5-year strategic plan for a large credit union

Background: The client’s prior strategy was growth focused, with acquisitions driven by offering in leading rates. Due to the member-owner structure, their board is focused on creating member value rather than business value

Outcome: AQN projects that by focusing on earnings growth, rather than asset growth, building ROA from 0.66% to 1.0%, the client can grow annual tech and brand investment by $75M over the next five years

AQN’s Approach:

  • We began with a SWOT analysis of their business

    • Executive interviews and review of previous strategic plans and results provided the internal components

    • BRD data, industry reports, and conversations with QED provided the external components

  • AQN aggregated these SWOTs along with our hypotheses for an Executive Strategy Workshop

  • With alignment on strategy from the workshop, we then worked with the client’s leadership to present the proposed pivot to their board

Key Results:

  • Identified profitability limiters and new areas of focus to increase returns by 52%

  • CEO endorsed the strategy at senior management meeting and we were invited to address the board at annual offsite

  • The board enthusiastically supported the strategic pivot

  • Which created a substantial change in corporate focus, with capital reinvestment goal of $75M