5 steps to form an analytics strategy

Analytics software within the credit union is like a dusty tool sitting in the shed if there is no value-creation strategy for its implementation.

by: Austin Wentzlaff

Many credit unions are beginning to jump on board the Big Data and Analytics bandwagon.  Although the movement toward data-driven decisions is essential in this booming information economy, the tools themselves are worthless without the strategic vision credit union leaders communicate to users.  Even the most skilled user is powerless without a strategy that includes tactical goals to accomplish the short and long-term mission of the credit union.  In order to develop a strategy and accomplish its underlying goals, credit union leaders should follow five steps to integrate analytics software into their strategic vision.

Step 1: Strategy Map

The first step in developing a strategy is building the strategy map.  Including all leaders within the credit union is important to achieving an all-inclusive and comprehensive vision of the objectives that will be necessary to accomplish the strategic goals.  A strategy map includes the different perspectives throughout the credit union (e.g.- Financial, Member, Learning and Growth, Community, etc.).  Seeing the vision from multiple perspectives will allow a creative dialogue to take place and a strategy to begin to form.

Step 2: KPI and Metric Determination

After the strategy map is finalized, Key Performance Indicators (KPIs) and the metrics used to build them must be determined.  This is the most difficult step in developing an execution plan for a strategy. Developing KPIs involves analyzing how each one supports the underlying objective to support the strategy.  It is an area that credit union leadership should dedicate the most time and effort in developing.  Measurement allows managers to determine if the strategy is going according to plan.  When these measurements show that the desired levels are not being met, managers should use corrective actions to steer the tactical objectives back into alignment with strategy.

 

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