Here is a quick multiple choice question for you: Why is benchmarking an essential element of pushing your credit union to success?
A. Everybody does it. It starts in Kindergarten.
B. Walking through life with blinders on leads to a lot of bruises.
C. Benchmarking allows you to show your board how great you are.
D. Without data you are just another person with an opinion.
The correct answer is D (although you probably see some value in C as well). As a credit union employee, your job is to improve your credit union's performance. No matter how well you believe your credit union is serving your members’ needs, you can always get better. But how can you be sure you are meeting members needs effectively if you aren’t putting your performance into context?
The practice of benchmarking can help you identify areas where your credit union can improve its performance as well as highlight places you are already outperforming your peers (there is nothing wrong with getting recognition for what you are doing well). It can also highlight trends in the industry that you might not be aware of.
Unfortunately, benchmarking incorrectly can be worse than not benchmarking at all. Poorly generated benchmarks can lead your credit union away from best practices. Your management team might make poorly informed decisions believing that their sophisticated methodology will lead them to the right answer.
If you are not benchmarking at all or if you're not sure if you are benchmarking as well as you could be, attend our complimentary webinar “Unleash the Power of Data for Better Decision-Making:Strategic Benchmarking.” If you want to get a taste of the types of topics that we are going to discuss check out this article: “The Power of Data: Are You Benchmarking Accurately?”