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Quit while you’re ahead is the chorus line of any good gambling streak. Good gamblers know that you choose your end or it is chosen for you. They know that when the crowd swarms to cheer you on, this is the exact moment to walk away from the table.
Buy low and sell high is the mantra of every good investor. Sure, it sounds logical enough, but when emotions come into play, it takes real discipline to cash in or face the law of diminishing returns.
Our favorite brands follow this same logic. Just when you think Apple couldn’t possibly top their last move, they delightfully surprise with another innovative wow, while quietly retiring the old. It’s a powerful magic trick. They dazzle us with what’s in their left hand, so we forget what disappeared in their right.
Jerry Seinfeld knew this when he walked away from one of the highest rated television shows at its peak. Michael Jordan left basketball when the world was wanting more. Even Dan Mica cited his reason for leaving CUNA is that no one should stay in a position longer than ten years. They all understand that what goes up, must come down.
It’s economics 101. Every product, service, TV show, career and business model has a beginning and an end. They are innovated, experience growth, mature and eventually die. Demand is not meant to be a sustainable resource.
So, what should credit unions quit?
Should some of our products, services and business models take a bow, exit left and make room for something better? What has reached its peak? The checking account? The branch model? The way people save?
We’re taught that no one likes a quitter, but the reality is that people love quitters who master the art of a graceful exit so something just as remarkable can take its place.
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Kelley,
You did it again. Damn. What a great post.
I’ve always loved the self-cannabiliation model of Apple. They put their own products out of business to make way for the next generation. And when they mean “new and improved” they don’t mean just a new color.
I think some credit unions need to quit banker’s hours, period. I cannot believe we still get away with it. Especially if you’ve expanded your FOM to anyone who lives, works, worships in 8 counties – what you’re then saying is and we will serve you on Mon – Fri from 10am to 5pm. What? Ummmm…and I should join because????
Commerce Bank (now TD Bank) built an amazing brand on the notion of becoming the fast food of banking. Get in. Get out. Do it seven days a week. 7am to 7pm in most locations.
I also think the member rewards (read aggregate-gag-horrible-matrix-punitive-never rewarding) programs need to die a grizzly death as well. C’mon. Most of those programs do nothing to reward the $50k+ aggregate (unless they are crazy money order users) but do everything to punish the low balance member.
Checking account “types” need the plug pulled. In this decade we should have the flexibility, technology and balls (there I said it) to let members BUILD their own checking product. Don’t make me fit into one of your crazy concoctions. The premier checking or the silver premier with a twist. Buh Bye…..
Brochures. It’s 2010. If your brochure looks like it was written in 1980………..think about it. The brochure is twice as old as the members you want to attract.
Whew…that felt good. Thanks.
Ooops – I meant to say “self-cannibalization” in regards to Apple. I’m not sure what my fingers wanted to say….
Great post and definitely something every credit union should look at…what to stop doing! It is a difficult process for sure, but it is as important, if not more important than creating new stuff. Often it is these old products, services, internal processes, etc that cost the credit union time, money and resources and prevent the credit union from moving forward and offering what members really want and need!
The trick is to find a new possibility/maturity curve that originates from the peak of the previous norm. See: http://cioinnervoice.files.wordpress.com/2009/04/s-curve-r6.jpg
I think the “quit” mentality is appropriate when the “evolve” mentality fails, when there is no next S-curve in the service, model, or technology.
As you appropriately say, it’s more of an art than a science. Solid post.
PS. I hear Jerry might be taking over for Conan O’Brien. New S-curve?
I’m rockin’ with the “quit” mantra Kelley – you nailed it!
Ooh, I can think of a couple of things:
1) Overdraft fees. It’s the most un-credit-union thing we still do, by far. I bring this up every so often, just to be an agitator…
2) “Banker’s” hours. Guess when most people have the time to buy cars, motorcycles, RVs, and boats? Saturday. Now guess when almost all CU lending departments are closed up tight? Even if the doors aren’t open, a loan officer or two could process and close one helluva lotta loans on Saturday.
3) I agree wholeheartedly with the thoughts above regarding checking accounts and brain-cramping all-encompassing reward/punishment programs. People like simple. You attract more flies with honey than vinegar, and all that. The name “checking account” will probably stick around for a good long while, but the lines will start to blur.
@Denise As always, thanks for your brain. Great comments.
A few nights ago I watched the history of Apple. It was a fun trip down memory lane as I remembered all these old products that at the time were so amazing. Remember the Cube? The iMac that came in colors and looked like bubbles? Yeah – I had forgotten them too. It would be so easy for them to stop and say – muh ha ha – look at this that we created. But no, they come up with something even better. Its wild.
You are so right on the bankers hours. Don’t most people work 9-5? So does this mean we can only realistically serve the unemployed, 3rd shift employees and vampires? Wonder what it would be like to have a branch that was only open after 5pm and on Saturdays?
And you’re right – if a Teller has to get out a magnifying glass to explain a product to a member – it’s time to quit.
@Carla Great point. Wonder how much energy, money and resources gets wasted on things members don’t really need. We could recycle, reuse, rebuild.
@Elliot I LOVE the S curve. It’s so much more optimistic than saying that everything must die. (although it was sorta fun and dramatic to say that) You are SO right. Many things can be recycled into something better.
So maybe it’s not that the problems will ever go away. I imagine members will always need a way to keep money (or whatever currency is defined as being) safe and easily accessible with tools to help them manage it – Just the way we provide the solutions may change.
I hadn’t heard that Seinfeld is in for a come back. Can’t wait. That was a great show.
Is Al Gore an S Curve?
@Linda Thanks Lady!
@Brian Overdraft Fees Rule. Just kidding.
Good point on the Saturday hours for lending. Even with indirect lending, we still lose so many opportunities by members that don’t fit that mold. We should be convenient to them not us.
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