Technology is moving at an ever-increasing speed and so is its impact on society. It's not just your members who are affected – your employees are as well. Credit union leaders, including the board, must be ready. Leadership has a responsibility to stay on top of short-term and longer-term trends. Organizational culture must take societal changes into account, including technology's growing impact. This ever-present change carries with it both threats and opportunities and your organization's culture will determine the results.

As many futurists observe, humans have become somewhat cyborg-like with a smartphone glued to their hand and bluetooth buds in their ears. One study described how 25% of millennials glance at their phone every five minutes without an alert to prompt them. There is constant competition for "mindshare" – the level of awareness in the member's mind that a particular product commands. Ever-increasing information flows continually bombard the member and organizations need to break through the noise to motivate members to act.

Technology is causing structural changes in member behavior, with market power shifting from organizations to consumers. Credit unions must take a hard look at these effects and trends that change member behavior. It is important to analyze and make sense of the increasing competition for attention, time and money, not just for today, but for where they will be in the future.

The ages when major life events occur impacts both services and financials. Demographic shifts and variations in ways different generations approach life are adding to the complexity of member knowledge. Major events are shifting and generally elongating when moving from older to younger generations. Younger people are deferring marriage and buying a home. A recent New York Times report tells how younger people are delaying having children and having fewer due to economic uncertainty, financial constraints, student loans and even global warming. Time versus cost is an increasingly important calculus for younger generations; convenience often proves more important than cost. They also are more likely to choose experiences over material acquisitions.

Against this backdrop, utilizing technology must be a focused strategy consideration for small and large credit unions alike. It allows you to know your members better and to place better tools at your disposal and theirs. Challenges can emerge, however. Smaller credit unions may not have the capital to take advantage of what could be an expensive investment in needed technology. We have seen mergers predicated on this cause. On the other hand, well-capitalized credit unions may see a major investment in technology become obsolete by the next great app that simplifies the member experience, giving them what they want when they want it.

Big data analytics and artificial intelligence are powerful tools to help analyze the deluge of information that helps you understand what makes a member act. Instruments are becoming more available to organizations regardless of size. Smart strategies can allow third-party vendors to give small credit unions access to the same technology as large ones. With all this tech focus, however, the personal touch is still important, not just with members, but with your employees. Technology can bridge the gap between senior leaders and staff that size usually brings. It can allow employees to feel their leaders are more present, which is especially important when organizations reach a magnitude where "managing by walking around" is impossible.

One of our clients has effectively used a podcast format for its president to communicate with its 1,000 employees in numerous locations. Informal question and answer sessions give the employees a good sense of this leader as a person. Other forums provide multi-party conversations about strategy, but in this case, the intent is also personal. How many managers do you know who hold in-person conversations in a one-way format where employees are itching to get out the door? Even in large meetings, technology, such as apps, can create a two-way, tuned-in setting. Spot surveys and real-time questions make large meetings interactive.

As technology upends business ecosystems, diligence in incorporating the changes into your thinking, planning and culture will prepare you to face the future. Deepening knowledge of your members' changing needs is a competitive advantage. The art and science of using the information and the tools that technology brings can expand your leadership capacity in new and creative ways. Let your business models and culture evolve to meet these challenges that are not going away anytime soon.

Stuart Levine

Stuart R. Levine is Chairman and CEO for Stuart Levine & Associates and EduLeader LLC. He can be reached at 516-465-0800 or [email protected].