One CU's Journey In Reengineering Its Business Model

Credit Union Journal, The, February, 2001 by John V. Zells

When I joined IBM Southeast Employees' Federal Credit Union in 1995, the board of directors and senior management team had already determined that the business model needed reengineering. Member and product acquisition costs were high. Household and product profitability were all undefined, and organization-wide sales and marketing results were not adequately measured. IBM's departure from Boca Raton, Fla. (our headquarters) further illustrated the need for a new business model. Although we retained a strong base of core members, Big Blue would no longer be supplying the majority of new enrollment.

As IBM Southeast EFCU Chairman Don Lee pointed out in his opening comments, one logical path forward included a gradual decline in the franchise, perhaps leading to merger or...

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