Kill the credit union org chart: revisited

In 2011 we published a post titled “Kill the Credit Union Org Chart” that continues to drive a substantial amount of site traffic. In that post we outlined a different way of thinking about credit union organizational structure than the typical departmental approach taken by most credit unions. Consider this post a long overdue supplement.
A key question arising from the Kill The Org Chart post is this: Should we rigidly adopt the value chain concept as we define credit union activities, or is it best to customize?

There are two different paths to take in constructing a value chain. The first is to adhere to the tenants of the value chain “religiously,” meaning that the value chain mimics that originally drafted by Michael Porter in Competitive Advantage. The second is to adapt, or customize, the model.

The Challenges Of Rigid Adoption

If the value chain is adopted as Porter describes and without modification, then the primary functions of the value chain look like this:

  • Inbound Logistics
  • Operations
  • Outbound Logistics
continue reading »