Credit unions love ratios

by: Anthony Demangone

ROA. Delinquency ratios. Fixed asset ratios. Efficiency ratios. The list is long, and important. If you know your ratios and track them, you can see trends jump off the paper.

But not everything can be boiled down into a ratio. And that’s too bad. Because I’d love to see the following ratios put into play.

Negative energy ratio. This ratio measures how often an employee brings a Debbie Downer attitude into a discussion. This is measured by dividing the number of negative/gloomy/whining comments by total workplace interactions. Anything approaching .25 or higher should entitle a prompt corrective action.

Gotcha ratio. This ratio measures how often a colleague helps you, while zinging you at the same time. You’re not sure whether to say thank you or curse after such interactions  “Paul, can you send me the results from that audit?”  “Sure, Tina – you mean the results I emailed you three days ago?” “Yep, Paul – you got me! Those are the ones.” The ratio has a risk-based component – weighing gotcha’s more heavily if given in a public setting or during a crisis.

Life preserver ratio. This ratio measures how often an employee fixes a problem versus how often the run to another employee to have a problem fixed. A high ratio means the employee is a self-starter with responsibility. A low ratio means that other employees grimace when they see your extension ringing their phone.

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