Key performance indicators: How do you measure up?

Does your credit union incorporate the cooperative principles when measuring key performance indicators (KPIs)? In a recent Filene report titled: An Examination of Key Performance Indicators Reported by Credit Unions in North America, Professor Daphne Rixon learned that many credit union managers focus so much on the traditional financial metrics that they often lose sight of measuring the credit union’s values and its value to members.

Measurement

Financials are important to credit unions. After all, they are financial institutions in a highly regulated environment. Financial KPIs are necessary but there are opportunities to measure how we are doing living the principles. In some cases, credit unions are measuring without realizing it.

Telling our Story

Professor Rixon suggests that credit unions suffer from an identity crisis. We compare ourselves more closely to other financial institutions rather than other cooperatives. Credit unions have a great story to tell and must find a compelling way to differentiate from banks. The majority of members are most interested in the rates and services which are important, but how do we get them more engaged and become advocates of the difference credit union membership offers?

Final Thoughts

Credit unions should start by educating their own employees on the credit union difference. Your front line staff interacts most with your members – how many of them understand what differentiates the credit union cooperative model? If they are able to articulate that difference when working with members, they can help members better understand the special movement they are a part of.