Cost Reduction
Credit union executives typically know how to cut operating expenses. There are the easy targets such as reducing staff, and cutting travel and conference expenses. The result however might be a loss of member satisfaction or reduction of efficiency if there are too few employees to cover the branches and call center. Member service can also suffer from poor staff training. Will members simply go elsewhere necessitating another round of cost cutting? What about opportunities that might be lost because new ideas were missed and competitors move ahead and gain market share.
A better approach to cost reduction is to develop cost reduction strategies. The approach begins with identifying controllable expenses that are out-of-line. Next is the need to identify management priorities and long range business strategies that must be preserved as controllable costs are reduced. The Strategic Mark approach is to evaluate the lowest impact ways for cost reduction of targeted expenses while maintaining, or growing, the programs that will produce future revenues. What if the credit union has a serious bottom line problem? It can happen. There are ways to cut expenses quickly but an executive might like an objective outside source for thinking through the choices. Contact Strategic Mark to find a better approach to cost reduction and budgeting that includes a plan of action with recommended improvements and, at your option, quarterly or semi-annual plan reviews to keep your credit union on track.
