MADISON, Wis. (12/6/13)--Credit unions measure a lot of data. Knowledge management--employee expertise--is not among the data they are particularly adept at quantifying, but that should change, according to a Filene Research Institute Report.
Linking employee knowledge to individual and organizational performance can improve the bottom line, according to the report: "Knowledge Transfer Review: The Case of Credit Unions."
Filene and Credit Union Central of Canada contracted with the Institute for Intellectual Capital Research in Ontario to conduct a research study focusing on knowledge transfer in the credit union system. The study collected data from eight credit unions in Canada and seven in the U.S. ranging from $350 million to $3.5 billion in assets.
Just as it's advisable to track loan delinquencies among similar credit unions, credit unions can measure knowledge management best practices and compare them with benchmarking groups, according to the study.
Choosing the right metrics and then measuring them over time is the only way to turn haphazard knowledge management into deliberate knowledge management, the study said.
While some credit unions only sporadically practice knowledge management, virtually all credit unions have sufficient information technology infrastructure in place to implement a knowledge management system.
Credit unions may never spend as much time on knowledge management as they do on loan portfolios, capital ratios or net income, the report acknowledges. But neglecting those measures has consequences and allows good employees to drift away and bad employees to slip by.
The study offers models, metrics and benchmarking reports that participating credit unions used to measure employee knowledge.
Use the resource link for more information on the report.