Innovation is crucial to the survival of credit unions, but having an idea is not enough. In 2010 credit unions would be better served to follow in the footsteps of little-known Louis Breguet than world-renowned Leonardo Da Vinci. This is the year of putting ideas into action, or risk having our ideas be shelved for centuries.
”...I have discovered that a screw-shaped device such as this, if it is wellmade from starched linen, will rise in the air if turned quickly…” Leonardo Da Vinci – Codice Atlantico
In 1483, Leonardo Da Vinci sketched his idea for the Aerial Screw, an assembly of iron wire, linen, and reed that can best be described as an early model of the modern day helicopter. Like most of Da Vinci’s ideas, he never built, or even attempted to build, this flying machine.
It was an idea. A really good one, mind you, but just an idea.
In 1907, Louis and Jacques Breguet built a helicopter model that flew every bit of two inches off of the ground. By 1930, Corradino D’Ascanio had built a helicopter that could fly 59 feet in altitude and stay in the air for nearly nine minutes. In 1932, Boris Yuriev and Alexei Cheremukhin constructed one that reached an astounding altitude of nearly 2,000 feet. By 1936 Louis Breguet oversaw the construction and testing of a machine that flew an impressive 75 miles/hour and climbed to 518 feet in altitude.
Da Vinci’s Aerial Screw? Modern engineers agree that it was a flawed design that never would have worked.
The credit union movement has its fair share of Da Vincis, who are endlessly coming up with ideas to attract new business, develop tighter relationships with members, and develop a more sustainable business model. They sketch, and they talk, and they write about some truly great ideas. We need these people.
The credit union movement is sorely lacking in the Breguet department. These people understand the value of putting ideas into action. They use their imagination to tweak existing ideas so that they can be brought to life at their credit unions. The Breguets will never ascend to the innovation credentials as the Da Vincis, but they often enjoy better results. We need these people as well.
My take? 2010 is shaping up to be a make or break year for credit unions. The time to think is not over, but the time to “do” is most certainly here. Action is what makes a difference. We need to make a difference now. I am banking on the Breguets becoming the 2010 credit union movement MVPs.
Comments
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Good post Matt. It does seem like there is a never ending plan, think, contemplate, repeat cycle going on. Doing would be good.
Also, I would never have imagine the phase “I am banking on” to come from your keyboard. :)
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I must admit…iWork’s auto grammar checker failed me on that one. Maybe it thought I meant land that encloses a body of water. :)
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Matt, another way of saying this is that Ideas are a dime a dozen and implementations are gold. I’ve though of CUs as slow to innovate but quick to cluster. Filene should do research on how ideas flow through Credit Unions. Do they start at the staff level? Is it the CEO who brings ideas? And once the ideas are in play, what moves them or impedes them. Is it business model, or personal effort or alignment iwth mission? I suspect that Credit Unions have a very different innovation dynamic than stock corporations.
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@Bill
Your career is proof positive that impact requires action. You have proven over and over again that credit unions can make a difference…but only because you have decided to run with ideas.
I think that mapping ideas within credit unions would be a very interesting study. What are the common hurdles to implementation? How defined must the proof of concept be before giving an idea the go ahead? Does it matter whose idea it is? Does it matter who’s providing the proof of concept?
Interesting questions, and insightful comment, Bill. Thanks!
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The ideas that get implemented at WCCU tend to be the ones acted on right away. It seems the more time that passes, the less chance of getting off the ground. The ready, fire, aim principle seems to work best for us.
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@Devora
We often underestimate the importance of passion. WCCU’s likely most passionate about an idea when they first discover it (through whatever method, internally or externally). What better time is there than that to move forward?
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If you reverse the motion of the device, it could be an invention developed by a banker to screw people into the ground.
I agree. In 2010, stand up, take action, get noticed. We are far from being out of this economic cycle, and the “people helping people” philosophy of credit unions will lift the movement to new heights.
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This blog subject reminds me of an article Maurice Smith, CEO Local Government FCU share with me years ago. Fortune magazine “Why CEOs Fail It’s rarely for lack of smarts or vision. Most unsuccessful CEOs stumble because of one simple, fatal shortcoming”. http://money.cnn.com/magazines/fortune/fortune_archive/1999/06/21/261696/index.htm
The article repeats what Matt has reported. Not being able to create systems and collaboration around ideas is where all organizations and industries fail. Furthermore, our industry as a whole is in a defensive rather than offensive posture. We are not being contrarians like Buffett, but are pulling back into a shell that proved to be safe when margins were 3%. Those days are gone forever, so the industry must evolve into a sustainable model that leverages the tax exemption rather than being inefficient in how we provide our services. The model has been broken and CU management requires Divci ideas and Welch like implementations for success. For the most part our industry, which I love, continues to run the same plays with little success in the “new market’. The financial services sector it being transformed and it is imperative credit unions experience the pain associated with renewal in order to be resurrected as a sustainable affordable solution for our members. The industry has never been faced with greater opportunities to make a difference in our members’ lives. New ideas need to have a greater audience, and more importantly, implemented by leaders that challenge the model that has been successful in the past.
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