"The problem with trying to separate perception from reality in the confidence crisis gripping global finance is that perception is the biggest factor shaping reality."
I find it interesting how, when planning strategically, we often we fail to truly consider the impact of "news" on the psyche of local consumers. I have facilitated a fair number of sessions, and in many cases the local economy in which a client operates is not as bad as national averages. This leads to a false sense of security for planning participants - not because they feel they are immune to downturns, but because they believe consumers are immune to the constant hum of negative perspective. My concern is that consumers will begin to believe they represent the average if they hear it enough. Perception then becomes reality regardless of the real economic situation, ultimately having a measurable impact on the performance of their trusty credit union.
More than ever, we are encouraging planning clients to consider strategy for effectively informing members of the status of the "real" economy - that is, the economy in which members live and the credit union operates. It is critically important that members be given informative guidance on local trends that are meaningful, and, no matter whether the trends are positive or negative, how the credit union can play a role in helping members make situationally-appropriate financial decisions.
In your planning session this fall, make sure your participants understand both the local and national economies, and certainly the differences between the two. Then, ensure discussion on how to maximize the uniqueness of your own circumstances. With big-name banks suffering huge declines (imagine your response if a few years ago someone told you that WaMu might have to sell off its branch network just to survive!), your ability to flexibly adapt to the local scene might just make for one banner year. If effective strategy is defined and executed, you will undoubtedly be able to offer localized support to members unmatched by national competition.
The old saying "all politics is local" certainly can apply to economics as well. Take advantage of your local knowledge, communicate your advantage to members, and in the process build long-lasting relationships that members will come to appreciate and treasure for years to come.
