Alignment: The Foundation of Credit Union Success

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Consistency is a defining characteristic of successful brands like Starbucks, McDonald's, and Southwest Airlines. These companies deliver a unified experience regardless of location. While they may face occasional challenges, their consistent brand identity and unwavering commitment to their core purpose allow them to weather storms and outperform competitors. Consumers value this reliability, and these brands have earned their loyalty.

What distinguishes these successful brands? They have achieved structural alignment, where their organizational structure, processes, and strategies seamlessly support their core mission. In contrast, their competitors often struggle with misalignment, where strategy and execution are disconnected.

Consider the example of a full-service airline attempting to compete with Southwest by offering more amenities at higher prices. Their advertisements may promise personalized service and comfort, but the reality of cramped planes and limited amenities contradicts this message. This misalignment between strategy and execution leads to inconsistency, undermining the airline's performance.

Defining Structural Alignment

For credit unions, structural alignment means that departments, processes, workflows, job functions, and employees work in harmony to support the organization's long-term vision and goals. Achieving this alignment can be challenging, but it is crucial for consistent member service and overall success.

Key Considerations for Achieving Alignment

Three key areas require attention to achieve and maintain structural alignment:

The Strategic Plan: Does the organizational structure effectively support the objectives outlined in the strategic plan? Regular assessment and adjustment are necessary to ensure alignment.
Office Politics: It's crucial to prevent internal politics from influencing resource allocation and undermining strategic priorities. Resources should be distributed based on strategic needs, not political influence.
Structural Flexibility: The ability to adapt and modify the organizational structure in response to changing strategic needs is essential. This requires strong leadership with expertise in both strategy and organizational design.

The Impact of Alignment

Credit unions that prioritize these areas will be better positioned for success. Clear strategic plans, minimized political influence, and a flexible structure contribute to consistent service delivery and a positive member experience. By fostering alignment, credit unions can build strong, enduring relationships with their members and achieve their long-term goals.

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