Organizing for Effectiveness and Growth in Cooperative Financial Services: A Focus on the Americas

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
October 14, 2014
Other
Latin America, North America

Abstract

Study Highlights Key Organizational Imperatives for Financial Services Cooperatives in Search for Growth

An Oliver Wyman study of over 25 cooperative financial services institutions (cooperative banks and credit unions) in Canada, the US, Mexico, and Latin America underscores the important role of organizational effectiveness in the pursuit of growth. 

The report was presented at the International Summit of Cooperatives 2014 in Quebec, where leaders of cooperative and mutualist enterprises from around the globe gathered to discuss shared concerns about current and future business challenges.  The summit had over 3,000 attendees.

Drawing upon interviews with executives and senior stakeholders, Organizing for effectiveness and growth in cooperative financial services:  A focus on the Americas shines a light on key organizational levers that cooperatives can — and should — exercise to optimize their long-term success. 

Regardless of their individual circumstances, the report argues that all financial cooperatives stand to gain by addressing seven key imperatives: 

  1. Being conscious and deliberate about their purpose
  2. Creating an organizational structure empowered for growth
  3. Optimizing governance processes
  4. Allocating resources for growth and effectiveness
  5. Building a high-performance, entrepreneurial management model
  6. Aligning their human capital — their employees and managers — with the growth agenda
  7. Attending to the importance of informal organizational activities

“These findings have important implications for the ways cooperatives organize, deal with their members, source and grow talent, and work both individually and in unison to innovate and grow,” said John Boochever, Oliver Wyman senior partner. “Participation in the Summit gives Oliver Wyman the unique opportunity to extend our field of vision, gain visibility within the global cooperative sector, further invest in understanding the economics and opportunities of the movement, and contribute meaningfully to the dialogue on organizational effectiveness in cooperative financial services.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Introduction

11

 

About the Study

11

 

The Cooperative Financial Services Landscape in the Americas Today

15

 

Key Industry Challenges

18

Moving Beyond “Value Vs. Values”: The New Imperative for Growth

21

 

Why Size Matters

21

 

What is Driving the Appetite for Growth?

25

Main Study Findings: Testing Key Organizational Hypotheses

29

 

Does Structure Matter?

29

 

Is the Underlying Health and Strength of Membership a Key Differentiator?

33

 

Are Coops that Innovate More Around the Member Experience Better Able to Differentiate Their Products and Services?

35

 

Does the Approach to Talent Translate to Greater Effectiveness and Higher Growth?

38

 

Does the Role of Governance Affect Organizational Agility?

40

Recommendations for the Organizational Agenda in Cooperative Financial Services’ Strategy

45

 

Optimize Member Management

46

 

Enrich Employee Bench Strength

47

 

Champion Relevancy by Rethinking Convention

48

 

Turbo-Charge Collaboration

50

 

Hone the Innovation Edge

52

Practical Applications: Implications for the Organizational Blueprint

55

Appendices

59

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