Once again, credit unions have begun financial planning for the next fiscal
year, and the newly released second quarter data is influencing decisions. Goals
and targets are being created, reassessed, modified, and updated to suit today's
changing economic environment. With interest rates on the rise, credit unions
face the challenge of balancing loan and share growth with income objectives.
This calls for a change in traditional strategic planning so that credit unions
can capitalize on the current economic scenario.
It is essential to remember that not only are the end results of the data
a critical reflection of performance over the past year, but the pathway to
these results must be scrutinized in order for your credit union to maximize
A credit union must develop a strategy whose primary purpose is to answer the
question-what is my credit union's sustainable competitive advantage? And what
is this advantage based on? The key strategic assessment is to ask how much
of a course change does the credit union have to make in its core business activities
either to gain or to retain that advantage. A planning process that assesses
the amount of change to be made is essential.