By Jeff Rendel
In 2013, management consultant Jim Collins released Great by Choice, a follow up to From Good to Great, written a decade earlier. You may recall that Collins researched more than 20,000 U.S. companies over 25 years to find a set that were the most successful against industry peers. He referred to these companies as “10X.”
Through many keynote presentations, breakout sessions, strategic planning meetings, and advisory services, we incorporated many elements of the research into business models (20-Mile March, Productive Paranoia, Fanatic Discipline, and Empirical Creativity, to name several).
In early 2023, it dawned upon us to ask, “Who are the 10X credit unions?” What credit unions, over long periods of time, have delivered the most balanced and consistent results that should position them for continued growth and service to members? After hundreds of CEO interviews, statistical analysis of 4.7 million data points, and correlation associations to common measures of success, 10 balanced metrics and a final exclusive score emerged.
If You’ve Seen One? No
Following far-reaching review of credit unions in the 90th percentile (about 450 credit unions), one familiar theme emerged: If you’ve seen one credit union, you’ve seen one credit union.
There is not a single formula for success. Credit unions in the top 10% were a mix: billions of dollars in assets to just over 100 million dollars in assets; metropolitan areas to the rural reaches of the USA; community charters to exclusive SEG-focused charters; and many other differences that make our industry so strong through the variations.
Common Traits
In common, credit unions at the top of the list featured:
- Consistent membership growth
- Sturdy core earnings
- Profits that fueled continuous investment
- Exceptional scale in operations
- Ongoing capacity for growth through strong capital.
Mergers played a part for some, but most grew through new members and repeat business. Marketing was a significant investment for all, especially around marketing costs compared to assets, members, and FTES. In general, as the velocity of marketing spend increased, so grew awareness, engagement, and expanded member relationships.
The Top Performers
Below are the credit unions (alphabetically listed) that scored in the top one percent of all credit unions. Congratulations are certainly in order and well-deserved. But, equally important are the distinctions among the credit unions.
One size, region, and/or model does not fit all when it comes to long-term, balanced success. That’s a plus for all credit unions and was consistent throughout the research.
In many ways, the measures in this model allow a look at credit unions with an investor’s stance: historical performance, current operations, capacity for growth, and book value. Since the model is evergreen (new data is entered every quarter), credit unions can get a working sense of balanced success across any period. That’s always helpful for strategic planning, review, and dialogue, as it provides a higher-level indication of progress that is removed from daily operations, monthly board reports, and quarterly call reports.
While the credit unions above earned the highest scores, about 4,600 credit unions remain, each with a unique score and capacity level for continued growth. If you are interested in how your credit union fared, as well as the most meaningful metrics, send an email (jeff@jeffrendel.com) or call/message (951.310.7275).
Jeff Rendel, is a Certified Speaking Professional and principal of Rising Above Enterprises who works with credit unions that want entrepreneurial results in sales, service, and strategy.