Operational Excellence: NSP’s Take on SRM’s Last 4 Pillars
August 12, 2021
Earlier this week in our previous blog post, we discussed SRM’s Jesse McGannon’s first three pillars of operational excellence. In doing so, we further highlighted the importance of location strategy, member experience and brand differentiation, and organizational redesign. Now we will visit and elaborate on the final four pillars.
The fourth pillar, something not only credit unions are taking part in, is product/project portfolio rationalization and restructuring. There is a saying that “you should never let a crisis go to waste.” As companies come out of a dark period based on the pandemic, there are opportunities to better align resources against their biggest needs. NSP believes it is always wise to be “fit for growth” through a careful analysis of their resource needs so they are primed to drive revenue as the pandemic ends.
Reassessing non-standard procedures implemented during lockdown, or process re-engineering, is the fifth pillar. So many process decisions had to be made at the drop of a hat in response to the rapidly changing environment as a result of COVID, and now it is time for these credit unions to step back and rework these processes. NSP believes that companies need to constantly reassess how they manage their business and adjust based on market conditions. They must continue to be agile with technology and the ever-changing yet ever-present role it plays in the landscape. Rule of thumb: sameness is NOT greatness.
As technology continues to make great strides, intelligent automation, the sixth pillar, is becoming another key consideration for credit unions. Businesses are now able to augment human expertise and improve member experiences with these new innovations. Credit unions are adjusting to “IA” technology, but those who do not fully embrace and utilize it to their advantage will quickly be left behind.
The final pillar McGannon discusses is supplier contracts. With a myriad of vendor relationships present for any business, including credit unions, it is vital to analyze and review each one. Given how fast technology innovations are happening in the marketplace, the vendor process can slow dynamic development and advancement. That being said, NSP believes that careful review of the contractual process is nonetheless critical for long-term success.
NSP’s Closing Thoughts: Credit unions and banks must become more agile across all of their operations to drive critical digital innovation - particularly within the tech stack. If these operational processes and tools do not work together cohesively, the member experience is undoubtedly impacted. NSP facilitates this nimble mentality by serving as vital connective tissue between Fintechs and FIs and driving innovation into the marketplace.