MADISON, Wis. - Measuring a credit union’s performance against another “high-performing” credit union raises a difficult question: what is a high-performing CU?
Seeking to answer what exactly “high-performing” means can vary amid the wide variety of sizes and types of credit unions in the marketplace, notes the Filene Research Institute in a newly released report that tackles that very issue.
The study, by Dr. Harold M. Sollenberger and titled, “Financially “High-Performing” Credit Unions: Evaluating Performance within a Strategic Financial Vision,” outlines a methodology and approach designed to enable credit union management teams to assess financial performance in meaningful ways.
Sollenberger, professor of accounting and information systems with the Eli Broad Graduate School of Management at Michigan State University, examines:
What constitutes “high performance” when compared with others?
* How do you measure your institution?
* Against what institutions do you measure your credit union?
Effective assessment of financial success, said Sollenberger, is relative to a credit union’s strategic financial vision, its peer group, selection of financial ratio measures, and actual financial results.
The Filene Institute said Sollenberger hasn’t neglected to address the unique mission of credit unions and how it affects goals. He frames financial performance measurement within a credit union’s specific strategic financial vision, and he goes on to outline various strategic financial vision models and measurements for credit unions to consider. He illustrates his methodology with actual credit union data.
For info: http://www.filene.org.
For More Info
For details on this report, visit Filene at www.filene.org.
