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Why Strategic Plans Fail — and How to Make Sure Yours Doesn’t

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4 minute read – Many financial institutions invest heavily in strategic planning—gathering data, hosting retreats, and crafting the perfect vision for the future.  But all too often, the best-laid plans get stuck in neutral during implementation. 

Why?  Strategic planning and strategic implementation are two very different disciplines.  Planning is about setting direction; implementation is about making it real.  We’ve seen time and again that the real test of strategy isn’t how inspiring the plan sounds—it’s how effectively it gets executed. 

Planning Gets the Glory.  Execution Gets the Results. 

Strategic implementation is where your organization’s high-level direction gets translated into reality.  It’s where culture, clarity, and alignment either come to life—or fall apart. 

We’ve identified 7 common missteps that get in the way of effective strategic execution.  The good news?  Each one is avoidable. 

  1. Failing to Elevate Implementation

Too often, strategic planning is seen as the “important” part, while implementation is treated as the follow-up.  But execution deserves the same level of rigor, attention, and leadership as planning itself. 

  1. Lack of Clarity

Ask yourself:  What are we really trying to accomplish?  Vague goals like “improve account opening” won’t cut it.  Clear, specific objectives—like “reduce account opening time to under 15 minutes for 80% of new customers”—are essential for alignment and action. 

  1. Not Asking the Big Question

Before committing to a project, ask:  Will our strategy fail or be materially set back if we don’t do this?  Strategic focus requires saying “no” more than “yes.” 

As Warren Buffett famously said, “Really successful people say no to almost everything.” 

  1. Ineffective Strategic Progress Meetings

These meetings should ensure the strategy is advancing—not become bloated updates on every project.  Keep them high-level.  Focus on removing roadblocks, reallocating resources, and keeping priorities sharp. 

  1. Assuming Clarity Is One-and-Done

Clarity doesn’t last forever.  It takes continuous effort to keep strategic objectives front and center as day-to-day pressures mount. 

As we often remind our clients:  Clarity once is not clarity forever. 

  1. Weak Resource Planning

Successful execution starts with knowing what your people can realistically handle. Start simple—go for “roughly right”—and account for known draws on time and energy.  Tools like heat mapping help start valuable conversations about capacity and prioritization. 

  1. Skipping Strategic Implementation Assessments

Assess your ability to execute—before you begin.  Ask: 

  • Are we clear on our culture, resource allocation, and project oversight? 
  • Is project management truly driven by strategy? 

Small course corrections early on can prevent major derailments later. 

It’s Not Just About Managing Projects. It’s About Leading Through Strategy. 

At the heart of successful strategic implementation is leadership.  The kind that welcomes tough questions, values accountability, and ensures alignment from the C-suite to the front lines. 

As Cliff Myers once said, “I do not fear hard questions and I do not fear hard answers.  I fear being blindsided by issues I didn’t even know about.” 

*Portions of this blog were edited with the assistance of AI.

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Future-Ready Leadership: Strategically Planning Your Talent Infrastructure for Long-Term Success

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3 minute read – Strategic planning is second nature for most financial institutions—but when it comes to planning for talent, many organizations still rely on short-term fixes or backfill strategies.  Yet the success of any long-term vision hinges on having the right leaders in place—not just today, but several years down the line. 

As business models transform and technology reshapes customer expectations, the skills and thinking required at the executive level are also changing.  That means leadership teams must be intentionally designed, not inherited by default. 

This starts with strategic clarity.  A organization must clearly define its desired business model and long-term vision.  Without that, talent decisions risk being reactive rather than intentional.  Once there’s alignment on where the organization is headed, you can begin building the team that will get you there. 

Four Steps to Building a Future-Ready Executive Talent Infrastructure 

1. Design the ideal team for the future.
Start by defining the optimal leadership structure and the executive capabilities required to support your evolving strategy.  One size doesn’t fit all—your structure should reflect your unique goals and challenges.  Think about how product delivery and marketing are being reshaped by digital expectations and AI.  How is your structure adapting to meet customers where they are, and to differentiate in an increasingly crowded, hyper-personalized digital landscape?  

Desired leadership traits are also shifting.  Leaders must now be comfortable operating in ambiguity, making swift, sound decisions without all the answers.  Look for multidimensional thinkers—those who can toggle between strategic vision, critical thinking, and creative problem-solving. 

2. Assess your current bench strength.
What talent do you already have—and what’s missing?  Evaluate your current executive team against the ideal state.  This requires honest, often difficult conversations, but understanding your leadership gaps is critical for building the right future capabilities.

3. Chart a strategic path forward.
This isn’t about quick fixes.  Map out the actions needed over the next few years to align your team with your long-term strategy.  That might include development plans, new roles, succession strategies, or external hiring—but it should always be driven by your unique vision.

4. Build the right support layers.
Executives need time and space to think and act strategically.  That means building a second layer of leadership and support that enables them to lead effectively.  Define what supporting talent is needed and make sure it’s aligned to empower, not distract.

Talent is strategy.  The clearer your vision, the easier it is to define, grow, and retain the leadership that will drive it forward.  Building a deliberate, future-focused talent infrastructure ensures your institution is not only ready for what’s next—but leading it. 

*Portions of this blog were edited with the assistance of AI.

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Finance at the Forefront of Merger & Acquisition Opportunities

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As Merger & Acquisition activity continues to be a key strategic lever for growth for credit unions, finance teams are being called on to play a more strategic role in identifying opportunities and shaping financial structures. This webinar explores how finance leaders can elevate their approach and make a greater impact throughout the M&A process.

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Economic Value of Equity: Are Your Gains Real or Market-Driven?

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6 minute read – As interest rates fluctuate and market conditions evolve, financial institutions are seeing shifts in their Economic Value of Equity (EVE).  But are these improvements the result of strategic decisions, or are they merely a function of external forces?  Understanding the key drivers behind EVE fluctuations is critical for making informed financial and strategic decisions. 

The Current Landscape:  What’s Driving EVE Changes? 

A review of large financial institutions (over $1 billion in assets) generally shows an improvement in EVE in the +300 rate environment.  On average, institutions have experienced a 1.7% increase in the economic value of equity ratio in the last half of 2024.  However, these gains are not universal.  Some institutions, particularly those positioning for lower rate environments by extending duration on fixed-rate assets, have seen EVE declines as rates rise. 

For institutions experiencing EVE improvements, asset values—primarily driven by loan portfolios—have increased.  This trend is influenced by two key factors: 

  1. Loan Portfolio Repricing
    Lower-yielding loans originated in previous low-rate environments are rolling off or making up a smaller portion of portfolios.  They are being replaced with loans at higher, current market rates.  In institutions analyzed during the third and fourth quarters of 2024, loan portfolio yields increased by approximately 10 basis points.  As portfolios continue repricing at market rates, asset values improve. 
  1. Impact of Recent Rate Decreases
    The Federal Open Market Committee’s rate cuts have led some institutions to lower rates on select loan products, such as auto loans.  While the rates on new loans have dropped—by an average of 30 basis points—those rates still exceed older loan yields, leading to continued portfolio yield increases.  For some institutions, this combination of rising yields on existing loans and declining market rates has driven asset value gains of nearly 2% in the +300 rate scenario.  However, if interest rates rise again, institutions could see temporary asset losses until portfolios fully adjust. 

Liability Pressures and EVE Balancing Effects 

EVE is not just about asset values—liability movements play a crucial role.  From June to September 2024, asset values increased, but EVE did not rise as much as some anticipated.  While declining rates boosted asset values, they also reduced borrowing rates, which serve as a market alternative for deposit funding for many institutions.  This diminished deposit values, partially offsetting asset gains. 

Heading into the fourth quarter, borrowing rates began rising again, strengthening deposit values.  With both assets and liabilities improving, EVE results have seen additional support.  However, the balance between mortgage rates and consumer loan rates remains a factor—data indicates mortgage rates have increased, while consumer loan rates have declined since Q3.  The overall effect is continued upward pressure on loan values. 

Strategic Takeaways for CFOs in 2025 

For CFOs and finance teams, understanding the forces behind EVE fluctuations is essential for sound decision-making.  While many institutions are benefiting from improving asset values, liability pressures and shifting market alternatives present complex trade-offs.  To ensure long-term financial resilience, consider the following balance sheet priorities: 

  • Differentiate Market-Driven vs. Strategy-Driven Gains:  While many institutions are benefiting from improving asset values, the interplay between loan yields, market rates, and liability values can create complex tradeoffs.  Assess whether recent EVE improvements stem from external conditions or deliberate balance sheet management.  Adjust strategies accordingly to sustain long-term value. 
  • Communication and Education:  Ensure that ALCO members understand what is driving the change in results.  Are balance sheet strategies showing up in results, but being masked by market rate drivers?  Are results showing more/less risk due to market rates when the intent was the opposite?   Non-financial members of ALCO may need education to understand how changes in market rate conditions impact EVE. 
  • Continue to Closely Monitor and Optimize Loan and Investment Portfolio Repricing:  Keep a close eye on the speed at which older, lower-yielding loans are being replaced with higher-rate assets.  Consider stress testing under different rate scenarios to prepare for potential reversals. 

A proactive approach to these factors will help financial institutions position themselves for long-term stability and resilience, regardless of market fluctuations.  By aligning strategic planning with evolving rate conditions, CFOs can ensure their institutions are prepared for changing economic realities. 

*Portions of this blog were edited with the assistance of AI.

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3 AHA’s of Board Succession Planning

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4 minute read – Succession planning often conjures thoughts of leadership transitions, but effective planning at the board level is equally crucial. In our work with financial institutions, we’ve seen that proactive board succession planning strengthens governance and ensures long-term strategic alignment. Below are three key “Ahas” that can elevate your board succession strategy. 

  1. Board Recruitment is an Ongoing Process, Not a Crisis Reaction 

One major realization for many organizations is the importance of maintaining a steady pipeline of potential board candidates. Unlike internal leadership roles, board positions are often voluntary, making recruitment more challenging. 

An “aha” moment here is recognizing that board members themselves are often the best ambassadors. When current members share their positive experiences with their networks, it fosters interest and broadens the candidate pool. To further formalize this process: 

  • Network strategically: Encourage current board members to engage with diverse groups that reflect your institution’s demographics and growth areas. 
  • Be transparent: Clearly define the expectations, responsibilities, and opportunities associated with board roles to attract the right candidates. 
  • Create entry points: Consider using associate board positions or supervisory committee roles as a “get to know you” phase, enabling potential candidates to learn about board functions while offering the organization a chance to assess their fit. 
  1. Succession Planning Goes Beyond Recruitment—It’s About Development

The next aha is understanding that board succession is not just about finding the next person to fill a vacancy—it’s about developing future leaders for those roles. To do this, boards should focus on intentional onboarding and growth opportunities: 

  • Onboarding with a vision: Introduce new members to the board’s structure, officer roles, and strategic objectives early in their tenure. 
  • Cross-functional exposure: Rotate board members across committees to build a broad understanding of institutional priorities. 
  • Leadership preparation: Provide targeted development for officer roles, especially the board chair position. New board chairs often realize how demanding the role is, making early preparation vital. 

One board chair remarked, “I had no idea how much work this would be—the last chair made it look so easy!” A solid development path can help future chairs step into their roles with confidence. 

  1. Align Board and Leadership Transitions to Prevent Disruption

Another powerful insight is the need to coordinate succession planning timelines between the board and executive leadership. Major leadership transitions at both levels simultaneously can lead to significant disruption. 

Key takeaways: 

  • Communicate intentions: Regular discussions about potential departure timelines (even broad estimates) help prevent overlapping transitions. 
  • Stagger retirements: If multiple board members or officers are nearing retirement, develop a phased approach to maintain continuity. 
  • Plan for emergencies: Beyond planned retirements, be ready for unplanned departures with interim candidates or processes to ensure smooth operations. 

One organization described the challenge of losing both their CEO and board chair in the same year, calling it a “perfect storm” of experience loss. Coordinating these transitions in advance can mitigate risks and ensure organizational stability. 

Board succession planning isn’t just about filling seats — it’s about aligning the board’s capabilities with the institution’s strategic goals while ensuring a sustainable pipeline of talent.  

By embedding recruitment, development, and transition coordination into your board’s regular practices, you’ll create a stronger, more resilient governance structure that can adapt to the challenges of the future. 

*Portions of this blog were edited with the assistance of AI.