fears change. One solution is having a common vision statement.

No. 4: Bullies. When bullies--whether directors, CEOs, staff, management team members, or even facilitators--argue for their special interests, redirect the focus to what's best for members.

No. 5: Unclear objectives and goals. At the conclusion of the planning process, everyone must know what needs to be done, when, how, and by whom.

No. 6: Lack of buy-in from the CEO or staff. Your CEO might say yes to the board but not believe in your plan, or simply lack the will to achieve it. Conversely, staffers who aren't consulted or convinced become saboteurs. Avoid this by communicating across all areas of the credit union during the planning process.

No. 7: Responsibility without authority. Initiatives often fail if the necessary budget, technology, or "clout" to get the job done isn't given along with the responsibilities to do it. Appoint a traffic cop to monitor distribution of resources.

No. 8: Overreaching. Great plans take shape at planning sessions, but be realistic about the number of goals set in terms of staff and time availability.

No. 9: Presumed crisis. A natural disaster or terrorist attack is a real crisis affecting business plans' progress; the inability to delegate isn't. Plans must be flexible in the face of disasters, and you still must meet realistic deadlines.

No. 10: Losing steam. As soon as the "glow" from the planning session fades, plans often fizzle. If boards and CEOs don't progress beyond the first action item, the rest of the staff breathes a sigh of relief. Someone inside the credit union needs to monitor your progress. When you hit a bump in the road, pull out your compass and ask, "What do members want?" You won't go too far wrong if members' long-term well-being is your primary motivator.