MADISON, Wis. (2/15/08)--The Filene Research Institute has released a new study that addresses how credit unions can measure success when industry averages aren’t a useful comparison.
“Financially ‘High Performing’ Credit Unions: Evaluating Performance within a Strategic Financial Vision” by Harold M. Sollenberger, outlines a methodology and approach designed to enable credit union management teams to assess financial performance in meaningful ways, says Filene. Sollenberger is professor of accounting and information systems with the Eli Broad Graduate School of Management at Michigan State University. He has taught for 25 years and often is an instructor at the Credit Union National Association’s Financial Management School. In the report, Sollenberger answers the credit union research questions:
* 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 is relative to a credit union’s strategic financial vision, its peer group, selection of financial ratio measures and actual financial results, Sollenberger said. The study also addresses the unique mission of credit unions and how it affects goals. Sollenberger frames financial performance measurement within a credit union’s specific strategic financial vision. He then outlines various strategic vision models and measurements for credit unions to consider, illustrating his methodology with actual credit union data. For more information, use the link.