Key Policies and Procedures

A well-defined framework is vital for guiding technology changes. The following policies and procedures can help ensure success:

Annual Budgeting Process: Technology projects are often costly. Ensure that technology leaders are actively involved in the financial planning process to account for potential technology expenses. Addressing the risks and costs of not upgrading outdated technology is crucial.
Off-Budget Expense Justification: Not all technology changes align with planned budget cycles. A formal process for off-budget expense justification allows for necessary but unforeseen technology investments.
Capital Project Planning: Credit unions can capitalize on certain technology expenses – such as software customization and testing – when introducing new solutions. Establishing policies around capitalization can expedite decision-making.
Technology Project Charter: This document outlines key project details, including goals, benefits, estimated expenses and timelines. A well-developed charter ensures clarity and alignment across teams.
Vendor Management Policy: Vendor relationships are critical, especially for third-party software solutions. A vendor management policy ensures thorough due diligence and helps align vendor capabilities with strategic goals.
Cybersecurity Policy: As cybersecurity threats increase, it is critical to ensure your technology change policies align with cybersecurity protocols. Clear guidelines on mitigating risks are essential to safeguarding member data.
Artificial Intelligence Policy: As credit unions increasingly adopt AI, policies must be established to outline how these technologies should be implemented in line with the organization’s goals and risk tolerance.

Identifying the Need for Change

Sometimes, a core technology becomes outdated, or the vendor discontinues support, necessitating change. However, voluntary changes require a clear business case. A structured approach helps determine whether a new solution is necessary. Factors to consider include:

The lifespan and performance of the current solution;
Evolving business requirements;
Build vs. buy analysis;
Vendor stability and support capabilities;
Operational impact and talent needs;
Cost of implementation, integration and ongoing maintenance; and
User learning curve and training resources.

Credit unions must also weigh the risks of not uploading technology. Documenting the costs of maintaining outdated systems can help make a compelling case for change.

Instant Insights /

Navigating Technology Changes: A Strategic Guide for Credit Union Leaders

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