ORLANDO, Fla. - While offering metrics on how to measure and manage growth to attendees at CU Journal’s Grow Show, John Dolan-Heitlinger said something else has to be understood first.
“I think you have to decide who you are going to serve,” said Dolan-Heitlinger, a management and planning consultant and the former CEO of Keys Federal Credit Union in Key West, Florida. “What spectrum? There is a spectrum that goes from low cost to those that have a niche. If you get stuck in that middle there, you will not survive. There is a black hole there. You cannot be all things to all people.”
Dolan-Heitlinger reminded that credit unions must keep in mind that not all growth is necessarily good.
The other key factor when it comes to growth is measuring it, Dolan-Heitlinger said.
“Not measuring your results is like flying without instruments,” he said, urging attendees to make sure they use bar charts and graphs when displaying growth trends. “I don’t believe that most board members understand financials when they just look at financial reports.”
The gauges must be honest, he said. “Graphs of important numbers should have honest axes.”
So how much growth should be expected? “Monetary inflation is around 3 to 4%,” Dolan-Heitlinger said. “If you’re not growing more than that, you are essentially standing still.”
To drive growth, performance incentives are essential, he said. “You must have quantifiable incentives. Not things like ‘Try hard.’”
Like several other speakers, Dolan-Heitlinger said it is critical for credit unions to compare their performance to the market, including banks, and not just other CUs. “And if you are in the check-cashing business, your competition is check-cashing stores and liquor stores,” he said.
He further reminded credit unions to give real thought to branch performance. “There’s more concern about having a branch nearby than actually using it,” Dolan-Heitlinger said.
Branch performance is affected by design, location and staff members, he reminded.
