Rea Leadership Igniting Sustainable Growth in a Shrinking

Rea. Leadership: Igniting Sustainable Growth in a Shrinking Economy Presented by: Will Marré Business Innovation Expert June 18, 2009 We’ll begin sh ortly! Dial-in #: 888 -261 -376 Conference 3 ID: 13479339 1: 00 p. m. – 2: 30 p. m. CT 2009 Deluxe Enterprise Operations, Inc. All Rights Reserved.

To join the web seminar, dial 1 -888 -261 -3763 Conference ID: 13479339 To submit a question online: Click on the Q&A window, located in the lower right-hand portion of your screen. Type in your question and hit the “send” button. If you are in full-screen view, simply click on the question mark icon to open the Q&A window. Your question will only be seen by the speaker and the Deluxe production staff. An audio/visual recording of this presentation will be available on our Reference Library 48 hours after this event. www. deluxeknowledgeexchange. com 2009 Deluxe Enterprise Operations, Inc. All Rights Reserved.

Will Marré Business Innovation Expert & Author - CEO of Rea. Leadership Alliance - Founder of the American Dream Project - Co-founder and former president of the Covey Leadership Center Will’s Books and Projects: • GOOD FORTUNE: Socially-Strategic Capitalism Can Save the World • Save the World and Still Be Home for Dinner • Emmy-winning documentary “Reclaiming Your American Dream” Will’s email address: willmarre@realeadership. com To ask a question over the phone: - Press * 1 on your telephone keypad and the operator will connect you. If you need to withdraw your question, press the # key. 3 2009 Deluxe Enterprise Operations, Inc. All Rights Reserved.

REALeadershi p: Igniting Growth and Innovation on Purpose Will Marre

REALeadership: Whole Enterprise Transformation STRATEGY Marketplace Socially-Strategic Business Model SUSTAINABLE ABUNDANCE Smarketing™ CULTURE Workplace Inside Out BRAND Community

Today’s Objectives • • Macro World: Consumer Opinion/Trends Why we are stuck or struggle What the big opportunities are How to get started igniting growth by doing the very best thing you can imagine

The world has Changed

The Number One Concern Today in America… Personal Economic Autonomy

All but the very wealthy are worried… • Safety, Security, Peace • Economic Opportunity and Security • Healthcare and Retirement • Cost of a Decent Life • Environment and Their Children’s Future SOURCE: DYG SCAN 2007

Age of Cynicism • Crisis of Consumer Trust • Crisis of Employee Engagement

What’s Driving Consumers? 88% of consumers view business as negatively impacting the public good and environmental sustainability. - Mc. Kinsey & Co. Global Survey

What’s Driving Consumers? Consumers 92% 83% 87% 100% 87% say they would switch brands (price 83% say more positive feeling 92%qualityanear equal)have a associated and have companies to one’s of responsibility to companiescauses. support good causes. with good that visibly support good causes. - Mc. Kinsey & Co. Global Survey

What’s Driving Employees? 80% 83% 81% 80% want to work for companies that 81% of employees directly contribute who want to to society but 83% will only trust contribute to social aren’t sure how to companies if it is benefits are NOT find them. environmentally/ SURE WHAT TO DO. socially responsible. Want to work for good companies. Only trust companies if responsible. Want to contribute… not sure what to do. - Mc. Kinsey & Co. Global Survey

Why are you in business?

What Consumers & Employees Want Purpose Must Produce “Good Fortune”

Purpose is Your Business Model • Purpose is Practical • Purpose is Profitable • Purpose is Personal

The new goal of humanity is Sustainable Abundance People + Planet Abundance Sustainable Profit

The Debate is Already Over CLUELESS (What cause? ) REPUTATION (Cause Marketing) Exxon Toyota Chevron GM Monsanto STRATEGY (THE CAUSE) GE Apple Du. Pont A Million Dinosaurs Unsure Intel J&J Virgin Air Fast Followers Laggards Patagonia Ikea Clifbar Starbucks Grameen Bank Newman’s Own Whole Foods Early Adopters

Save the World Sells of 30, 000 Global Brands, the Top 25 are “High Purpose” -P&G

Save the World Pays High Purpose companies financially out perform the general market 15: 1 - Jim Collins

Save the World Wins High Purpose Strategy + Culture High Low Employee + Customer Stockholder 8 to 1 Productivity Talent Retention Margin Firms of Edearment Wharton Business School Pub.

What is the purpose of banking? • Build Self Reliance: –Provide growth capital. –Personal Loans: Education, Housing • Build Quality of Life –Responsible Consumption

Where has your financial institution seen the greatest benefit within the last 24 months? (mark all that apply) a) b) c) d) Growth in Deposits Growth in Customers More Brand Recognition None of the Above

Goal of Any Economic System Maximize Human Benefits

RUSH UPto Civilization Middle Class drives Human Rights + Economic Development § Whole Person Jobs § Tolerance § Useful Technology § Religious Freedom § Environmental Protection § Free Speech § Optimism + Happiness § Free Press § Cultural Integration § Equality Under Law Source: Economist

What Creates Middle Class Access to: HEALTH EDUCATION CAPITAL INFRASTRUCTURE

What’s Your Paradigm?

Revolutions 3 Business Innovation Disruptive innovation creates new products, new methods, new solutions and… Steals dinosaurs’ customers.

The Leaders Challenge Today’s Vision vs. Tomorrow’s Opportunities “Is this the best we can do? ”

All of us ought to do an exercise called: “The Future I Really Want” Describe the world you want to help create.

Micro-Finance More Entrepreneurs Money Village Entrepreneurs Education Consumption Profits Investment

Grameen Bank Loan • Social Collateral • Business Support Meetings • Children Teaching Children

Self-Reliance and Entrepreneurship is a Universal Human Ability.

Micro Credit • • • 133 Million Families 500 million by 2015 $200 - Self Reliance 98% repayment rate Grameen America - 99%

Grameen America 106 Million Americans who are “under banked” Loans • Education • Financial Services Loans $500 -$3000 …… 99. 3% Repayment

Bankers Without Borders • Connects skills, passions and resources to end global poverty. • Business expertise: To scale up microfinance solutions. Grameen. Foundation. org

Before Micro Finance there were Credit Unions!

What’s Happening? • Relentless Competition • Rising Cost of Operations, IT, Branches. • Cost of Effective Marketing, Branding and Customer Acquisition.

Why Can’t We Think of Anything Truly New? 1. Need for Predictable Financial Return 2. Risk Analysis 3. Historical Business Model

In what areas have you developed and rolled out significant customer-impacting innovation in the past 24 months? a) Products b) Marketing and Branding c) Customer Service and Care

The Challenge for Financial Institutions Legacy Thinking + Legacy Systems Drives Anti-Customer Arrogance

Old Growth - New branches, high cost, older customers New Growth - Internet, Low cost, younger customers Old customers want personalized, face -to-face service. Young customers want new products, low cost, fast convenience, and a brand that stands for something.

Leadership of the Past GAIN GROW GIVE Vision is a Metric Acquire, Fire, Divest Image Ebita Leverage Assets Public Relations Imagination enslaved by self-interest is incapable innovation that matters.

Purpose Becomes the Business Model • Relevant to Human Well Being • Advocates Consumers Interests • Focused

Leadership of the Future GOOD Improve the Quality of Everyone’s Life GTV GROW Innovation to Benefit Humanity Create New Value GAIN Unique Value Advantage Sustainable Abundance Imagination liberated by noble purpose ignites invention.

Ethical Vision(GTV) • Positive qualities you are famous for • Fundamental criteria for decisions • Strong internal and external identity

A Abundance Create Unique Value Advantage

Be Your Own Benchmark Don’t Compete…Create

Unique Value Advantage • Redraw Market Boundaries • Overthrow Analytical Industry Frameworks & Benchmarks • Value to Infinite & Costs to Zero

Community Banks and Credit Unions • Build communities • Educate their depositors • Promote self-reliance

Invite new customers by radically eliminating COST. Invite + Invent + Idealize (Micro Credit) INVITE (Southwest, Minute Clinic, TATA) III IDEALIZE Idealize value by eliminating negative, dysfunctional, or irresponsible aspects of current business. (Prius, Clif. Bar, Wal-Mart, ING, Virgin. Air) INVENT Invent un-thought of ways to fulfill imagined needs. (Google, e. Bay, i. Pod/i. Tunes, Donnone)

ING Direct A Bank with a Purpose “Leading Americans back to Savings” 20 Million Customers

Banking is Retailing ING Direct • Café Orange • Planet Orange • Wethe. Savers. com

• • Relationships are Structure Values are Culture Customer Advocacy is Brand Financial Literacy & Self Reliance is the Cause

Result • Low cost of customer acquisition • High referral rate • High customer retention

SMARTKETING ™ Marketing That Makes Consumers Smart

THREE CHOICES Famous… for something that matters. Invisible… business and life as usual. Infamous… toxic commitment to self-interest.

If you were a consumer in your community, how would you rate your financial institution? a) Famous for something that matters b) Invisible - One of many generic choices c) Infamous - Tolerated but not trusted

Invest in Your Unique Value Advantage Fastest growing financial institutions spend 2 x on marketing, branding, sales culture, website, online banking…than stagnant credit unions. Source: 2008 National Credit Union Growth Study CEO Advisory Group

What’s Needed • Exaggerate your difference • Megaphone your story • Amplify your culture

You Are Responsible for Your Promise Experience CUSTOMER = and EMPLOYEE COMMITMENT

The Mission of Mission Federal Credit Union… “Our mission is your mission. ”

3 Paths to Unique Value Advantage 1. Nice - human experience - Old 2. Relevant - product experience - Young 3. Excellent - operational experience - Rich Source: Forrester Research Inc.

Your Value is the Experience You Create Systems Touch Points Moments of Truth • Products • Campaigns • Branches • Front line staff • Websites • Telephone contact • Sales Culture • Correspondence • Financial Educ. • Dealing with delinquency • Online/email/vmail • Advertising • Referral treatment • Literature • P. R. • Loan documents • Events of personal significance • Community Outreach • Verbal promises • IT Services • Customer feedback • Disappointments with service • Loan turn-down • Moments of outstanding service

What’s the best thing I can imagine? “ ” If we accept the unacceptable it is because we believe assumptions that are not true. All our failures are failures of: – intention – will – imagination

What’s the best thing you can imagine? DOING, SUPPORTING, INVENTING Just Start

Will Marré Business Innovation Expert & Author - CEO of Rea. Leadership Alliance - Founder of the American Dream Project - Co-founder and former president of the Covey Leadership Center Will’s Books and Projects: • GOOD FORTUNE: Socially-Strategic Capitalism Can Save the World • Save the World and Still Be Home for Dinner • Emmy-winning documentary “Reclaiming Your American Dream” Will’s email address: willmarre@realeadership. com To ask a question over the phone: - Press * 1 on your telephone keypad and the operator will connect you. If you need to withdraw your question, press the # key. 2009 Deluxe Enterprise Operations, Inc. All Rights 67 Reserved.

Q&A To ask a question over the phone: Press * 1 on your telephone keypad and the operator will connect you. If you need to withdraw your question, press the # key. To submit a question online: Click on the Q&A window, located in the lower right-hand portion of your Please take a few minutes to respond to o ur poll! screen. Type in your question and hit the “send” button. If you are in full-screen view, simply click on the question mark icon to open the Q&A window. Your question will only be seen by the speaker and the Deluxe production staff. An audio/visual recording of this presentation will be available on our Reference Library 48 hours after this event. www. Deluxe. Knowledge. Exchange. com 2009 Deluxe Enterprise Operations, Inc. All Rights Reserved. 2009 Enterprise Operations, Inc. All Rights Reserved.

Thank you for participating! Check us out at www. Deluxe. Knowledge. Exchange. com Knowledge Exchange Solutions a. Introducing Experience A training solution on customer experience. We love b. Helping Leaders Motivate feedback! Twenty- one (two to three minute long) videos hosted by loyalty and experience expert Please answ Joe Calloway, that will generate important, thought provoking discussions among er financial industry executives. our poll befo c. Valuing Problems re A training solution on the unique opportunities found in problem resolution. you exit! d. Resolving Problems A training solution for how to provide “wow” experiences while solving customer problems. e. Gathering Stories A training solution for one – or a group of business bankers. It explores the importance of gathering the customer’s story and includes tactics for building relationships with small business customers. f. Small Business Series A training solution for one – or a group of business bankers. In a 30 -minute video, a facilitator leads an exploration of the gap between what small business customers want and what financial institutions are providing their small business customers. g. The Coach Kit A training solution for how to transform managers into coaches – and employees into stakeholders. h. 52 Huddles 52 great ideas for short, team “huddles” that include worksheets, talking points, coaching tips and more – everything you’ll need for a full year of meetings that will strengthen your team. Smart. Simple. Loyalty solutions that work. 2009 Deluxe Enterprise Operations, Inc. All Rights Reserved. 2009 Enterprise Operations, Inc. All Rights Reserved.