HOUSTON-As credit unions seek to drive out costs in their processes and systems, they should be careful to use detailed metrics and benchmarks to make those adjustments, rather than cutting across the board.
Jerome Patterson, Acorn Systems chief marketing officer, says this must be part of the plan. "At the front end of this downturn it was common to say, 'Let's cut staff.' But no one knows really where to cut. So typically it's an across-the-board proclamation - we're going to cut 10%." But that may eliminate essential staff. "You have to be able to make those kinds of decisions based on analysis of a branch's capacity and transaction flow, and also understand the time it takes to perform specific functions," he said. "Often you may come to learn that in some areas you can't cut 10%, while in others you may go as deep as 30%. You have to get down to a more granular level where you make more intelligent decisions."
To eliminate uncertainty, Patterson said Acorn works with CUs and relies heavily on benchmarks. "We don't leave any guesswork. Once we give CUs data that shows the true cost of providing a product or service and the industry standards based on peer size, the credit union now has fact-based and quantitative insights about how to drive out operational inefficiencies."
For info: www.acornsys.com
