We Are Straightforward Credit Union Advisors.
An extensive credit union client roster provides the experience necessary to understand the array of problems facing credit unions. Through informed questions and deliberate processes we answer the questions that face CEOs, CFOs and other executives to help improve performance, effectively and efficiently comply with regulatory issues and uncover hidden opportunities for growth. Below are just a few of the hundreds of questions that clients and others ask when it comes to their credit union. We would welcome the opportunity to talk to you today about your critical questions.
“I’m facing a merger and under pressure to unlock value and integrate processes, technologies and culture, all while keeping risk levels acceptable. How do I get it all right?”
Beyond closing on a merger or acquisition transaction, an organization needs to know at a detailed level how it is going to drive value. It’s about more than checklists or standard approaches… you need strategic clarity on what specific tactics will drive value for this deal. Developing a detailed “roadmap” with tactics, synergy and optimization targets, along with clear accountabilities and due dates, is critically important for realizing anticipated value. Surveys have shown that poor execution is more often the cause for organizations not realizing the anticipated value of mergers and acquisitions, more so than poorly defined strategies. Accordingly, it is important to begin integration planning early, involve key subject matter experts across the organization, and bring a sense of urgency for Day 1 readiness and what needs to be accomplished in the first 100 days.
Effective integration roadmap development requires a holistic approach that often encompasses the following: a shared strategic vision; focus on members; integrated go-to-market strategies; effective leadership and governance structure; key employee engagement; synergy planning and revenue optimization tactics; integrated design of operating practices, processes and systems; shaping a common culture; and performance measurement mechanisms. As a starting point for realizing the full value of an acquisition, McGladrey suggests beginning with synergy and integration planning workshops for developing an effective roadmap.
“Cloud? Virtualization? Application Delivery? Can any of it really save me money or help my growth?”
Historically, advances in technology have enabled tangible business results and real cost benefits. The latest developments not only help credit unions save hard dollars but, more importantly, strategize technology investments like never before. If your credit union is weighing application options, cloud solutions need to be considered. Reducing upfront expenditures, cloud applications enable banks to avoid big ticket capitalized purchases, taking on instead set monthly operational expenses. This helps credit unions realize flattened, predictable, and reduced overall IT spend.
Server virtualization has shown to result in a 10-to-1 server consolidation in a typical credit union. And with application delivery solutions, desktop virtualization and other thin-client technologies, virtualization means a credit union can rethink their three- to five-year rotation schedules while at the same time empowering their people to be effective from anywhere. Reducing hardware maintenance expenses and increasing device utilization means significant savings to operational expenditures on utilities, space requirements and credit union resources.
The savings potential is clearer than ever, but knowing which technologies can make the biggest impact for your business is usually not so obvious. We recommend a Rapid Assessment® to quickly and efficiently evaluate your emerging technology needs.
“Am I overspending on compliance? What can I do to take the burden off my internal staff? Is it time to consider cosourcing or outsourcing to reduce strain and further reduce costs?”
It is important to take a look at your overall compliance program and determine if you can consider alternative approaches, leverage other testing or automate testing. It is also important to continually evaluate risk so you can adjust your approach based on a risk-based methodology to ensure you have your efforts focused in the right spots. Cosourcing is an alternative to consider if you are experiencing either capacity or capability restraints, and can be an effective way for you to manage the burden of compliance.
“What are my best options today for improving operational effectiveness?”
Are your core operational and financial processes and systems effectively supporting your organization today? Do they have the scale to efficiently support your organization’s growth plans for the future? Do you have an organizational structure that fosters growth, effective decision-making, and a cost-efficient operating model? To what degree have you developed centers of excellence for core operations and back office functions? How well is your organization positioned to perform relative to your competitors given declining revenue pressures, increased compliance costs and other cost inflationary trends?
It is increasingly important that financial institutions take a fresh look at their operating model, structure, capabilities, systems and related cost-efficiencies. Gauging your operating effectiveness and efficiency in light of best practices and peer performance benchmarking is an important first step. Based on your specific strategy and positioning, it is then critical to define a prioritized plan for how to further capitalize on strengths, move more aggressively towards leading practices, and align the appropriate resources to execute on your strategic and operations improvement initiatives. Utilizing extensive industry experience along with proprietary benchmarking and best practice knowledge, McGladrey conducts a Rapid Assessment® that quickly and cost-effectively enables organizations to pinpoint the most significant opportunities for improving operating performance.
To connect with a specialist today, call 800.274.3978 or email Julie Starnes.
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