Studies show that it is the big, tough strategic decisions that the board and senior management take that will move an organization to higher levels of sustainability and growth. Organizations today face massive challenges that make your planning process ever-more critical. Digital disruption and changing technologies, in particular, demand constant attention of credit union leadership. Technology can level the playing field for organizations regardless of size, while inattention to digital and economic disruption can make it difficult for any organization to compete.

All too often strategic planning involves a linear projection from the status quo. For some organizations, it may resemble budgeting more than strategy. But these times of dramatic change can mean that difficult course corrections, or even a discontinuity in the status quo, may be called for. Such bold moves, however, generally require human and financial capital, which may be needed for existing operations.

Think of the strategic planning process as a continuous journey of ongoing vigilance and analysis that works best with broad input. It means that you take a deep look into each of your business lines, especially as rapid change in the business environment can change their position in the market. Strategic downsizing can at times be as important as growth for the bottom line. In-depth analyses will alert you when capital allocated to a business line is under-employed and should be re-deployed to provide resources for strategic moves. It is a tough decision, however, to reallocate capital away from any existing business line, even when it is barely break-even, or worse. No manager wants to lose their business line or see it shrink, and senior people may have areas of responsibility where this will occur. They will feel the loss.

Credit unions today face massive challenges, especially driven by digital technologies that are creating disruption. Your strategy to address these challenges cannot just be an annual event. The strategic planning process must be an ongoing exploration that is creative and responsive to the times. This is true for all credit unions, and especially true for smaller ones. About 75% of the 5,757 U.S. credit unions have total assets of less than $100 million. Technology, however, can level the playing field for organizations of all sizes, while inattention to digital and economic disruption can make it difficult for any organization to compete. Strategic decisions that incorporate bold moves can simultaneously be a defense and an offense for credit unions.

A healthy culture is a starting point for these tough decisions. Leaders need to mitigate the social side of strategic change in order to catalyze trajectory-bending moves. Cultural dynamics are at play. Management incentives, human biases and organizational habits must be addressed as strategic changes have personal dimensions. Employees' personal incentives and the credit union's goals must be aligned for a culture that works to benefit the organization as a whole.

Research shows that large strategic leaps, which demand a realignment or reallocation of resources, are more likely to move an organization towards greater sustainability and member satisfaction. Yet incrementalism too often characterizes the planning process, with resources spread fairly evenly. Granted, credit unions may have lines of business that are barely break-even, if that, but are needed for overall member service; they support the financials indirectly. Even taking such cases into account, there may be areas where reallocation of human and capital resources away from underperformers will provide resources for larger strategic moves that will drive higher levels of member service and growth.

A trusting culture of shared ownership, supported by smart systems, enables the big difficult decisions that lead to organizational success. An ecosystem of incentives, including recognition, promotion and compensation, and a clear articulation of and adherence to your credit union's values, are foundational to alignment. Furthermore, trust facilitates communication, assuring that all voices are heard and not one dominates. It means that when people do the right thing for the overall good of the organization, systems are in place to reward them, even though their business may be downsized or the risky venture they attempted did not pan out.

Bring your team into the process. Their engagement improves the chance of success of the strategy. Your team is most likely on the front lines of any change. Their perspective is valuable. When employees understand that their assessments and recommendations are respected and their voices heard, they know that they are contributing to creating a successful future.

Stuart R. Levine is Chairman and CEO for Stuart Levine & Associates and EduLeader LLC. He can be reached at 516-465-0800 or slevine@stuartlevine.com.

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How Culture Impacts Strategy

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