Raising the Bar

1. Raising the Bar REALeadership for a New Future WILL MARRE www.REALeadership.com

4. CORPORATE SOCIAL RESPONSIBILITY A BUSINESS COMMITMENT TO ENVIRONMENTAL, SOCIAL, AND ECONOMIC SUSTAINABILITY.

5. What’s Driving Leaders? 40% Only 40% of consumers view business as positively contributing to the public good and environmental sustainability. - McKinsey & Co. Global Survey

6. 92% 83% 87% What’s Driving Consumers? Consumers 100% 87% say they would switch brands (price and quality near equal) to one’s associated with good causes. 83% say companies have a responsibility to support good causes. 92% have a more positive feeling of companies that visibly support good causes. - McKinsey & Co. Global Survey

7. What’s Driving Employees? 83% 81% 80% Want to work for good companies. Only trust companies if responsible. Want to contribute… not sure what to do. 80% want to work for companies that directly contribute to society but aren’t sure how to find them. 81% of employees who want to contribute to social benefits are NOT SURE WHAT TO DO. • 83% will only trust companies if it is environmentally/ socially responsible. - McKinsey & Co. Global Survey

8. CSR is becoming the New Business Model

9. Micro-Finance More Entrepreneurs Money Village Entrepreneurs Education Consumption Profits Investment

10. Before Micro Finance there were Credit Unions!

11. Psychology of Uncertainty Believe we must all take responsibility for our future. Psychology of Confidence Believes technology and capitalism will solve everything The 21st Century Problem Have we lost our “Mojo?” SOURCE: DYG SCAN 2007

12. All but the very wealthy are worried… • Safety, Security, Peace • Economic Opportunity and Security • Healthcare and Retirement • Cost of a Decent Life • Environment and Their Children’s Future SOURCE: DYG SCAN 2007

13. The Number One Concern Today in America… Personal Economic Autonomy

14. What if… Everyone Could Own Their Own Bank?

15. So, what if your vision was… “Every American should be a member of a credit union.”

16. The Mission of Mission Federal Credit Union… “Our mission is your mission.”

17. What’s Happening? • Relentless Competition • Rising Cost of Operations, IT, Branches. • Cost of Effective Marketing, Branding and Member Acquisition.

18. RESULTS: • High growth in biggest credit unions or highly focused ones. • Nearly 50% have negative growth. • Only 12% have member growth rates over 5%. • Average age of member is over 50!

19. The Most Powerful Factor Impacting Performance is LEADERSHIP.

20. REALEADERSHIP REALeadership is the will to use your knowledge, judgment and virtue to create the Greatest Total Value.

21. R Sales Growth Increase Value • Consistent Financial Returns • Market Leadership • Committed Ownership • Relevant Products • Unique Value • Brand Reputation • Attract Talent • Sales Culture - Responsibility: GTV • Right people in right jobs. • Eliminate non- value added work. • Eliminate Waste, scrap and pollution. • Reduce Regulatory Risk Reduce Costs

22. Broken Model of Leadership Engagement: Cynical culture - Confusion, expectations of failure. Ethics: Loss of noble purpose - No leadership brand Envisioning: Visions are numbers - Reality is a PowerPoint presentation and Excel spreadsheets. Enrollment: Low morale - Superficial agreement, working to quit Execution: Low strategic velocity - chronic crisis, slow decision making, plan-failure cycles

23. Failure + = Failure A Good Story What’s Your Story?

26. False Stories: Personal Deny - Pretend there isn’t a problem that the problem is normal. “Everybody’s doing it.” Blame - It’s someone else’s job to fix the problem. “It’s not my fault.” Rationalize - What’s happening doesn’t matter and change is impossible anyway. “It is what it is.” WB

27. REALeadership begins with a Promise Your promise must be: Relevant Increase Opportunity Reduce Risk of Pain or it doesn’t matter.

28. You Are Responsible for Your Promise CUSTOMER and EMPLOYEE COMMITMENT Promise = Experience

29. Your Promise Must Be Precise. It’s either size or niche. Be big or be focused.

30. Your Promise is Your Nobel Intent. What are you willing to be famous for?

31. THREE CHOICES Famous… for something that matters. Invisible… business and life as usual. Infamous… toxic commitment to self-interest.

32. Most Businesses have no Ethical Vision Except Expediency Economists and Business Schools redefine Business as Solely an Economic Enterprise The Means have become the Ends. “The business of business is to maximize profits.” - Milton Friedman Source: Bartletts Familiar Quotations

33. Leadership of the Past GAIN GIVE GROW Acquire, Fire, Divest Vision is a Metric Image Leverage Assets Public Relations Ebita Moral justification of unrestrained self-interest.

34. E Honest GOLDEN RULE Comply LEGAL Deny Cost-Benefit Fair Ethics PEOPLE Greatest Total Value New Solutions PLANET

35. E - Ethics: G3 Leadership of the Future GIVE GROW GAIN Improve the Quality of Everyone’s Life Innovation to Benefit Humanity Unique Value Advantage GTV Create New Value Sustainable Abundance Strategic justification of morality.

36. Ethical Vision(GTV) • Positive qualities you are famous for • Fundamental criteria for decisions • Strong internal and external identity

37. Socially-Strategic Branding Noble intent:Hardest to duplicate and to do well, source of greatest brand loyalty. Identity (Feelings) Values Easy to duplicate, highly competitive Benefits Functionality (Rational) Easiest to do - Many others do the same thing. Features

38. The Hero and the Outlaw Archetypes are “Blueprints of Meaning” Stability & Certainty Creator - Martha Stewart Ruler - Bank of America Sage - Oprah Innocent - Grameen Bank Caregiver - Mayo Clinic Regular Guy/Gal - Ben & Jerry’s Lover - Godiva Belonging & Enjoyment Fulfillment & Independence Hero - FedEx Outlaw - MTV Magician - Google Explorer - Jeep Jester - Las Vegas Risk & Mastery Source: Margaret Mark: Strategic Insight

39. USA Brand Equality Freedom Responsibility Opportunity

40. Grameen Bank End Poverty Local Global Profits

41. A Abundance Create Unique Value Advantage

42. Why Can’t We Think of Anything Truly New? • Need for Predictable Financial Return • Risk Analysis • Historical Business Model

43. Unique Value Advantage • Redraw Market Boundaries • Overthrow Analytical Industry Frameworks & Benchmarks • Value to Infinite & Costs to Zero

44. Z

45. A - Abundance: What’s Your Z Factor? SustainableAbundance GREATEST TOTAL VALUEUnique Value Advantage Z New Product New Buyers Both + And ALL COMPETITORS Same Product New Buyers Improvement Product Y X Efficiency Costs New Product Same Buyers Same Product Same Buyers Process Service PEOPLE Strong Positive Emotion - Feels Right! - Trust - Experience - Identity Community Unique Utility - it Works! - Design - Low Effort - Buying, Using, Disposing PLANET Innovation

46. Credit Union Z Factor Personal Service Community of Members Access to Capital High Technology

47. A Abundance “There is No Box.” You must become institutions of the future rather than relics of the past.

48. Open Minded: Both + And • Imagine opposite is also true. • Demand unimaginable performance. • Solve a difficult, obvious problem. • Give the value away and find others to pay. • Collaborative innovation.

49. 3 Paths to Unique Value Advantage • Nice - human experience - Old • Relevant - product experience - Young • Excellent - operational experience - Rich Source: Forrester Research Inc.

50. Be Your Unique Value What if everyone who opened a new account received a $25 matching grant that went to pay for a child to learn the tools of financial wisdom?