Assess Everything

Several years ago, Netflix introduced a concept referred to as the “Keeper Test.” As their site says, “if a team member was leaving for a similar role at another company, would the manager fight to keep them?” The test works like an employee assessment.

While credit unions are good at assessing certain areas (our employees, our vendor contracts and our financials), we sometimes overlook key areas that also need a critical eye. In fact, the top performing credit unions in the country actually assess everything.

When assessing performance, there are three particular areas that are often overlooked yet have massive impact on the credit union’s financials: The leadership, the marketing and the board.

Assess Your Leadership

According to new research from Inc. Magazine, leadership teams that sustain alignment on vision, purpose and strategy enjoy a two-time multiplier effect on financial performance. The stronger the leadership, the stronger the credit union.

As author and leadership coach John Maxwell famously wrote, “Everything rises and falls based on leadership.”

One new tool we’ve seen credit unions have success with in this area is The Working Genius model. We all have working geniuses and working frustrations. The Working Genius test reveals those areas for your leadership team. This is not a personality test – it’s a productivity and effectiveness tool at work.

In his book “Good to Great,” business consultant and speaker Jim Collins said, “Get the right people on the bus, the wrong people off the bus and right people in the right seats.” Before putting your leadership team in their credit union bus seat, you have to determine where they best fit. If you want to transform your team, then identify their working genius.

Assess Your Marketing

Marketing touches everything. Credit unions often think they have a loan problem, a new member problem or a deposit problem. The reality is they don’t have any of those challenges: They actually have a marketing problem.

While we audit everything in credit unions, we often overlook one of the most critical elements to our success: Marketing. When was the last time you audited your marketing? If it’s been over three years, then it’s past time to conduct a marketing audit. Why? Because marketing has changed so much in the last 36 months.

In today’s economy, knowing your marketing’s return on investment (ROI) is more important than ever. Marketing pioneer John Wanamaker once joked, “I know half my advertising dollars are wasted. I just don’t know which half.” If you don’t know where your marketing dollars are going, then assess your marketing. A thorough marketing assessment will review your marketing collateral, website, plan, budget, strategy and social media for any shortcomings you might have.

As one CEO of a top performing credit union said recently, “We glance at our competition – we glare at ourselves.”

Assess Your Board

Leadership starts at the top, and that means your board of directors. A board can be your biggest asset or your biggest liability. Be honest: Is your board above average, average or below average? A healthy board is a gift to a credit union’s senior leadership team. So what does that health look like?

A healthy board is based on four key areas: Cohesiveness, clarity, reinforcement and communication.

As Dr. Kay Oldhouser Davis, chairwoman of the $1.7 billion SAFE Federal Credit Union in Sumter, S.C., said, “You’ve got to have a strong, effective and trusted board leadership. You’ve got to have someone in those positions who knows how to run meetings, knows how to work with people and knows how to get things done.”

One thing SAFE’s board did last year was conduct a board assessment. With outside assistance, they examined their performance in those key areas. They were also able to create a customized board development plan for their directors.

An engaged leadership team is a competitive advantage. A successful marketing strategy is a competitive advantage. And a thriving board is a competitive advantage. But those advantages don’t happen by accident – it requires intentionality.

Truly examining your leadership, your marketing and your board takes courage. And it often takes an outside set of eyes. We are too close to these areas to gain a true understanding of how they are performing.

Sometimes even minor tweaks can lead to major results. But you have to know what those tweaks are. You have to assess everything.

Mark Arnold is founder and president of On the Mark Strategies, a Dallas, Texas-based consulting firm specializing in branding and strategic planning for credit unions.