Navigating Technology Changes: A Strategic Guide for Credit Union Leaders

Technology continues to evolve at an accelerating pace, making it essential for credit unions to stay ahead. However, executing technology changes effectively can be challenging. From outdated proprietary systems to third-party solutions that no longer meet organizational needs, recognizing the right time for technology changes and executing them properly is critical. Failure to do so can result in project delays, employee resistance and financial setbacks.

For credit unions, the stakes are even higher. Technology isn’t just a back-office function – it’s central to improving member experiences, enhancing efficiency and maintaining competitiveness. Establishing strong and clear processes for technology change management is crucial.

The Importance of a Structured Approach to Technology Change

Credit unions must establish robust procedures and policies to mitigate the risk of failure. These steps should ensure that any decision to upgrade or change technology is carefully planned, resource-backed and properly executed. The process typically involves multiple phases: Identifying the need for change, evaluating the resources required, setting clear objectives, forming an implementation team, managing resistance and continually improving post-implementation.

Key Policies and Procedures

A well-defined framework is vital for guiding technology changes. The following policies and procedures can help ensure success:

Annual Budgeting Process: Technology projects are often costly. Ensure that technology leaders are actively involved in the financial planning process to account for potential technology expenses. Addressing the risks and costs of not upgrading outdated technology is crucial.
Off-Budget Expense Justification: Not all technology changes align with planned budget cycles. A formal process for off-budget expense justification allows for necessary but unforeseen technology investments.
Capital Project Planning: Credit unions can capitalize on certain technology expenses – such as software customization and testing – when introducing new solutions. Establishing policies around capitalization can expedite decision-making.
Technology Project Charter: This document outlines key project details, including goals, benefits, estimated expenses and timelines. A well-developed charter ensures clarity and alignment across teams.
Vendor Management Policy: Vendor relationships are critical, especially for third-party software solutions. A vendor management policy ensures thorough due diligence and helps align vendor capabilities with strategic goals.
Cybersecurity Policy: As cybersecurity threats increase, it is critical to ensure your technology change policies align with cybersecurity protocols. Clear guidelines on mitigating risks are essential to safeguarding member data.
Artificial Intelligence Policy: As credit unions increasingly adopt AI, policies must be established to outline how these technologies should be implemented in line with the organization’s goals and risk tolerance.

Identifying the Need for Change

Sometimes, a core technology becomes outdated, or the vendor discontinues support, necessitating change. However, voluntary changes require a clear business case. A structured approach helps determine whether a new solution is necessary. Factors to consider include:

The lifespan and performance of the current solution;
Evolving business requirements;
Build vs. buy analysis;
Vendor stability and support capabilities;
Operational impact and talent needs;
Cost of implementation, integration and ongoing maintenance; and
User learning curve and training resources.

Credit unions must also weigh the risks of not uploading technology. Documenting the costs of maintaining outdated systems can help make a compelling case for change.

Building an Implementation Team

Once the decision to upgrade or change technology has been made, it is important to form a diverse implementation team. Including representatives from various departments and levels ensures a well-rounded perspective on the change’s impact. Departmental liaisons can act as champions of the new technology and help address resistance early on.

Establish Clear Goals and Defining Strategy

Goal-setting is an integral part of successful technology change initiatives. The implementation team must answer critical questions, such as:

What problem is the new technology solving?
Who does the change impact?
Why is the solution superior to the alternatives?

Once these questions are answered, a detailed strategy should be defined. This involves outlining key milestones for testing, implementing and reviewing the solution.

Testing and Implementation

Before fully committing to a technology solution, thorough testing in a sandbox environment is essential. This ensures that the new system integrates with existing operations without disruption. Milestones should be established, and deadlines for data migration, testing and launching should be carefully tracked.

Throughout the implementation phase, frequent communication with stakeholders is necessary to ensure transparency and reduce resistance.

Managing Resistance

Resistance is inevitable, especially when changing core systems. Whether it comes from internal staff or external members, involving end-users early in the process is crucial. Providing training, resources and incentives can help ease the transition. Engaging with members through videos, demos and beta versions of new systems can also foster buy-in and reduce the learning curve.

Post-Implementation: Continuous Improvement

Technology change doesn’t end with implementation. Credit unions must continually monitor key performance indicators and gather employee and member feedback to ensure the new system delivers on its promises. Adjustments may be necessary over time, based on evolving business needs, user feedback or regulatory changes. By establishing lifecycle tracking for technology solutions, credit unions can anticipate future needs and ensure that their systems remain efficient and effective.

Managing technology changes effectively for credit unions is crucial for maintaining a competitive edge and delivering superior member services. By establishing robust policies and procedures, creating diverse implementation teams and engaging users throughout the process, credit unions can minimize resistance and maximize the benefits of new technology.

Credit union executives should ensure their organizations have clear frameworks in place to evaluate, implement and improve upon technology changes – transforming challenges into opportunities for growth and innovation.