By Wendy Cleveland, CME
No, this isn't a bad joke. And in most cases, the only similarity you might consider between hernia surgery and filing an auto insurance claim is that both can be rather painful.
However, case studies presented at CUES' CEO Institute III this spring at the University of Virginia's Darden Graduate School of Business Administration demonstrated several similarities between these experiences as provided by two vastly different companies. Progressive Insurance Company's Concierge Program and Shouldice Hospital's hernia operations share the following business model attributes:
- niche markets targeted with specific services: auto insurance claims management and hernia operations.
- creating an experience from an unpleasant situation: To say the least, both a hernia and an auto accident can be less than enjoyable. These two companies try to take away some of the pain by designing an experience that is completely unique.
- high level of personal service: With a commitment to serving their customers, these businesses build strong brand loyalty and capitalize on the power of word-of-mouth marketing.
- focus on process: Efficiency along with service and experience keep costs low.
- innovation/differentiation: Process and experience differentiation are difficult to imitate. Products are easy to copy quickly. This is an extremely important lesson for credit unions, when everyone has a free checking account.
- long-term financial commitment provides a barrier to competitive entry: Risk of failure is high if a competitor must make a large investment to compete directly using the same model. Thus competitors are discouraged from moving ahead.
Presented by Professor Elliott Weiss, these case studies were part of the unique learning experience at CEO Institute.
For executives looking to take their credit unions successfully into the uncertain future, the three-year CEO Institute can assist by providing top-notch education in strategic planning, organizational effectiveness and leadership.
As a recent graduate of CEO Institute, I highly recommend the experien
ce to other credit union executives. Now don't worry, this isn't going to be an advertisement cleverly disguised as an informative article, even if it is coming from a marketing executive. Read on to discover the Top Five Things I Learned at CEO Institute (with all due respect to Letterman, I can be briefer).
5. Learning teams provide interesting, unique perspectives from participants with varied experiences. For instance, CEO Institute students came from various functional areas of their CUs, work for CUs of different sizes and memberships, and originate from all over the world. The teams are particularly effective for evaluating case studies such as those previously mentioned, as the varied perspectives of the participants create a rich discussion and raise points individuals may not consider in an isolated environment. At Darden, there are lovely conference rooms assigned to each learning team; the pub is another excellent option for maximum creativity.
4. Each of the three segments of CEO Institute offers a top-notch learning experience at highly respected business schools. While it is not necessary to take them in order, extraordinary relationships can be built with classmates over the course of three years of shared learning and experiences. These relationships expand participants' professional network, providing a powerful resource for each other in critical thinking and problem solving. Be forewarned, there is likely to be photographic evidence of good times.
3. LPI (Leadership Practices Inventory), which is part of CEO Institute III, provides insights into your leadership style that you may not have considered. Like a 360-degree evaluation, it may challenge your self-perceptions by identifying gaps with the perceptions others have of your leadership behaviors. Yes, you could just figure they're wrong and you're right. Of course, true learning comes from moving outside your comfort zone. So get moving!
2 . Falls River, another unique aspect of the program's third segment, is a great place to discover you're an adrenaline junkie. Not to mention the leadership and teamwork learning opportunities. (Go Hogs!) The power of this experience was more than I could have imagined. It challenged my own perspectives of limitations and exposed new possibilities. One activity particularly challenged a female teammate and me; as we watched the men in the group struggle at times, we knew completing the task as it appeared on the surface would be difficult without incredible upper-body strength. My teammate considered alternatives and tested a couple of theories until finding a workable solution. Once she completed the activity, she talked me through completing it as well. What a sense of accomplishment! How many times do we as CU leaders not consider alternatives beyond the most obvious which may seem insurmountable? [To get an idea of one activity we undertook, see Stephanie (Steph) Sherrodd, VP/retail delivery at Texas Dow Employees Credit Union (in red) with me in the photo.]
1. Strategic planning does not smell like an onion. It can, however, resemble one. In the first segment of CEO Institute, held at the University of Pennsylvania's Wharton School, Paul Schoemaker, Ph.D., reminded us how critical it is to identify and understand our CU's core competencies. He introduced two mapping tools: a tree and an onion. These visuals help CUs simplify the process. For instance, the onion is a set of concentric circles in which all major functions, services and operations are plotted; the center of the "onion" clearly illustrates core competencies.
To learn these Top Five Things and more, consider attending CUES' CEO Institute. It's an invaluable learning experience you will treasure for a lifetime.
Wendy Cleveland, CME, is VP/marketing/business development at $494 million AltaOne Federal Credit Union, Ridgecrest, Calif.
Read another account of CEO Institute: "What I Learned About Myself While Leading a Team Across a Bridge--Blindfolded."
CEO Institute grads can relive their experience by attending CEO Institute Graduate Exchange, Sept. 8-10 in San Diego.
