2011%20leverage%20strategic%20plan%20final%20120810

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2011 Strategic Plan

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Growth Strategy• Increase penetration and sales of existing products and

services within Alabama and Florida.• Develop new markets for existing products and services

outside our states with an emphasis on the Southeast.• Partner with other system partners to bring best in class

products and services to the Southeast.• Selectively manufacture new products where there is a

clear need and business opportunity in the marketplace.• Acquire our invest in existing businesses with a proven

track record of success.

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Manufactured Products

Value-Added & Distributed Products

Product Development

Sales Marketing

Transactional ServicesDebit CardsCredit CardsChargeback ServicesGift CardsCUSC

CU-ACE

Ventelligence

HRxRecruitingPEO/ASO ServicesSalary Administration

Value-AddedProductsRemarketingSprintOffice Depot

Distributed ProductsCUNA Mutual Group NADA/BlackbookJohn M. FloydTelecom RecoveryNewGroundInvest in AmericaCUNA Strategic Services

Develop new ideas and solutions.Enhance or improve existing products.Market research.Develop product Model.Determine pricing, revenue and ROI Models.Prepare businessCase.Identify vendors.Perform due diligence.Launch.

Develop sales plans and strategies.Generate leads.Identify areas of need.Stimulate interest.Diagnose needs and create proposals.Close sales.Sales implementation and follow-up.

Manage brand for LEVERAGE.Develop positioning statements and marketing plans.Promote LEVERAGE products.Manage website Content.

CORE FUNCTIONS (BUSINESS UNITS)

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Manufactured Products | Transactional Services

Objectives• Provide a competitive credit card product to credit

unions that will effectively serve the member and grow income for the credit unions.

• Maintain 100% renewal of current credit card business.

Credit CardsCredit Cards

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Strategies• Determine long term strategy for

processing partner.• Expand product features to

include live after hours support regardless of processing partner.

• Develop strategy for combining programs for improved billing and performance tracking.

• Develop consistent proposal template for Business Development and Account Management staff.

• Determine penetration opportunities for new sales.

Key Activities• Develop consistent pricing and

proposal format available for both Business Development and Card Services Account Manager.

• Continue to look for a processing alternative.

• Continue dialogue with CO-OP Financial Services regarding the feasibility of live after hours support.

• Educate Business Development and Account Manager on features and of current product offering.

• Develop a list of contract renewal dates between credit union and FIS.

• Evaluate consultative services for organic growth.

Credit CardsCredit Cards

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Objectives• Maintain 100% renewal on existing debit card

agreements.• Assist credit unions in achieving a 5% growth

annually in debit card transaction volume.• Increase market penetration from 31% to 60% over

the next 5 years.

Debit CardsDebit Cards

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Strategies• Determine contract renewal dates

for Florida debit clients.• Conduct regional promotional

training meetings for existing clients.

• Target all credit unions for surcharge free network access potentially creating opportunity for future processing business.

• Build awareness for CO-OP Surcharge free ATM network, processing services, and other related products as appropriate.

Key Activities• Closely monitor all migration activities

for accuracy and keep CO-OP accountable when there are issues.

• Standardize CO-OP billing in a way that is easily understood by existing clients.

• Standardize proposal documents for consistency going forward.

• Utilize and promote the use of “canned” webinars for ongoing training.

• Continue to closely monitor FIS activities with current debit clients to keep from jeopardizing any existing business.

• Continue to pursue Call Center opportunities.

Debit CardsDebit Cards

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Objectives• Provide credit unions with a competitively priced and

effective alternative to core processor chargeback programs.

Chargeback ServicesChargeback Services

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Strategies• Achieve cross training between

Cardholder Recovery and Card Services to better support both areas in times of need.

• Complete more extensive Gift Card training to help support growing Florida client base.

• Add to number of staff available for password reset services and dispute analysis.

Key Activities• Add additional scanning capability

either through an additional scanner or utilize existing copying equipment if security can be maintained.

• Get staff to proficient enough to free Director to process bond claims in a timelier manner.

• Cross train with Card Services staff in order to share resources when there are absences, vacations, etc.

Chargeback ServicesChargeback Services

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Objectives• Provide a profitable and efficient gift card program to

credit unions.

Gift CardsGift Cards

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Strategies• Develop creative promotional

offerings to incent change from existing programs.

• Develop programs allowing for donation of portion of proceeds to charitable organizations.

Key Activities• Provide additional training and access

to continue timely support.• Improve consistency of all contact staff

in promoting the product.• Provide “seasonal” promotion to take

advantage of peak sales periods throughout the year.

Gift CardsGift Cards

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Key Performance Measures

’10 Goal ‘10 Actual

’11 Goal ’11 Actual(1Q)

’11 Actual (2Q)

’11 Actual(3Q)

’11 Actual (4Q)

Transactional Services

Credit Cards

# of Credit Unions on Program

85 85 85

# of Cards Outstanding

89,587 120,000

Gross Credit Card Revenue

$320,000 $428,375

Debit Cards


55 55 57

# of Transactions 56,025,640 55,000,000


$1,708,782 $1,368,336

Chargeback Services

# of Transactions 12,500 11,000

Gift Cards


80 94

# of Cards Sold 13,478 17,000

Gift Card Revenue $26,956 $39,870

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Manufactured Products | CUSCObjectives• To provide Alabama credit unions with an efficient

and cost effective delivery network for transactional member services.

• To create a brand for CUSC of Alabama.• To grow the number of outlet locations for member

access to transactional services.• To grow the number of transactions performed by

participating credit unions in the network.• Investigate new sources of revenue for the

corporation.

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Management Agreement for CUSC Operations

Priorities Key Activities Progress Update

Product Mix Research and develop new transactional products and services.

Pricing Review existing pricing model.Examine pricing strategy to incent creditunions to join the network.Develop pricing strategy for core system expenses.

Certification Reimbursement

Examine opportunities to reimburse usersfor certification fees to join the network.

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Management Agreement for CUSC Operations

Priorities Key Activities Progress UpdateTraining & Support

Review current training and looks for ways to improve delivery to network credit unions.Expand delivery of onsite training to network creditunions.Increase operational support to outlet locations.Decrease time of audits for outlets.

User Survey Create and disseminate a user survey to gauge user satisfaction with the network.

Outlets Target new outlet locations in areas where servicegaps exist.Utilize demographic analysis to assist with outlet placement.

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Management Agreement for CUSC Marketing


CUSC Brand Review current logo and perceived brand.

Website Redesign website to make it more functional and user friendly.

Marketing Develop a comprehensive marketing strategy that includes a turn-key marketing program for network credit unions.Explore opportunities to participate in LSCU statewide brand campaign.

Member Communications

Create an electronic quarterly member publication.

Sponsorships Look for opportunities to exhibit at League and other system partner events.

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Management Agreement for CUSC Sales


Network Growth Develop an aggressive outreach plan to attract Non-participating credit unions onto the network.Utilize demographic data as a sales tool for increased credit union participation.

Conservation Complete a network business review (status of the network) with each user on a yearly basis.

Non-User Contacts

Visit ¼ of non-users on a quarterly basis.

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Management Agreement for CUSC Structure & Governance


Management Agreement

Review current Management Agreement and make recommendations to the Board for changes.

Bylaws Review Bylaws and make recommendations to the Board for changes.

Resources Develop a chart of LEVERAGE resource assignments for performance of CUSC activities.

Consolidation Research the advantages and disadvantages of consolidating CUSC with the Florida Credit Union Shared Services (FCUSS).

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Management Agreement for CUSC Key Performance Measurements

Goals Target Actual

Outlet Growth 7 New Outlets

New Issuers 4 New Issuers

Transactions 886,000 Total Transactions

Pricing Strategy Review Complete by beginning of 3rd

Quarter

Bylaw Changes Complete by end of 2nd Quarter

Brand/Marketing Review Complete by end of 1st Quarter

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Goals Target Actual

Outlet Income Increase outlet income by 10%

Management Contract Update Management Contract by end of 1st Quarter

Satisfaction Survey Complete user satisfaction survey by end of 3rd Quarter

Demographic Mapping Purchase mapping software and user data by end 2nd

Quarter

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Goals Target Actual

User Data Mapping Complete and disseminate demographic map data to network users by end 4th Quarter

User Communication Create quarterly user communication by 1st Quarter

Conservation Complete network review visit with each user by end 4th Quarter

Sales Plan Complete sales plan by end of 1st

Quarter

Turn-Key Marketing Plans Complete by end 2nd Quarter

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Manufactured Products | CU-ACE

Objectives• Provide credit unions with a high quality, cost

effective audit and compliance service. • Achieve a 10% annual revenue growth rate.

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Manufactured Products | CU-ACE

Strategies• Improve efficiencies to allow for

more billable time for auditors.• Develop professional marketing

and proposal materials.• Build awareness for CU-ACE’s

services in Florida and with non- affiliates in Alabama.

• Focus on organic growth of services with existing clients.

• As capacity allows, target credit unions in the Florida Panhandle.

Key Activities• Add a shared compliance staffing

model to product mix.• Streamline Information storage

practices.• Improve efficiency of billing processes.• Develop more efficient and automated

time keeping methods.• Enhance the proposal format.• Develop more extensive marketing

and presentation materials.

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’10 Goal ’10 Actual


’11 Actual (2Q)

’11 Actual(3Q)

’11 Actual (4Q)

CU-ACE# of Invoices 385 346

Gross Revenue $625,310 $488,800

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Manufactured Products | Ventelligence

Objectives• Provide leading-edge purchasing services for credit

unions.• Establish Ventelligence as the ePurchasing

resource for credit unions.• Become a resource for business intelligence about

suppliers for credit unions.

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Manufactured Products | Ventelligence

Strategies• Target credit unions for

participation in a buying group.• Increase full usage of the product

by existing customers.• Educate potential users about

ePurchasing.• Enlarge out-of-core market

distribution.• Enlarge the buying group.

Key Activities• Target credit unions outside of

Alabama and Florida.• Develop enhancements to the existing

product.• Provide more opportunities for

education and information on the values of ePurchasing.

• Provide additional support to current users for full implementation.

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’10Goal

’10Actual

’11 Goal ’11 Actu

al(1Q)

’11 Actual (2Q)

’11 Actual(3Q)

’11 Actual (4Q)

Ventelligence# of Users 75 63 73

# of Auctions 25 10 21

Gross Revenue $130,000 $295,000

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Manufactured Products | HRx

Objectives• Provide high quality CEO searches for small to mid-

size credit unions.• Provide high quality Executive Searches for mid-size

to large credit unions.• Stay in the marketplace and explore opportunities for

future growth.

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Manufactured Products | HRx

Strategies• Maintain strong relationships with

PEO/ASO vendors. • Build greater awareness for HRx

executive search services with the small to mid-size credit unions in the Southeast.

Key Activities• Protect our current revenue stream

from existing partnerships.• Deliver searches to the small to mid-

size credit unions in the Southeast.• Re-evaluate the current HRx model;

look for opportunities to partner with national firms.

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’11 Actual (2Q)

’11 Actual(3Q)

’11 Actual (4Q)

HRx# of Executive

Searches 4 4 5

Gross Revenue – All HRx

$120,300 $171,350

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Value-Added Products/Vendor Management

Objectives• Add 50 new credit unions per year to the

remarketing service over the next 5 years.

RemarketingRemarketing

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Strategies• Continue to concentrate growth

efforts for program in Alabama and Florida.

• Work through league service corporation partners to develop program in other states.

• Create awareness through quarterly publications, email campaigns and industry publication press.

• Increase number of credit union vehicles sold via TitleAuctions channel.

Key Activities• Involve sales staff in “Day at Auction”

meetings.• Create process for regular

communication schedule with all credit union partners.

• Conduct business reviews on an semi- annual basis with large credit union clients.

• Regularly promote service through quarterly publication and E-Signal.

• Work with Cooperative Initiatives Department staff to create program and implementation process for SAS CUs.

• Enhance the title auctions product.

RemarketingRemarketing

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Objectives• Achieve 100% renewals.• Capture 60% of the potential market over the next 5

years.

SprintSprint

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Strategies• Continue to concentrate growth

efforts for program in Alabama and Florida.

• Develop turnkey sign-up package and marketing materials that will minimize the amount of time it takes to sign-up or renew CUs.

• Adhere to regularly scheduled meetings and calls with IIA team and state based resellers.

Key Activities• Work with Management Team and

sales team to effectively reach larger opportunities.

• Utilize website, email campaigns, Signal and eSignal to promote program on a regular basis.

• Identify opportunities with credit unions that have strong business account relationships.

• Work closely with state based resellers to create credit union promotions.

SprintSprint

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Objectives• Achieve $10,000,000 in annual purchases by credit

unions by 2016.

Office DepotOffice Depot

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Strategies• Continue to promote brand

awareness.• Focus on organic growth and

increase average spend per credit union.

• Rejuvenate strategic state league service corporation participation.

Key Activities• Spark interest in existing state league

service corp. partners and maintain regular, consistent contact.

• Offer semi-annual business review to individual league service corps.

• Create on-boarding process for new sign-ups.

• Utilize all points of LSCU and LEVERAGE contact to educate credit unions on program benefits and differentiation of BSD vs. Retail Program.

Office DepotOffice Depot

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Objectives•• Market and sell a variety of top quality products and Market and sell a variety of top quality products and

services on behalf of selected vendors.services on behalf of selected vendors.•• Earn a minimum of $50,000 in annual revenue for each Earn a minimum of $50,000 in annual revenue for each

distributed product or service.distributed product or service.

Distributed ProductsDistributed ProductsValue-Added Products/Vendor Management

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Strategies• Continue to promote John M.

Floyd Association Services to credit unions in Florida and Alabama.

• Promote NADA with a focus on moving credit unions from paper guides to the on-line service.

Develop standard guidelines for positioning, marketing and delivering our non-top line products.

Key Activities• Review contractual agreements. • Re-assign internal liaisons.• Limit website exposure of partners.

Distributed ProductsDistributed Products

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’10 Goal ’10 Actual ’11 Goal ’11 Actua

l(1Q)

’11 Actu

al (2Q)

’11 Actual(3Q)

’11 Actual (4Q)

Value Added Products

RemarketingGross Revenue $322,500 $213,000 $258,750

# of Cars Sold 6450 4262 8,000

Title Auction Cars Posted

600 521 700

Title Auction Gross Revenue

$95,000 $69,000 $75,250

Sprint# of Credit Unions 45 55 80

Gross Revenue $325,000 $442,000 $701,500

Office Depot# of Credit Unions 1250 1146 1,200

Total Purchases $4,300,000 $3,950,000 $5,000,000

Distributed Products

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Exhibit & Sponsorship Sales

Objectives• Provide mutually beneficial opportunities for system

partners to support the League and Leverage through sponsorship at LSCU & Affiliates events.

• Provide a revenue stream that supplements the cost of attending these events for member credit unions.

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Strategies• Target past exhibitors and sponsors

for 2011 AC&E.• Promote AC&E to potential new

exhibitors.• Develop link between sponsorship

levels, opportunities and additional opportunities to advertise.

• Create an “Annual Opportunity” package for strategic partnerships.

• Research other association sponsorship and exhibit activities.

• Promote Development Conference to potential new exhibitors.

• Work with all departments to assist with additional sponsorship opportunities.

Key Activities• Define marketing department’s

process as it relates to fulfillment of sold sponsorship opportunities.

• Establishing earlier timeframes to begin sales process.

• Create annual sponsorship packages for key strategic partners.

• Increase awareness and value of exhibit/sponsorship opportunities through quarterly Signal magazine advertising.

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’11 Goal ’11 Actu

al(1Q)

’11 Actu

al (2Q)

’11 Actual(3Q)

’11 Actual (4Q)


Exhibit Revenue $235,000 $291,268 $$321,547

Sponsorship Revenue

$154,000 $124,666 $162,000

Signal Advertising Revenue

0 $12,000 $18,000

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Product Development

Objectives• Develop innovative new products for our credit

unions that improve efficiency, reduce expenses, increase revenue for credit unions and provide revenue to LEVERAGE.

• Develop partnerships with other system leaders to bring proven products and services to our market.

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Product Development

Strategies• Where needed, utilize outside

consultants in development process.

• Involve sales earlier in the development process.

• Refine the launch process.• Develop methods of defining value

for making product development decisions.

• Increase speed of movement of products through the development pipeline.

Key Activities• Train and develop new Director of

Product Development.• Prioritize projects; utilize product

development pipeline report to keep projects on track.

• Develop “Product Teams” from across the organization to work on new project development.

• Get more input from credit unions.• Utilize outside consultants when

needed.• Evaluate life-cycle and performance of

current products.

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Marketing

Objectives•• Grow awareness and credibility for the Grow awareness and credibility for the LEVERAGE LEVERAGE

brand.brand.•• Maintain a high quality and creative marketing Maintain a high quality and creative marketing

function for LSCU & Affiliates.function for LSCU & Affiliates.

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Marketing

Strategies• Focus on making the LEVERAGE

brand a well-known name among credit unions and partners.

• Develop a marketing plan specifically for LEVERAGE.

• Define how partners and manufactured products will be positioned by LEVERAGE.

• Assist sales team in developing content and messaging for individual products/services.

• Continue providing marketing support to Association Services.

Key Activities• Develop better process for intake of

projects.• Establish timeline for each project

once content is submitted.• Identify project priority at the beginning

of each project.• Pre-plan content for publications, i.e.,

eSignal, Signal, monthly LEVERAGE emails, etc.

• Look for greater synergy and collaboration between Marketing and Communications staff.

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Sales

Objectives• Grow penetration and revenue for LEVERAGE

product lines.• Develop a distribution system that establishes

LEVERAGE as the preferred partner for attracting the best products and services provided by vendors.

• Develop market penetration opportunities outside Alabama and Florida.

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Sales

Strategies• Increase product and service

sales as well as market share in core and non-core markets.

• Develop expert level product knowledge.

• Develop superior relationship with credit union.

• Create best-in-class professional consultation and education of products and services.

• Improve workflow efficiencies.

Key Activities• Build brand awareness in core and

non-core markets.• Offer products in non-core markets.• Expand on building long-term credit

union relationships.• Train sales staff and integrate

technology more fully into the sales support function.

• Train CU-ACE and Cooperative Initiatives staff to cross-sell products and services.

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’11 Actual (2Q)

’11 Actual(3Q)

’11 Actual (4Q)

SalesCUNA MutualGross Revenue $1,800,000 $1,826,767

Points Earned 18 18 18

Ventelligence# of Users 75 63 73

# of Auctions 25 10 21

Gross Revenue $130,000 $295,000

HRx# of Executive Searches

4 4 5

Gross Revenue – All HRx

$120,300 $171,350

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’11 Actual (2Q)

’11 Actual(3Q)

’11 Actual (4Q)

Transactional Services

Credit Cards


85 85 85

# of Cards Outstanding 89,587 120,000


$320,000 $428,375

Debit Cards


55 55 57

# of Transactions 56,025,640 55,000,000

Gross Debit Card Revenue

$1,708,782 $1,368,336

Chargeback Services

# of Transactions 12,500 11,000

Gift Cards


80 97

# of Cards Sold 13,478 17,000

Gift Card Revenue $26,956 $39,870

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’10 Goal ’10 Actual ’11 Goal ’11 Actua

l(1Q)

’11 Actual (2Q)

’11 Actual(3Q)

’11 Actual (4Q)

Value Added Products

RemarketingGross Revenue $322,500 $213,000 $258,750

# of Cars Sold 6450 4262 8,000

Title Auction Cars Posted

600 521 700

Title Auction Gross Title Auction Gross RevenueRevenue

$95,000 $69,000 $75,250

Sprint# of Credit Unions 45 55 80

Gross Revenue $325,000 $442,000 $701,500

Office Depot# of Credit Unions 1250 1,146 1,200

Total Purchases $4,300,000 $3,950,000 $5,000,000

Distributed products

2011%20leverage%20strategic%20plan%20final%20120810

Documents

sales of existing products

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leverage products

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credit unions

business development

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